Daily production report under preview of excise law.

[Guest]

What is importance of daily production report under excise law?. is it mandatory? and is there any reference to rule,act,circular/notification?.

[KASTURI SETHI]

Yes. It is mandatory under Rule 10 of Central Excise Rules, 2002.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir. Thanks.

[YAGAY andSUN]

Rule 10 only says recording in DSA. It never say about Daily Production Slips. There was mention about the Production Slips in old Rules but now there is no relevance of DPSs.

Rule 10 is reproduced here for your ready reference:-

10. Daily stock account.-

(1) Every assessee shall maintain proper records, on a daily basis, in a legible manner indicating the particulars regarding description of the goods produced or manufactured, opening balance, quantity produced or manufactured, inventory of goods, quantity removed, assessable value, the amount of duty payable and particulars regarding amount of duty actually paid.

(2) The first page and the last page of each such account book shall be duly authenticated by the producer or the manufacturer or his authorised agent.

(3) All such records shall be preserved for a period of five years immediately after the financial year to which such records pertain.

¹[(4) The records under this rule may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature.

(5) The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee preserving digitally signed records.]

[KASTURI SETHI]

Dear Querist,. PL. Note the first line of Rule 10,. "--------shall maintain proper records on a daily basis ------------.". It will solve your problem.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir.

[YAGAY andSUN]

It is DSA i.e. Daily Stock Account but not the Production Slips. Gone are those days, when Production Slips were used to be prepared.

[Ganeshan Kalyani]

The Querist did not mentioned about production slip in his query. In fact he is seeking clarification as regard production report. The production report is possible to derive only when proper accounts is maintained as clearly emphasised by an expert Sri Kasturi Sir. Thanks.

[MUKUND THAKKAR]

What is importance of daily production report under excise law.

let me explain on what basis you will enter your production details in daily stock account (RG-1) ? monthly return. ER-1. you need Documentary evidence. your RG-1 is documentary evidence and your daily production report is sub evidence of RG-1.

I one again 100% agree with Sh. kasturi Sethji .. he was spend his more than 35 years in Excise dept..

[YAGAY andSUN]

There is relevance of maintaining Daily Production Report as there is no mention in any Rule,Circular and in Notification about this. However, on yearly basis there is a requirement to furnish a list of Private Records maintained by the assessee.

Rule 10 says the DSA must be maintained on daily basis.

[Guest]

Dear all experts

Thank you very much for valuable reply. Now i got the conclusion that there is no requirement of daily production report/slip as per excise law. The DSA is mandatory under 10 of CER 2002.

Thanks and regards

Arunachalam

[MUKUND THAKKAR]

it is Human tendency always searching short cut.. any way you choose what ever you want to heard. all the best for future litigation..

AI Summary

Daily Stock Account mandatory under excise rules; production slips not required, maintain daily records and preserve them. Rule 10 mandates maintenance of a Daily Stock Account with daily entries of goods produced, opening balance, quantities produced and removed, assessable value, duty payable and duty paid; first and last pages must be authenticated and records preserved for five years. Electronic preservation with digital signature is permitted under conditions specified by the Board. Production slips are not separately required; production reports can be derived from the DSA and statutory returns as documentary evidence.