Notf. No.26/2006 CE (NT) 28.12.2006

[Rajan Rajan]

Specal procdure for removal of excisable goods carrying out for certain process u/r 16c of  CE Rule, 2002. Notf. No.26/2006 CE (NT) dt. 28.12.2006. capacity constraints we are sending our excisable goods to various job worker under 16c challan without paymant of duty  for further process (cutting/slitting)after process the goods directely  dispatched from the premises of the job worker to the customer on payment of Excise duty.

Kindly let us know whether the 16c challan PIII coloum to be filled at parent factory, becasue Job worker  premise iteself material dispatched duty paid.

As per my understanding  there is no  time limit to close filled  the 16c challan  ie. 180 days time limit not applicable like u/r 4(5) a  challan.

Kindly give your valuable views

[Hariharan Kalpathy]

It appears that you have obtained special permission from your jurisdictional commissioner of central excise under Rule 16 (C) of CER, 2002, to remove excisable goods, manufactured in your factory, without payment of duty for carrying out certain process not amounting to manufacture. Further, it also appears that you are allowed by the commissioner to remove the said goods from the jobworker premises for home consumption on payment of duty. In this case, you are bound to fulfill all conditions imposed on you by special order / permission of the Commissioner only. Since there is not any prescribed records by the CBEC , you should keep / preserve all inward, outward and duty payment documents of transactions to avoid any litigation in future.

AI Summary

Removal of excisable goods without duty permitted subject to commissioner conditions and strict recordkeeping requirements. Special permission from the Commissioner allows removal of excisable goods without payment of duty for non manufacturing processes at job workers, and permits direct dispatch to customers on payment of duty when authorised; the manufacturer must comply with all conditions in the Commissioner's order. In absence of Board prescribed records, the manufacturer should retain inward, outward and duty payment documents to demonstrate compliance and prevent future litigation.