Intimation to be filed by 12.09.2007

CBEC has issued a circular no. 854/12/2007/CX dated 07.09.2007 and instructed the manufacturing units of Pan Masala, Gutkha and Chewing Tobacco to file intimation appended to the circular by 12.09.2007.

With the intention to curb evasion of excise duty by the manufacturers of Pan Masala, Gutkha and Cheqing Tobacco, CBEC has also prescribed the procedures for "Working and Non Working Packing Machines", "Number of Shifts operated" and "Records of Inputs" to be complied by the manufacturer.

At present excise duty on Pan Masala and Gutkha is levied at the rate of 46.35% and 67.98% respectively.

(Note: - It is very difficult to thinks that in the era of cutthroat competition, after payment of such high duty, the manufacturer would become wiser, and pay duty honestly. This circular shows that all the penal and draconian provisions of Central Excise failed. Any improvement because of this circular is certainly doubtful.)

Intimation requirement for excise duty compliance: manufacturers must report packing machine usage and input records to curb evasion. Manufacturers of Pan Masala, Gutkha and Chewing Tobacco must submit a prescribed intimation by 12.09.2007 as required by CBEC Circular No. 854/12/2007/CX, which prescribes reporting on working and non-working packing machines, number of shifts operated, and records of inputs to detect and deter excise duty evasion; the release notes this comes against high excise duty rates for Pan Masala and Gutkha.