The Central Excise Rules, 2002 have been amended as under (with immediate effect i.e. with effect from 1-3-2007)  

1  An explanation has been inserted in rule 8 to provide that for the purposes of this rule the expression 'duty' or 'duty  of excise'  shall  also  include  the 'amount' payable in terms of the CENVAT Credit Rules, 2004.   Therefore, all amount payable like payment under rule 6 (3) of the CENVAT Credit Rules, 2004 etc., can be paid along with duty payable by 5th or 15th of the next month;

2 Rule 8 has been further amended to make e-payment mandatory for payment of duty by all assessees who have paid excise duty of rupees 50 lakh or more in cash during the preceding financial year.   This provision would come into effect from 01.04.2007;  

3 Sub-rule (2) of rule 11 has been amended to provide that the invoice shall also contain address of the jurisdictional Central Excise Division.   This change will come into force from 01.04.2007;  

4 Rule 21 has been amended to increase the power of remission given to various officers of central excise.  

5 Rules 25 & 26 are being amended to reduce the minimum penalty from the present level of rupees ten thousand to rupees two thousand.   This change will be effective on enactment of Finance Act, 2007.

6 A new sub-rule (2) has been inserted in rule 26 to provide for penal action against the person who issues CENVAT invoices without delivery of goods mentioned therein and also against the person who is involved in fabricating Central Excise documents or any other document like shipping bill, bill of lading, etc., based on which the user of said document is likely to take or has taken any ineligible benefits like CENVAT credit, refund, etc.;

Mandatory e payment and expanded definition of duty tighten CENVAT payment and invoicing compliance, with new penalties for fabricated documents. The Rules amend the definition of duty to include amounts payable under the CENVAT Credit Rules, allow payment of such amounts with monthly duty dues, mandate electronic payment for high-value payers, require invoices to show the jurisdictional division address, expand remission powers, reduce the minimum monetary penalty, and create penal liability for issuance of CENVAT invoices without delivery or for fabrication of excise and shipping documents that produce ineligible benefits.