Packing machine capacity determination amended to prescribe monthly pouch capacities and expedited re-determination and payment timelines.
The amendment substitutes rule 5 to prescribe monthly deemed pouch production per operating packing machine based on retail price bands and machine maximum packing speeds, treats each track/line of a multi-track machine as a separate machine for capacity calculation, mandates re-determination of annual capacity by the Deputy/Assistant Commissioner within three working days of commencement, fixes the monthly duty payment deadline for March 2016, and revises FORM-2 to set out duty break-up and columns for CENVAT credit and cash payment.

Duty apportionment ratios for pan masala updated to specify allocation across excise, additional excise, and calamity duty.
Substitutes item (iv) of FORM 2 in the Pan Masala Packing Machines Rules, 2008 to prescribe a detailed duty apportionment framework requiring separate allocation ratios and reporting of amounts for Central Excise Duty, Additional Duty of Excise, National Calamity Contingent Duty, Education Cess and Secondary and Higher Education Cess for pan masala and pan masala containing tobacco.

Brand labelled goods with retail sale price above prescribed threshold lose miscellaneous exemption under amended central excise notification.
Inserts a new exemption entry applying to goods classifiable in Chapters 61, 62 and 63 (excluding laminated jute bags) limited to goods bearing or sold under a brand name and meeting a specified retail sale price threshold, thereby amending the Table of exemptions in Notification No.1/2011-Central Excise.

Exemption for first clearances of specified jewellery limited by aggregate caps and restricted input and capital goods credit usage.
The amendment adds an exemption from whole excise duty for first clearances of certain jewellery under chapter 7113, excluding most silver jewellery but including specified studded silver, subject to an aggregate annual value cap and a transitional lower cap for March. It bars manufacturers availing the exemption from claiming input duty credit or capital goods credit for affected clearances, excludes inputs used for goods bearing another person's brand where ineligible, and adjusts aggregate-clearance and branded-goods limitations, while treating clearances for home consumption to include exports to Bhutan.

Interest on provisional excise assessments clarified: delayed payments attract interest from the day after the due date until paid.
The amendments revise commencement dates and clarify that an assessee is liable to pay interest on amounts under provisional assessment not paid by the due date, with interest running from the day after the due date until actual payment; an illustrative example demonstrates interest calculation for staggered payments and final assessment. Eligibility thresholds for small manufacturer concessions under rule 8 are redefined for specified jewellery and other manufacturers. Terminology is changed to "Annual Return," provisions extended to export-oriented units, revised-return windows are prescribed and treated as the "relevant date" for recovery, and certain attestation and procedural provisions are omitted or updated.

Rescission of notification under Central Excise Act withdraws prior notification's effect, subject to pre-existing actions preserved.
The Central Government, invoking its authority under the Central Excise Act, rescinded Notification No. 9/2012-Central Excise (N.T.), dated 17 March 2012, withdrawing that notification in the public interest while preserving a savings provision that leaves intact things done or omitted before the rescission.

Exemption for cotton goods clarified: branded high priced cotton products excluded from central excise relief.
Substitutes the entry for serial number 7 in Notification No.7/2012 to exempt all goods of cotton not containing any other textile material, while excluding goods bearing or sold under a brand name that meet the specified retail sale price (RSP) threshold. An explanation clarifies that such cotton goods include items made from pure cotton fabrics even if they incorporate non cotton sewing threads, cords, labels, elastic tapes, zip fasteners or similar items used for stitching, fastening, holding or adornment.

Exemption disapplication for expanded gold and silver producers: existing units that expand or install new plant lose area-based exemption.
The amendment inserts a uniform provision into the listed notifications that the exemption shall not apply to an industrial unit existing on 1st March, 2016 which undertakes substantial expansion or installs fresh plant, machinery or capital goods for production of gold or silver and commences commercial production from such expanded capacity or new plant on or after 1st March, 2016.

Exemption for jewellery manufacturing expanded to include silver jewellery studded with specified gemstones, relieving certain factories from listed conditions.
Amendment inserts a new sub-clause providing that every manufacturing factory or premises engaged in the manufacture or production of articles of jewellery, other than articles of silver jewellery but inclusive of silver jewellery studded with diamond, ruby, emerald or sapphire and falling under the relevant tariff classification, shall be exempted from sub-clauses (i) and (ii) of clause (8) of the principal notification.

Centralized registration for jewellery manufacturers allows single-site compliance subject to billing and recordkeeping requirements and premises reporting.
Where a manufacturer of specified articles of jewellery operates a centralised billing or accounting system for goods produced at multiple factories or premises, the manufacturer may opt to register only the one factory, premises or office from which such centralised billing or accounting is done and where accounts and records of receipts of raw materials and finished excisable goods, including goods returned from job workers, are kept; the manufacturer must give details of all premises (other than job workers') from which such specified goods are removed, and may alternatively take separate registrations for premises where accounts are maintained.

Exemption exclusion for refined gold and silver production limits exemptions for new or expanded units commencing after March 1, 2016.
Amendments to notifications 56/2002, 57/2002, 20/2007 and 01/2010 insert that the exemption shall not apply to (a) new industrial units producing refined gold or silver commencing commercial production on or after 1 March 2016, and (b) existing units as on 1 March 2016 that substantially expand or install fresh plant, machinery or capital goods for such production and commence commercial production from the expanded capacity or new assets on or after 1 March 2016.

Excise non-recovery: directed non-payment of duty on animal-feed grade di-calcium phosphate for specified past period.
A central government notification directs that excise duty on Di Calcium Phosphate (animal feed grade) of rock phosphate origin, not levied due to a prevailing practice during 1 February 2008 to 1 February 2014, shall not be required to be paid; the direction is issued under the government's statutory administrative power to relieve past duty liabilities where such a practice existed.

Export of excisable goods without payment of duty extended to include Kholongchhu hydro-electric project under bonded export rules.
Amendment adds Kholongchhu Hydro Electric Project in Bhutan to the projects eligible for export of excisable goods without payment of Central Excise duty under bond by substituting the marginal heading and revising the project list in paragraph 1(5) of Notification No. 45/2001-Central Excise (N.T.), pursuant to rule 19 of the Central Excise Rules, 2002.

Cenvat credit restrictions bar using specified duty credits for Swachh Bharat Cess and allow credit for commission sales services.
The CENVAT Credit (Second Amendment) Rules, 2016 amend the CENVAT Credit Rules, 2004 by adding an Explanation in rule 2 to include services by way of sale of dutiable goods on commission basis as sales promotion, and by inserting a proviso in rule 3(4) that the CENVAT credit of any duty specified in sub-rule (1) shall not be utilised for payment of the Swachh Bharat Cess.

Cenvat credit entitlement restored: ship breaking units may claim full CVD credit following rule proviso removal.
The proviso to rule 3(1)(vii) of the CENVAT Credit Rules, 2004 is omitted by the CENVAT Credit (First Amendment) Rules, 2016, effective from 1 March 2015, thereby allowing ship breaking units to claim the full credit of countervailing duty paid on inputs and input services where the proviso had previously limited the availment of credit.

Basic Excise Duty increase on petrol and diesel announced, substituting higher tariff entries effective 31 January 2016.
Amendment increases the Basic Excise Duty on petrol and diesel by substituting higher per litre rates for the entries in serial numbers 70 and 71 of the tariff table in Notification No.12/2012 Central Excise, with the change taking effect from 31 January 2016.

Sunset clause for excise exemptions limits their duration and excludes goods undergoing only minor processing in Jammu and Kashmir.
Amendments add a sunset clause to Notifications No.56/2002 and No.57/2002, limiting exemption applicability to no later than 31st March, 2016, and insert a provision excluding from the exemption goods in the State of Jammu and Kashmir that have been subjected only to preservation, cleaning, packing or repacking in a unit container, labeling or re-labelling, sorting, or declaration/alteration of retail sale price and not to any other processes amounting to manufacture.

Increase in Basic Excise Duty on petrol and diesel via amendment to tariff notification, effective mid-January.
Substitutes revised Basic Excise Duty entries in the table of Notification No.12/2012-Central Excise at serial numbers 70 and 71, replacing column (4) rates for items (i) and (ii) to increase duties on petrol and diesel (branded and unbranded). Made under section 5A of the Central Excise Act, 1944, the amendments take effect from 16 January 2016 and further amend the principal notification and its prior amendment.

Basic excise duty increase on petrol and diesel implemented, amending notification to raise per litre rates effective January second.
Amendment increases the Basic Excise Duty rates for petrol and diesel by substituting revised per-litre entries in the Table of Notification No.12/2012-Central Excise for the specified serial numbers and item entries, enacted under section 5A(1) of the Central Excise Act as a public interest measure and effective from 2 January 2016.

CENVAT Credit amendment expands eligible intermediaries to include Authorized Couriers registered with customs authorities for credit treatment.
Amendment to rule 9(1)(d) of the CENVAT Credit Rules, 2004 inserts that, after "Foreign Post Office", the words "or, as the case may be, an Authorized Courier, registered with the Principal Commissioner of Customs or the Commissioner of Customs in-charge of the customs airport," shall be inserted, thereby conditioning treatment for CENVAT purposes on such registration.