New Excise Procedure for Textiles & Their Articles

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.... the trade practices and the suggestions received, new excise procedures - (by way of amendment to rules, notifications and issuance of executive instructions) have been framed, which are being notified today. The salient features of these are as follows: (A) CHANGES IN THE CENTRAL EXCISE AND CENVAT CREDIT RULES (a) Central Excise Rules, 2002 are being amended so as to prescribe special procedure for Textile and Textile articles. Under the special procedure, the duty liability, accountability and the responsibility for complying with the excise procedures (such as registration, return filing, maintenance of records) would rest with the person who gets yarns, fabrics or readymade garments manufactured or processed on job work. Such per....

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....ual manufacturer (e.g. a yarn manufacturer) may also send some goods to a job worker for further manufacture and receive back the goods after job work, and if such manufacturer has a credit balance in respect of inputs used in other goods (including goods manufactured on job work basis), the same can be utilized for payment of duty on clearances of the goods received after job work. (e) In case a person wants to pass on the credit on goods sold by him without any manufacture, he is required to undertake registration as registered dealer. (f)In certain cases, some of the intermediate processes may be either exempt (for example, being carried out without aid of power or steam) or are not excisable (such as sizing of yarn). In order to e....

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....able clearances, even though some of these inputs were used for making goods cleared without payment of duty under the job work scheme. (i) Credit of duty paid on capital goods can be taken only by the manufacturer in whose premises the capital goods are installed. (j) As the manufacturer and traders are expected to have stock of inputs as on 31.03.2003, for which they may not be in a position to produce documents evidencing payment of duty, provisions are being made to give a one time credit for the inputs and/or inputs contained in the finished products lying in stock as on 31.03.2003. This facility would be available to all such persons, who would be required to pay duty or pass on the credit i.e. manufacturers, persons getting the....

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....oods on payment of duty (even if he is actually undertaking job work and is not actually selling the goods back to the trader) the duty would be worked out on the value calculated on the basis of the price of inputs i.e. yarn or grey fabric price plus the actual job charges. (l) It has been brought to notice that sometimes sale of yarns, fabrics o: readymade garments take place on approval basis. in such cases, the goods are sent to the buyer under a challan or proforma invoice and the sale is finalised after the approval of the buyer, The buyer may reject part or whole of the goods or negotiate the price depending upon the quality. In order to accommodate such practice within the framework of the excise law, it is proposed to permit rem....

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.... (c) The officers may be instructed not to visit the premises of the new assessees, to verify the stock or premises (except in respect of traders), unless there is a specific intelligence. Such verification, if any, will be done only with the approval of the jurisdictional Additional/ Joint Commissioner, who will record the reasons for such verification in writing. So long as the assessee keeps the records of production, clearance, particulars of receipt of inputs and pays the applicable duty, all procedural lapses; if any, should be ignored. Till further instructions, no audit or preventives checks would be carried out without specific intelligence and prior approval of Commissioner. (d) The application for registration for these new r....