CHAPTER 4
Part-III
SPECIAL PROCEDURE FOR REMOVAL OF LIQUID GASES -PASS-OUT SYSTEM1. Special Procedure1.1 Removal of liquid gases will be permitted in a tanker lorry from the factory of themanufacturer on provisional determination of central excise duty liability and provisionalentry in Daily Stock Account maintained under rule 10 of the
Central Excise (No.2) Rules,2001 (hereinafter referred to as the said Rules), at the time of clearance from the factory.
The invoice under rule 11 of the said Rules will be allowed to be prepared afterwards andthe duty will be discharged under the provisions of rule 8 of the said Rules, subject to theobservance of the following procedure: -
(a) The assessee shall submit a written request to the Assistant Commissionerof Central Excise or the Deputy Commissioner of Central Excise havingjurisdiction over the factory alongwith an undertaking that he shall abideby all conditions and restrictions as may be specified, for permitting thePass-Out System for removal of Liquid Gases.
(b) The liquid gases shall be removed in the tanker lorry under the Pass-outdocument as per duly filled in proforma at (Annexure 9).
(c) The pass-out document shall indicate, inter alia, the description, netquantity of goods being despatched (gross weight minus tare weight oflorry tanker), duty liability on such net quantity.
(d) This net quantity and duty leviable thereon (provisional) shall beprovisionally entered/recorded in the Daily Stock Account at the time ofclearance from the factory. For the sake of clarity it is mentioned thatsuch “provisional calculation of duty and provisional entry should not beconstrued as “provisional assessment under rule 7 of the Rules”.
(e) The pass out document shall be made out in triplicate by using double-sidecarbon paper.
(f) All pass-out documents shall bear printed serial numbers and shall be pre-authenticatedby the Inspector of Central Excise having jurisdiction overthe factory before they are put to use.
(g) The original and duplicate copy of the aforesaid document willaccompany the goods to the destinations. The assessees shall retain theTriplicate copy.
2.1 The quantity delivered to or received by each customer shall be recorded onoriginal and duplicate copies of each pass-out document under the customer’ssignature.
2.2 On completion of deliveries, the quantity actually delivered, the quantity actuallyreturned in tanker lorry and the quantum of loss, if any, shall be duly recorded in the DailyStock Account. The provisional entry relating to quantity of removal and the duty liabilityshall be converted into final entry in Daily Stock Account immediately after the return ofthe lorry tanker [after a single trip/transportation] or latest by next morning.
2.3 After return of the tanker lorry, customer-wise Invoice/Application for Removalmay be prepared based on the quantity actually delivered. Central Excise duty wherepayable shall be determined and paid by the assessee in terms of rule 8 on the totalquantity of the non-exempted liquid gases delivered to the customer and on thequantity of transit loss and other losses, if any.
2.4 In case both non-exempted and exempted deliveries are effected from thesame tanker, the respective invoice/clearance document raised subsequently mustindicate the nature of each delivery very distinctly.
2.5 In case of transit and/or other losses the assessee shall be liable to pay centralexcise duty on the quantity of such losses as determined at the highest effective rateprevailing on the date of removal of the consignment. The assessee shall give a writtenundertaking in this regard, on each copy of Pass-out document covering the goods.
2.6 All Invoices/clearance document shall be dated as per the date of despatch ofthe consignment and cross-reference shall be maintained in the pass-out document.
2.7 The original copy of the Pass-out document showing particulars of the quantitydespatched, quantity delivered to the individual consignees/customers, Final entryNo./date in Daily Stock Account including quantity returned and accounted for therein,shall be handed over to the Sector Officer immediately after the return of the lorry tankerand the final accountal. The consignor factory should obtain an acknowledgement forthe submission of the original Pass-out document. The assessee shall retain the duplicatecopy of the completed Pass-out document for his record.
2.8 Before filling the lorry tanker for the next supply/clearance, the quantity of thegoods already contained therein (left over undelivered goods of the previous supply)should be re-ascertained and any difference between the quantity returned from theprevious clearance and the quantity re-ascertained as above shall be treated asstorage loss within the factory on which the assessee shall be liable to pay duty. Suchdifferential quantity and the particular duty thereon should be recorded in theappropriate column of Daily Stock Account.
Presented by eximkey.com