8. Manner of payment.-

(1) The duty on the goods removed from the factory or the warehouse during a month shall be paid by the 6th day of the following month, if the duty is paid electronically through internet banking and by the 5th day of the following month, in any other case [OLD- the 5th day of the following month ]:

Provided that in case of goods removed during the month of March, the duty shall be paid by the 31st day of March:

Provided further that where an assessee is eligible to avail of the exemption under a notification based on the value of clearances in a financial year , the duty on goods cleared during a quarter of the financial year shall be paid by the 6th day of the month following that quarter, if the duty is paid electronically through internet banking and in any other case , by the 5th day of the month following that quarter , except in case of goods removed during the last quarter, starting from the 1st day of January and ending on the 31st day of March, for which the duty shall be paid by the 31st day of March.

Explanation-1. – For the removal of doubts, it is hereby clarified that,-

[OMITTED - (a) an assessee, engaged in the manufacture or production of articles of jewellery, other than articles of silver jewellery but inclusive of articles of silver jewellery studded with diamond, ruby, emerald or sapphire, falling under chapter heading 7113 of the First Schedule of the Tariff Act shall be eligible, if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year, computed in the manner specified in the said notification, did not exceed rupees twelve crore; ]

(Above item (a) has been omitted  NTF. NO. 35/2016-CE (NT), DT. 26/07/2016)

(b) an assessee [OMITTED - , other than (a) above,] shall be eligible, if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year, computed in the manner specified in the said notification, did not exceed rupees four hundred lakhs.

(In above item (b) the expression “other than (a) above” has been omitted  NTF. NO. 35/2016-CE (NT), DT. 26/07/2016)

(Above Explanation 1 has been substituted vide NTF. NO. 08/2016-CE (NT), DT. 01/03/2016 )

[OLD- Explanation.1. - For the purposes of this proviso, it is hereby clarified that an assessee shall be eligible, if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year, computed in the manner specified in the said notification, did not exceed rupees four hundred lakhs.]

Explanation.2. - The manner of payment as specified in this proviso shall be available to the assessee for the whole of the financial year.

(Above second proviso & explanation has been substituted vide NTF. NO. 05/2010-CE(N.T.), DT. 27/02/2010)

[OLD-Provided further that where an assessee is availing of the exemption under a notification based on the value of clearances in a financial year, the duty on goods cleared during a calendar month shall be paid by the 16th day of the following month, if the duty is paid electronically through internet banking and by the 15th day of the following month, in any other case, [OLD- the 15th day of the following month ] except in case of goods removed during the month of March for which the duty shall be paid by the 31st day of March.

(In above sub-rule (1) words and figure "the 6th day of the following month, if the duty is paid electronically through internet banking and by the 5th day of the following month, in any other case" & in proviso 2 words and figure "the 16th day of the following month, if the duty is paid electronically through internet banking and by the 15th day of the following month, in any other case," has been substituted vide NTF. NO. 34/2007-CE(N.T.), DT. 11/09/2007)

Explanation.- For the purposes of this rule,-

(a) the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date;

(b) if the assessee deposits the duty by cheque, the date of presentation of the cheque in the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which the duty has been paid subject to realization of that cheque.;]
 

[OMITTED - Provided also that an assessee, who has paid total duty of rupees one lakh [OLD- rupees ten lakh ] or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year [OLD- duty of fifty lakhs rupees or more, other than the amount of duty paid by utilization of CENVAT credit, in the preceding financial year ], shall thereafter, deposit the duty electronically through internet banking. ]

(Above third proviso has been omitted vide NTF. NO. 19/2014-CE (NT), DT. 11/07/2014 wef 01/10/2014)

(In above third proviso at  sub-rule (1) the words "rupees one lakh" has been substituted  vide NTF. NO. 15/2013-CE (NT), DT. 22/11/2013)

(In above third proviso, the words "total duty of rupees ten lakh or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year" has been substituted vide NTF. NO. 04/2010-CE(N.T.), DT. 19/02/2010)

(Above third proviso has been inserted vide NTF. NO. 08/2007-CE(N.T.), DT. 01/03/2007 With effect from the 1st day of April, 2007)

(sub-rule (1) has been substituted vide Ntf. No. 12/2003(NT)-CX, Dt. 01/03/2003)

[OLD - (1) The duty on the goods removed from the factory or the warehouse during the first fortnight of the month shall be paid by the 20 th of that month and the duty on the goods removed from the factory or the warehouse during the second fortnight of the month shall be paid by the 5 th of the following month:

Provided that in the case of goods removed during the second fortnight of the month of March, the duty shall be paid by the 31 st day of March:

Provided further that where an assessee is availing of the exemption under a notification based on the value of clearances in a financial year, the duty on goods cleared during a calendar month shall be paid by the 15 th day of the following month.

Explanation.- For removal of doubts, it is hereby clarified that the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date.]

(1A) Notwithstanding anything contained in sub-rule (1), the duty on the clearances in the month of November, 2015, by an assessee in the State of Tamil Nadu and the Union Territory of Puducherry (except Yanam and Mahe) [OLD- State of Tamil Nadu], payable by the 5th or the 6th of the December, 2015, as the case may be, shall be paid by the 20th December, 2015.

(In sub-rule (1A), the words "State of Tamil Nadu and the Union Territory of Puducherry (except Yanam and Mahe)" has been substituted vide NTF. NO. 26/2015-CE (NT), DT. 18/12/2015 )

(Above sub-rule (1A) has been substituted vide NTF. NO. 25/2015-CE (NT), DT. 09/12/2015 )

(1B) Every assessee shall electronically pay duty through internet banking :

Provided that the Assistant Commissioner or the Deputy Commissioner of Central Excise , for reasons to be recorded in writing , allow an assessee payment of duty by any mode other than internet banking.

(Above sub-rule (1B) has been inserted vide NTF. NO. 19/2014-CE (NT), DT. 11/07/2014 wef 01/10/2014)

(2) The duty of excise shall be deemed to have been paid for the purposes of these rules on the excisable goods removed in the manner provided under sub-rule (1) and the credit of such duty allowed, as provided by or under any rule.

(3) If the assessee fails to pay the amount of duty by due date, he shall be liable to pay the outstanding amount along with interest at the rate specified by the Central Government vide notification under section 11AA  [OLD-  section 11AB  ]of the Act on the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount.

(In above sub-rule (3) the word, figures and letters"section 11AA" has been substituted vide NTF. NO. 08/2012-CE (NT), DT. 17/03/2012)

(3A) If the assessee fails to pay the duty declared as payable by him in the return within a period of one month from the due date, then the assessee is liable to pay the penalty at the rate of one per cent. on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues.

Explanation.- For the purposes of this sub-rule, „month‟ means the period between two consecutive due dates for payment of duty specified under sub-rule (1) or the first proviso to sub-rule (1) , as the case may be.

(Above sub-rule (3A) has been substituted vide NTF. NO. 19/2014-CE (NT), DT. 11/07/2014 wef 01/10/2014)

[OLD- (3A) If the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilizing the CENVAT credit till the date the assessee pays the outstanding amount including interest thereon; and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow. ]

(Above sub-rule (3A) has been substituted vide NTF. NO. 13/2006-CE(NT), DT. 01/06/2006)

[OLD-
(3A) If the assessee defaults in payment of duty by the date prescribed in sub-rule (2) and the same is discharged beyond a period of thirty days from the said date, then the assessee shall forfeit the facility to pay the duty in monthly instalments under sub-rule (1) for a period of two months, starting from the date of communication of the order passed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, in this regard or till such date on which all dues including interest thereof are paid, whichever is later, and during this period notwithstanding anything contained in sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall be required to pay excise duty for each consignment by debit to the account current and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow.]

(Above sub-rule(3) has been substituted & (3A) has been added vide NTF. NO. 17/2005-CE(N.T.), Dt. 31/03/2005)

[OLD-
(3) If the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with an interest at the rate of two per cent. per month or rupees one thousand per day, whichever is higher, for the period starting with the first day after due date till the date of actual payment of the outstanding amount:

Provided that the total amount of interest payable in terms of this sub-rule shall not exceed the amount of duty which has not been paid by due date:

Provided further that till such time the amount of duty outstanding and the interest payable thereon are not paid, it shall be deemed that the goods in question in respect of which the duty and interest are outstanding, have been cleared without payment of duty, and where such duty and interest are not paid within a period of one month from the due date, the consequences and the penalties as provided in these rules shall follow. [OLD -without payment of duty and the consequences and the penalties as provided in these rules shall follow. ]

(In second proviso of sub-rule (3), Bold words has been amended vide NTF. NO. 27/2003-CE(N.T.), DT. 01/04/2003)

Illustration 1.- X, an assessee, fails to pay excise duty of Rs. 31 lakhs payable on the goods cleared in February, by the 5th of March. X pays the amount on 10th of March. The default has continued for 5 days. The interest payable by X is computed as follows:-
 

The interest payable is the higher of the amounts (A) and (B).

Illustration 2.- Y, an assessee, was liable to pay an excise duty of Rs. 5 lakhs payable on the goods cleared in June. Y pays only Rs. 4 lakhs by the 5th of July. Thus Y has defaulted in respect of Rs. 1 lakh. Y pays the balance amount on 30th of July. The default is for 25 days. The interest payable by Y is computed as follows:-
 

The interest payable is the higher of the amounts (A) and (B).

Illustration 3.- C, an assessee availing the SSI exemption scheme, fails to pay excise duty of Rs. 10000 payable on the goods cleared in May, by the 15th of June. C pays the amount on 20th of August. The default is for 2 months and 5 days. The interest payable by C is computed as follows:-
 

The interest payable is the higher of the amounts (A) and (B) subject to a maximum of the amount of default = Rs. 10000.�; ]

(Sub-rule (3) has been substituted vide Ntf. No. 12/2003(NT)-CX, Dt. 01/03/2003)

[OLD -(3) If the assessee fails to pay the amount of duty by due date, he shall be liable to pay the outstanding amount alongwith interest at the rate specified by the Central Government vide notification under section 11 AB of the Act on the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount.]

(4) The provisions of section 11 of the Act shall be applicable for recovery of the duty as assessed under rule 6 and mentioned in the return filed under these rules, the interest under sub-rule (3) and the penalty under sub-rule 3(A) [OLD- and the interest under sub-rule (3) ] in the same manner as they are applicable for recovery of any duty or other sums payable to the Central Government.

(In above sub-rule (4) the words, brackets, figure and letter “and mentioned in the return filed under these rules, the interest under sub-rule (3) and the penalty under sub-rule 3(A)” has been substituted vide NTF. NO. 08/2015-CE (NT), DT. 01/03/2015)

Explanation.- For the purposes of this rule, the expressions ‘duty’ or ‘duty of excise’ shall also include the amount payable in terms of the CENVAT Credit Rules, 2004.

(Above Explanation has been inserted vide NTF. NO. 08/2007-CE(N.T.), DT. 01/03/2007)

(Sub-rule (4) has been substituted vide Ntf. No. 12/2003(NT)-CX, Dt. 01/03/2003)

[OLD -(4) If the assessee defaults,-
 

(i) in payment of any one instalment and the same is discharged beyond a period of thirty days from the date on which the instalment was due in a financial year, or

(ii) in payment of instalment by the due date for the third time in a financial year, whether in succession or otherwise,

then, the assessee shall forfeit the facility to pay the dues in instalments under this rule for a period of two months, starting from the date of communication of the order passed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, in this regard or till such date on which all dues are paid, whichever is later, and during this period the assessee shall be required to pay excise duty for each consignment by debit to the account current and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow.]

Rule 8A.

Manner of payment in respect of speci­fied goods on which excise duty has been im­posed with effect from 1st March, 2002. -

(1) Notwithstanding anything contained in rule 8, the duty on the goods, specified in the Annexure to this rule, removed from the factory or the warehouse during the period commencing on and from the 1st March, 2002 and ending with and including the 31st May, 2002, shall be paid by the 15th day of June, 2002.

Explanation. - For removal of doubts, it is hereby clarified that the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date.

(2) The duty of excise shall be deemed to have been paid for the purposes of these rules on the excisable goods removed in the manner provided under sub-rule (1) and the credit of such duty allowed, as provided by or under any rule.

(3) If the assesssee fails to pay the amount of duty by due date, he shall be liable to pay the outstanding amount along with interest at the rate specified by the Central Government vide notification issued under section 11AA  [OLD- section 11AB ] of the Act on the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount.

(In above sub-rule (3) the word, figures and letters"section 11AA" has been substituted vide NTF. NO. 08/2012-CE (NT), DT. 17/03/2012)

(4) If the assessee defaults in payment of duty by the 15th day of June 2002, then, the assessee shall forfeit the facility to pay the dues in instalments as provided under sub-rule (1) of rule 8 for the clearances made after the 1st day of June, 2002 for a period of two months, commencing on and from the date of communication of the order passed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, in this regard, or till such date on which the dues are paid, whichever is later, and during this period the assessee shall be required to pay excise duty for each consignment by debiting to the account current and in the event of any failure to do so, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules, shall follow.
 

(1) All goods specified at S. No. 9 to 50 of the Table to the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 10/2002-Central Excise, dated the 1st March, 2002 published in the Gazette of India vide number G.S.R. 131 (E), dated the 1st March, 2002, which were exempt from whole of the duty leviable thereon immediately prior to 1st March, 2002 and on which duty has become leviable with effect from 1st March, 2002, at the rate of 4% ad valorem, subject to the conditions specified in that notification or, as the case may be, at the rate of 16% ad valorem.

(2) Granite falling under heading No. 68.07 manufactured by units which would have been eligible for exemption from duty whether in whole or in part under notification No. 8/2001-Central Excise or No. 9/2001-Central Excise, dated the 1st March, 2001, as they existed before 1st March, 2002 and granite failling under heading No. 68.07 manufactured by units which would have been eligible for exemption whether in whole or in part if such exemption had not been withdrawn under Notification No. 8/2002-Central Excise or, as the case may be, under Notification No. 9/2002-Central Excise, both dated the 1st March, 2002.

(3) Woven fabrics of cotton, falling under Chapter 52, when subjected to any one or more of the following processes, namely :—
 

(a) flanellete raising;

(b) stentering;

(c) damping on grey and bleached sorts;

(d) back filling on grey and bleached sorts;

(e) singeing, that is to say, burning away of knots and loose ends in the fabrics;

(f) cropping or butta cutting;

(g) curing or heat setting;

(h) padding, that is to say, applying starch or fatty material on one or both sides of the fabric; or

(i) expanding,

if such fabrics are processed in a factory which does not have the facilities (including plant and equipment) for carrying out bleaching, dyeing or printing or any one or more of these processes with the aid of power or steam and such fabrics were exempt from whole of the duties leviable thereon under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), immediately prior to 1st March, 2002 and on which duties have be­come leviable with effect from 1st March, 2002 at the rate of 12% ad valorem.

(4) Woven fabrics of man-made fibres, falling under Chapter 54 or Chapter 55, when subjected to any one or more of the following processes, namely:—
 

(a) singeing, that is to say, burning away of knots and loose ends in the fabrics;

(b) padding, that is to say, application of natural starch to one or both sides of the fabrics;

(c) back filling, that is to say, application of starch to one side of the fabrics;

(d) cropping, that is to say, cutting away mechanically of loose ends from the fabrics; or

(e) the process of blowing (steam pressing) carried out on woven fabrics of acrylic fibre,

if such fabrics are processed in a factory which does not have the facilities (including plant and equipment) for carrying out bleaching, dyeing or printing or any one or more of these processes with the aid of power or steam, and such fabrics were exempt from whole of the duties leviable thereon under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), immediately prior to 1st March, 2002 and on which duties have be­come leaviable with effect from 1st March, 2002, at the rate of 12% ad valorem.

(Pl. see Cir. (F.No. B-10/1/2002- TRU), Dt. 7/3/2002 for rule 8 & 8A. )