DRAFT AMENDMENT TO CENTRAL EXCISE RULES, 2002
I. SCRUTINY OF RETURN:

Existing rule 12 and the proviso, may be renumbered as sub-rule (1).Thereafter sub-rules (2) and (3) may be inserted as below:

“(2) The proper officer may on the basis of information contained in the return filed by the assessee under sub-rule (1), and after such further enquiry as he may consider necessary, scrutinize the correctness of the duty assessed by the assessee on the goods removed, in the manner to be prescribed by Board.

(3) Every assessee shall make available to the proper officer all the documents and records for verification as and when required by such officer.

IIA. Amendment to sub-rules (2) and (3) of rule 22 of Central Excise Rules, 2002

“(2) Every assessee and, first stage and second stage dealer shall furnish to the officer empowered under sub-rule (1), a list in duplicate, of-

(i) all the records prepared and maintained for accounting of transactions in regard to receipt, purchase, manufacture, storage, sales or delivery of the goods including inputs and capital goods, as the case may be;

(ii) all the records prepared and maintained for accounting of transactions in regard to payment for input services and their receipt or procurement; and

(iii) all the financial records and statements (including trial balance or its equivalent).

IIB. To amend sub-rule (3) of rule 22 of Central Excise Rules, 2002 to replace the phrase “Every assessee” by the phrase “Every assessee and first stage and second stage dealer.”

IIC. To insert an Explanation in rule 22 of Central Excise Rules, 2002 as below:-

“Explanation.- For the purposes of this rule, “first stage dealer” and “second stage dealer” shall have the meanings assigned to them in CENVAT Credit Rules, 2004.”

III. Amendment to rule 8 of Central Excise Rules, 2002

The existing sub-rule (3) and the provisos and the illustrations shall be substituted as below and after such substituted sub-rule (3), the following sub-rule (3A) of rule 8 of Central Excise Rules, 2002 shall be inserted as follows:

“(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 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.

(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 rule 3(4) 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.”

Objections/comments should be sent to Neerav Kumar Mallick, Under Secretary (CX-6),CBEC, Department of Revenue, Ministry of Finance by post or by email to: neeravkr@nic.in by 21.3.2005.

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