RULE 49. Payment of duty on fortnightly basis on removal of goods from the factory premises or from an approved place of removal

(1) (a) Every manufacturer, other than a manufacturer who is availing of the exemption under a notification based on value of clearances in a financial year, shall discharge his duty liability in respect of clearances of excisable goods from the place or premises specified under rule 9 or from a store room or other place of storage approved by the Commissioner under rule 47 made: -

(i) during the first fortnight of the month, by the twentieth day of that month;

(ii) during the second fortnight of the month, other than the month of March, by the fifth day of the succeeding month; and

(iii) during the second fortnight of March, by the 31st day of the said March.

(Above sub-clause (iii)Amended vide Ntf. No. 10/2001-CE(NT) dated 14/03/2001)

(I) the manufacturer shall pay, by the 31st day of March, a sum equal to the aggregate of

(A) the amount of duty payable on actual clearances made up to the twenty fifth day of March; and 9rii)1

(B) an amount calculated, for the remaining six days of March, pro rata of the actual duty payable under (A) above 1911

(II) Where the payment made in the manner specified in sub-clause (I) above, -

(A) is less than the actual duty liability for the second fortnight of March, the manufacturer shall pay the balance amount of duty by the twentieth day of April of that year;

(B) is more than the actual duty liability for the second fortnight of March, the excess amount may be adjusted against the duty liability for the first fortnight of the month of April of that year and where such adjustment is not possible for any reason, against the duty liability for any subsequent fortnight.

Illustration I. A manufacturer clears goods worth Rs. 90 lakhs during the period from 16-3-2001 to 25-3-2001 and goods worth Rs. 60 lakhs during the period from 26-3-2001 to 31-3-2001. Assuming that the rate of duty is 16% advalorem, the manufacturer shall pay a sum of Rs.14.4lakhs plus Rs. 8.64lakhs (90/10) x 6 x 0.16 by 31-3-2001. The manufacturer shall pay the balance of duty liability of Rs. 0.96 lakhs (Rs. 24 lathes minus Rs. 23.04 lakhs) by 20-4-2001.

Illustration II. A manufacturer clears goods worth Rs. 90 lakhs during the period from 16-3-2001 to 25-3-2001 and goods worth Rs. 50 lakhs during the period from 26-3-2001 to 31-3-2001. Assuming that the rate of duty is 16% advalorem, the manufacturer shall pay a sum of Rs. 14.4lakhs plus Rs. 8.64lakhs (90/10) x 6 xO.16 by 31-3-2001. The manufacturer is eligible to utilise the excess payment of Rs. O.64lakhs as adjustment against the duty liability for the first fortnight of April or any subsequent fortnight.

(a) Every manufacturer availing of the exemption under a notification based on the value of clearances in a financial year shall discharge his duty liability in respect of clearances made during a calendar month, by the fifteenth day of the succeeding month.

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

(b) The manufacturer shall discharge his duty liability by debiting account current or utilising CENVAT credit in the following manner, namely: -

(i) the manufacturer shall assess the duty due on the excisable goods intended to be removed, for each consignment and shall enter the particulars of such consignments in daily stock account maintained under rule 53;

(ii) the manufacturer shall indicate on each gate pass or invoice, is- sued under rule 52 or 52A, as the case may be, the amount of duty payable;

(iii) at the end of each fortnight, the manufacturer shall determine the total amount of excise duty payable on the excisable goods re- moved during the fortnight, and he shall discharge the total duty liability so payable by making debit entry in the account current or by utilising CENV AT credit.

(c) The duty of excise shall be deemed to have been paid on excisable goods for the purpose of these rules, and the credit of such duty, as may be pre- scribed under any rule, will be permissible.

(d) If the manufacturer fails to pay the amount of duty payable by the due date, he shall be liable to pay the outstanding amount along with interest at the rate of twenty-four per cent per annum 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.

(e) If the manufacturer defaults on account of –

(i) full payment of anyone installment is discharged beyond a period of thirty days from the date on which the installment was due in a financial year, or

(ii) the due date Oil which full payment of installments is to be made is violated for the third time in a financial year, whether in succession or otherwise, then the manufacturer shall forfeit the facility to pay the dues in installments under this sub-rule for a period of two months, starting from the date of communication of an order passed by the proper officer in this regard or till such date on which all the dues are paid, whichever is later and during this period the manufacturer shall be required to pay excise duty for each consignment by debit to the account current referred to in clause (b) and in the event of any failure, it will be deemed as if such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow.

(Above sub-clause (ii) amended vide Ntf. No. 1/2001-Central Excise (N.T), dated 11/01/2001)

(1A) The manufacturer shall, on demand, pay the duty leviable on any goods which are not accounted for in the manner specifically provided in these rules, or which are not shown-to the satisfaction of the proper officer to have been lost or destroyed by natural causes or by unavoidable accident during handling or storage in such store-room or other approved premises:

Provided that the proper officer may not demand duty due on any goods claimed by the manufacturer as unfit for consumption or for marketing subject to such conditions as may be imposed by the Commissioner by order in writing.

(Above sub-rule 1A has been inserted vide Ntf. No. 42/2000-Central Excise (N.T), dated 5/06/2000)

(2) Notwithstanding anything contained in sub-rule (1), excisable goods made in a factory to which provisions of Chapter VII of these rules have been extended by the Central Government by notification in the Official Gazette may be removed from the factory in which they are made to any warehouse registered under rule 140 for the storage of such goods and situated outside the registered premises of the factory and subject to such exemptions, limitations and conditions as may, from time to time, be specified in this behalf by the Central Government.

(3) Notwithstanding anything contained in sub-rule (1), the Central Government may, under circumstances of exceptional nature, allow, by notification in the Official Gazette, any excisable goods to be removed from the factory in which they are produced without payment of, or only on part payment of, duty leviable thereon subject to such conditions and limitations (including payment of interest on the balance amount of duty) as may, from time to time, be specified by the Central Government. The manufacturer of such excisable goods shall execute a bond in the proper Form with such surety or security as the Commissioner may approve.

Explanation. -For the purposes of this rule, excisable goods made in a factory and consumed or utilised -

(i) as such or after subjection to any process or processes; or (ii) for the manufacture of any other commodity, whether in a continuous process or otherwise, in such factory or place or premises specified under rule 9 or store-room or other place of storage approved by the Commissioner under rule 47, shall be deemed to have been issued out of, or removed from such factory, place, premises, store-room or other place of storage, as the case may be, immediately before such consumption or utilisation.