RULE 173GG. Special procedure for monthly payment of duty by certain manufacturers

– (1) Notwithstanding anything contained in Rule 173G in regard to payment of duty on each consignment, a manufacturer availing of the exemption under a notification based on value of clearances in a financial year may discharge his duty liability on a monthly basis by debiting the account-current maintained under Rule 173G or account in Form RG 23A Part-II prescribed in Rule 57G or account in Form RG 23C Part – II prescribed in Rule 57T or all the said accounts, as the case may be, in the manner specified below.

(a) the manufacturer shall inform the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, in writing in advance, as soon as may be, the date from which he wishes to avail of the facility of monthly payment of duty under this rule;

(b) 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 Form RG 1 with the modification in the said Form RG 1 that for the words “On payment of duty”, the words “Amount of duty payable” had been substituted;

(c) the manufacturer shall indicate on each invoice, issued under Rule 52A the amount of duty payable;

(d) at the end of each calender month, the manufacturer shall determine the total amount of excise duty payable on the excisable goods removed during the calendar month, and he shall discharge the total duty liability so payable by making debit entry in the account current or account in Form RG 23A Part-II or Form RG 23C Part-II or all the said accounts, as the case may be;

(e) the duty liability for a calendar month shall be discharged within fifteen days of the succeeding calendar month.

(2) The duty of excise shall be deemed to have been paid on excisable goods removed in the manner prescribed under sub-rule (1) for the purposes of Rules 57A, 57B and 57Q.

(3)If the manufacturer fails to pay the amount of duty payables for a calendar month by the fifteenth of the succeeding calendar month, he shall be liable to pay the outstanding amount along with interest at the rate of twenty four per cent annum on the outstanding amount, for the period starting with the 16th day of the succeeding month till the date of actual payment of the outstanding amount together with a penalty of five hundred rupees per day for the aforesaid period:

Provided the total amount of duty payable for the calendar month, interest and penalty shall not exceed the value of clearances during that calendar month.

(4) If the manufacturer fails to discharge the duty liability within the stipulated period for the second time in a financial year, he shall not be allowed to pay excise duty on monthly basis under this rule for the remaining part of the financial year, by an order to be passed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise recording therein the particulars of such failures.