Circular No. 96/7/95-CX dated 13/2/95

Subject: Instructions relating to issuance of invoice(s) under Rule 57G of Central Excise Rules

Rule 57G of Central Excise Rules deals with the accounting procedure in the persons issuing invoices under Rule 57G. It is necessary that transaction relating to goods on which Modvat Credit is to be availed of are smooth carried out, however, the following basic parameters must be kept in view.

a) Duplicate copy of an invoice, whether under Rule 52A or under Rule 57G, must always accompany the goods; and

b) Goods should be delivered only at the place at destination shown. In such invoice.

c) Serial Nos. as well as the description Original/Duplicate/Triplicate/Quadruplicate should be pre-printed except in the case of computer generated invoice.

d) Only duplicate copy of invoice issued under Rule 52A or Rule 57G will be used as cover for transport document and for the purpose of Modvat.

The following instructions are issued relating to invoices under Rule 57G.

1. Every person who intends to issue an invoice(s) under Rule 57G shall submit an applications in the proforma as at Annexure-l for the purpose of registration with the jurisdictional Range Superintendent of Central Excise.

2. The jurisdictional Range Superintendent after scrutiny of the application for registration shall grant a certificate of registration in the prescribed proforma as at Annexure II.

3. The registered person will issue invoices under Rule 57G in respect of only those commodities for which declaration has been made in his application.

4. Any change in godown or the office premises used or proposed to be used for storage has to be intimated and registered before the new premises can be so used.

5. A godown can be either owned by the registered person, rented wholly or partially, leased from a private godown owner or public sector godown. There should, however, be a legal arrangement so as to enable verification of the premises as well as of the goods stored therein, by the Central Excise Officers.

6. RG 23D registers should be maintained god own-wise if a registered person has more than one godown. Where a registered person has more than one godown in the same town, he will register himself with the Superintendent having jurisdiction over his business premises but shall give details of all his godowns. In the case of multi-collectorate towns such as Bombay and Calcutta he is also required to register himself with the Collectorates in case he has godown in more than one Collectorate.

7. Only one invoice book will be allowed to be used against one registration certificate.

8. In respect of liquid and gaseous products transported in tankers, the condition of godown may not be insisted upon, provided these goods are delivered to be buyers from the same tanker in which they have been received.

9. There are two situations relating to passing of Modvat Credit by a registered person. A registered person receives a consignment under Rule 52-A invoice from the manufacturer. He then issues invoices under Rule 57-G. In the second situation a registered person say "X" receives a consignment from another registered person say "Y" (or from any other person registered under Rule 174) on the strength of the invoice under Rule 57-G issued by registered person "X". This registered person "Y" then further issues invoices under Rule 57-G and so on.

(a) Whenever a registered person receives a consignment under Rule 52A invoice or 57G invoice and in respect of the same he propose to issue either one or more modvatable invoices, he shall keep complete account of each such consignment and all transactions relating thereto in KG 23D register.

(b) In respect of any consignment part of which is sold under a modvatable invoice and the other part under the cover of non-modvatable invoice, then the details of sales under non-modvatable invoices have also to be entered in the prescribed register RG 23D. The non-modvatable invoices are not required to be issued in the prescribed proforma,

(c) A registered person need not enter into RG 23D register details of those consignment received under Rule 52A invoice or 57G invoice for which he does not propose to issue modvatable invoices.

10. At the end of each month, a registered person is required to submit within 7 days of the succeeding month the following documents to be Range Superintendent.

(a) A photocopy of the RG 23D entries for that month.

(b) Triplicate copies of all the modvatable invoices issued under Rules 57G.

(c) Triplicate copes of the non-modvatable invoices issued by the registered person in respect of their consignments which have been split for sale to modvatable users and non-modvatable users.

(d) The duplicate copy of the manufacturer"s invoice issued under Rule 52A if the registered person has received the consignment from the manufacturer. Otherwise, the duplicate copy of the registered person"s invoice on the strength of which the goods have been received and entries have been made in the RG 23D register. In other words the duplicate copy indicating receipt of goods from the manufacturer or the registered person has to be submitted. In no circumstances photocopy shall he accepted.

11. The Range Superintendent shall verify as follows ;

(a) Verification of triplicate copies of the invoices issued under Rule 57G with the duplicate copy of the invoice under 52A in those cases where the goods have been received by the registered person from the manufacturer.

(b) The verification of the triplicate copies of all the invoices issued by the registered person say "X" under Rule 57G indicating sale with the duplicate copy of the invoice of another registered person say T" indicating the receipt of goods.

(c) The Range Superintendent, shall, simultaneously also verify the details with the corresponding entries in RG 23D.

12. The Range Superintendent will deface the duplicate copy of the manufacturer"s invoice or the registered person"s invoice indicating the receipt of the goods with the words MODVAT ALLOWED - INVOICE NOT TO BE USED AGAIN"". However, when the entire quantity in the receipt invoice has not been sold the Range Superintendent will endorse on the back of the invoice details relating to total quantity received, quantity issued, total amount of duty available for MODVAT, amount of duty for which modvatable invoices issued have been issued, balance quantity and the balance amount of duty available for issuing modvatable invoices. The defacement will take place in the succeeding month in the event of completion of sale for that particular consignment.

TRANSIT SALE

1. A registered person places an order on a manufacturer for supply and delivery of goods directly to a consumer and the goods are accordingly transported from the manufacturer"s premises to the user"s premises without being brought to the registered person"s premises. In such a situation manufacturer will issue an invoice under Rule 52A. This invoice under Rule 52A will contain, in addition to the prescribed details including the consignee"s name and address, mentioned therein, the registered person"s name and address, on account of whose instructions the goods have been despatched. The consignee in this case will be the end user. In such a situation the registered person"s invoice is not required for availment of Modvat credit. The duplicate copy of the manufacturer"s invoice under Rule 52A will serve as cover for transport and for availment of MODVAT by the end user.

2. In case the. goods have been consigned directly by "the manufacturer to the consignee/end user under the instructions of the registered person and the end user refuses to receive the goods, then the registered person could approach the Range Superintendent of the original consignee. The Range Superintendent on receipt of request from the registered person can divert the consignment to a new destination as requested by the registered person. The duplicate and triplicate copy of the manufacturer"s invoice will be endorsed by the Range Superintendent showing new destination.

3. A registered person, say in Bombay, places an order on a manufacturer, say in Madras for supply of goods at Ahmedabad without being definite in advance as to who his buyer in or around Ahmedabad would be. The order has been placed in anticipation of the demand. The goods are delivered and stored in a godown. The registered person would be required to register himself at Ahmedabad and issue invoices under Rule 57G.

PROVISIONS RELATING TO IMPORTERS

1. An importer who intends to issue an invoice under Rule 57G will also have to obtain Registration under Rule 174 of Central Excise Rules. He will make an application for registration with the Range Superintendent having jurisdiction over his office premises.

2. The triplicate copy of the bill of entry will be used for the purpose of availing MODVAT by the user.

3. Where an entire consignment is sold out from the docks/bonded warehouse, the triplicate copy of the Bill of entry, duly signed and stamped by a proper officer of customs can be used for the purpose of availing MODVAT by the user. In such situation, the Preventive Officer giving an out of charge order will also endorse/attest the duplicate and triplicate copies of Bill of Entry giving therein details of the consignee. The triplicate copy of Bill of Entry will also serve as the covering transport document.

4. If an imported consignment is being split for supplies to more than one buyer and the goods are being removed from the docks or from the bonded warehouse, the importer can issue invoices giving thereon details of the relevant Bill of Entry. The officer giving out-of-charge order will endorse the triplicate copy of Bill of Entry with the names and .addresses of the consignees, the split quantities, value and duty on each such consignment and details of invoices. Duplicate copy of invoice issued by importer under Rule 57G duly endorsed by Preventive Officer will then be a MODVAT document as also a transport document.

5. In respect of such split consignments as well as the consignments brought to his godown, he will as usual maintain RG 23D register and issue invoices.

6. The importer in this case will also be required to submit to the Range Superintendent a photocopy of RG 23D register, triplicate copy of Bill of Entry indicating receipt of goods and the triplicate copies of all invoices issued under Rule 57G during the month within 10 days of the succeeding month.

7. The Range Superintendent shall verify all the triplicate copies of the invoices issued under Rule 57G by importer with the triplicate copy of the Bill of Entry indicating receipt of goods. He will deface the triplicate copy of the Bill of Entry with the words ""NOT TO BE USED - MODVAT ALLOWED. However, when the entire consignment received against a particular Bill of Entry has not been sold, the Range Superintendent will endorse on the reverse of the Bill of Entry the details relating to total quantity received, quantity issued, total amount of duty available"" for the purpose of MODVAT, amount of duty for which modvatable invoices issued, amount of duty for which non- modvatable invoices issued and the balance amount of duty carried forward for the next month. When the Bill of Entry is fully utilised in the succeeding months, it will be defaced as above.

Sd/-
(I.P. Lal)
Deputy Secretary to the Government of India

F.No.267/9/95-Cx-8

Annexure I

Form R-l

Application for Registration for issuance of invoices under Rule 57G

To
The Superintendent of Central Excise
______________________

Sir,

I/We ___________________ Son/Daughters) of (rule) residing at ________________ hereby request that I/We _______________ may be issued a registration certificate winder rule 174 for the purpose indicated in the schedule. Other details required are also furnished in tin" schedule.

2. I/We ________________ agree to abide by all the provisions of Central Excise Rules, 1944 and any orders issued thereunder.

3. I/We _____________________ declare that to the best of my/our knowledge and belief the information furnished herein is true and complete.

Place:

Date:

Signature of the applicant
(Signatures)

tear here. -------------------------------------------------------------------------------

ACKNOWLEDGEMENT

Received an application for Registration from Ms./Mr./Smt. ___________________
Son/Daughter of _________________ for registration under rule 174.

Date:

Signature and Stamp of Range Superintendent
receiving the application.

Schedule

	1. Name and address of the persons applying for the registration : 

	2. Details of the office premises and godowns : 

	(In case of multi-collectorate places like Bombay and Calcutta, registration
	has to be with the collectorates in cases of more than one godown situated in 
	different collectorates). 

	3. Details of the company/firm. 

(a) Name and address :
(b) Whether proprietory/partnership/Ltd. Company.
(c) Income Tax No./Nos.
(d) Sales Tax No./Nos.
(e) Banker(s) name and address :
(Details of Account No.)

	4. Details in respect of each of the proprietors/partners/Directors of the 
	company/firm including: 

(a) Name (s)
(b) Address (es)
(i) Official
(ii) Residential
(Telephone and FAX No. may also be given)
(c) Income Tax No./Nos.
(d) Sale Tax No. /No-.
(e) Banker(s) name and address :
(Details of Account No.)

	5. SI. No. 	Description of Excisable 	Tariff 			Remarks 
			goods for which 		Classification 
			invoice under Rule 57G 
			is to be issued. 

									Annexure II 
									Original (for applicant)
									Duplicate (for Division) 
									Triplicate (for Range) 


					FORM R-2

				Registration Certificate 

	Sr. No. 							Range: 
									Division:
									Collectorate: 


	Registration Certificate to person issuing invoice under Rule 57G
					(Sec Rule 174) 

	1. _________ of _________ having undertaken to comply with the conditions 
	prescribed in the Central Excise Rules, 1944 and any orders issued thereunder 
	is hereby certified to have been registered with the Central Excise Department 
	to undertake activities as detailed in the Schedule. 

	2. Certificate is valid only for the premises and purposes specified in the 
	Schedule and for no other purpose and premises. 

	3. Registration certificate is not transferable. 

	4. No corrections in the certificate will be valid unless ordered and attested by 
	a Superintendent of Central Excise. 

	5. This certificate shall remain valid till the holder carries on the activity for 
	which a certificate has been issued or surrenders the certificate whichever is earlier. 

	6. The grant of this certificate shall be without prejudice to the rights of any 
	other person over the registered premises or purpose to which such person may be 
	lawfully entitled. 

					Schedule 

	1. Name and address of the persons to whom the registration 
	certificate has been granted : 

	2. Address and specification of he business/office and godown office 
	and godown premises 

	3. SI. Description of excisable goods for which Remarks invoice under Rule 57G is 
	to be issued 

_____________________________________________________________________________________ 
Place : 	Signature of the Registering Authority 
Date : 		(Superintendent Central Excise) 
_____________________________________________________________________________________ 

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