Liquified gas in tanker lorries - No removal without payment of duty

Circular No. 21/21/94-CX.6 dated 11/2/94
Subject: Simplification of procedure for payment of excise duty and distribution of liquid gas.

I am directed to refer to your letter F.No. VII/Ch.28(30) 10/93/12393 dated 26.10.1993 on the above subject.

2. The matter has been examined by the Board. It is observed that Rule 9 and 49 and also Rule 173G of Central Excise Rules, 1944 pre-suppose payment of duty for each consignment by debit to account-current. It has, therefore, been decided that clearances of liquified gas in tanker lorries should not be allowed without payment of duty. Such permission granted, if any, should be immediately withdrawn. The suppliers of such gases may be directed to effect clearances against orders from buyers indicating the specified quantities required by them so that gate passes can be issued and duties paid in each case before removal of gas.

3. A copy of the letter dated 10.3.89 is also enclosed for information.

Sd/-
(Himanshu Gupta)
Under Secretary

Government of India
Central Board of Excise and Customs
New Delhi, dated the 10th March, 1994

To __________ Subject: Central Excise - Removal of Liquid Oxygen and Liquid Nitrogen Gases etc. from factory without payment of duty under passout system regarding. I am directed to refer to your letter F.No. V-Ch.28 (80) 1/89/2044 the 6th Feb. 1989, on the above subject relating to M/s. Hindustan Gas an and M/s. Industrial Oxygen Co. Ltd. Patalganga.

2. The matter has been examined by the Board and it has been decided that in such cases clearances of liquified gases in tanker lorries should not be allowed without payment of duty. Such permission granted, if any, should be immediately withdrawn. The suppliers of such gases may be directed to effect clearances against orders from buyers indicating the specified quantities required by them so that gate passes can be issued and duties paid in each cases before removal of the gases.

Sd/-
(A.K.Prasad)
Undersecretary Central Board of Excise and Customs

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