Circular No. 29/29/94-CX. dated 31/2/94
Subject: Use of Invoice w.e.f. 1.4.1994
I am directed to invite your attention to the provisions of Rules 52A and 173C of
Central Excise Rules, 1944, as introduced by Notification No. 4/94-CE(NT) dated 1.3.94. These
provisions come into force w.e.f. 1st April, 1994.
Though Rule 52A provides for printing of running Sl. No. on each invoice from 1st
January of each year, for the current year serial numbering of the invoice shall commence
from 1st April, 1994.
Before invoice books are taken into use, the Sl. nos. of the invoices in the books
shall be communicated to the jurisdictional Assistant Collector of Central Excise. It is not
necessary that Sl. no. of each invoice is intimated to the Assistant Collector of Central
Excise before being issued. The Collector is authorised to permit use of more than one invoice
book of each type at any one time under sub rule 6 of Rule 52A, as long as the Serial Numbers
are different.
As per sub rule 7 of Rule 52A, authentication of invoice book is to be done by the
owner or working partner or Managing-Director, Company Secretary as the case may be. Rule 3 of
the Central Excise Rules, 1944, provides that agent of owner of goods shall be deemed owner of
such goods. As such in the case of a proprietary or partnership concern, an owner or working
partner or a employee, holding power of attorney for pre-authentication of invoices, can
authenticate the invoices. In case of a company the Managing Director, Company Secretary, or
an Officer of the Company who is so authorised by the Board of Directors can authenticate the
invoices.
The assessee"s invoice will now be used as a transport document as well as the basis
for determining the assessable value under Section 4 of the Central Excises and Salt Act, 1944
in lieu of Gate Pass and the Price List. Multiplicity of documents required for Central Excise
purposes is being reduced.
In addition to the information normally included in the invoice by the assessee for his
own purpose, he will be required to incorporate the information in terms as in Annexure A
attached.
Assessee shall file the declaration with the Range Superintendent in proforma at
Annexure I or II in triplicate at the beginning of each financial year and thereafter, as and
when there is a change in the value or marketing pattern. The Range Superintendent shall
acknowledge the receipt of the declaration. The Range Superintendent will check the
declaration with the previous declaration and other relevant material and submit all the copies of the
declaration to the Divisional Assistant Collector along with his verification report within 15
days.
The Divisional Assistant Collector will examine the declaration and endorse his
acceptance on it. He will send one copy of the declaration to the Range Superintendent
another copy to the Valuation Cell of the Collectorate Office and retain the third copy with
him.
Annexure III will be filed in quadruplicate with the Range Superintendent who after
verification, will submit all the copies of the declaration to the Divisional Assistant
Collector within 10 days. Divisional Assistant Collector will forward two copies of the
declaration to the focal Assistant Collector incharge of the factory nearest to the head
office of the assessee. After conducting such enquiries as necessary, the focal Assistant
Collector will accept the value as declare in the annexure. He will, thereafter, retain one
copy of the declaration with him and return the other copy duly endorsed to the Divisional
Assistant Collector in charge of the declarant factory. On receipt of the accepted declaration,
the Divisional Assistant Collector will make an endorsement on other copies of the declaration,
send one copy to the Range Superintendent and another to the Valuation Cell of the
Collectorates.
In case the information contained in the declaration is not found to be correct, the
Divisional Assistant Collector may cause necessary enquiry to be conducted as contemplated in
Sub Rule 3 of Rule 173C. In case, the declared value is not acceptable he should issue an
appellable order after observing the principles of natural justice.
The basis of assessment is the value as declared in the invoice. While
assess in the RT12
returns, the Range Superintendent will, therefore, check whether the assessable value has been
correctly determined. In case he finds that the assessable value as declared in the invoice is
not prima facie acceptable, he should refer the case to the Divisional Assistant Collector who
will cause enquiry into the correctness of the value declared as contemplated in Sub Rule 3 of
Rule 173C. On completion of such enquiry the Assistant Collector of the Division
will issue an
appellable order and send a copy to the Range Superintendent who will then finalise the
assessment on the RT 12 return. The Assistant Collector, in such situations, can also resort to
provisional assessment, wherever necessary. They also have the right as at present, to request
for provisional assessment to be ordered by the Assistant Collector, situations provided for in
the Act and the Rules for this purpose.
The unnumbered draft Circular, used on 18th instant during the the Principal Collector"
s/Collectors meeting at at New Delhi maybe treated as a working paper only, and not as
instructions.
Instructions and Circulars which have been issued earlier but inconsistent with
aforesaid instructions shall be deemed to have superseded.
Suitable trade notices may be issued for the information of the trade.
Sd/-
(I.P.Lal)
Deputy Secretary
Central Board of Excise
Annexure "A"
Particulars Required to be Incorporated in the Invoice
(i) Full postal address of Range and Division :
(ii) Name, Address and Code Number/Registration :
Number of factory/warehouse
(iii) Name and Address of consignee :
(iv) Description and Specification of goods :
(v) Number and Description of Packages :
(vi) Total quantity of goods (net) :
(vii) Total price of goods :
(viii) Details of deductions/additions made to arrive at :
value under section 4 of the Act
(ix) Assessable value/Tariff value per unit :
(x) Total assessable value/tariff value :
(xi) Tariff heading Number/Exemption Notification No. :
(xii) Rate of duty :
(xiii) Total duty paid (both in words and figures) :
(xiv) Serial Number of debit entry in PLA/RG-23 :
(xv) Date and time of issue of invoice :
(xvi) Date and time of removal of goods :
(xvii) Mode of transport and motor vehicle registration :
number
(xviii) appropriate certificate as below :-
Certified that the particulars given above are true and correct and the amount indicated
represents the price actually charged and that there is no flow additional consideration
directly or indirectly from the buyer.
OR
Certified that the particulars given above are true and correct and the amount indicated is
provisional as additional consideration will be received from the buyer on account
of....................
Note: (i) Value indicated against S. No. (ix) and (x) shall correspond to the assessable
value determined in invoice or as indicated in the declaration filed or tariff value as the
case may be.
(ii) The rate of duty and the amount of duty given against S. No. (xii) and
(xiii) should
be indicated separately for each type of duties, such as basic duty, additional duty,
cess,
etc.
Annexure-I
Proforma for declaring Assessable Value of excisable goods sold to or through related
persons as defined in Section 4 of the Act (173 C)
Name and Address of Factory :
Central Excise Registration Number:
| Excisable goods | Tariff classification | Particulars of buyers etc. "R" |
| | | Class of related persons | Area or market for which authorised to sell such goods | Area or Market Total No. of related person |
| (1) | (2) | (3) | (4) | (5) |
| Price at which such goods are ordinarily sold in the course of wholesale trade | Break up for difference in Col. 6/8 and Col. 13 | Value claimed under Section 4 | Remarks |
| By the related persons to dealers (not being related person) | By the related persons to related retail dealers, if any | |
| Rs. | Unit of sale | Rs. | Unit of sale | Trade discount | Cost of packing and its nature | Other expences | |
| (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) |
I/We certify that the particulars herein furnished are true and completed to
the best of my/our knowledge.
Place ______________
Date________________
Signature of assessee/manufacture/
Warehouse Keepers
Note:
- Declaration should be filed with Range Superintendent (in triplicate).
- A copy of the agreement, if any, with related person should be annexed.
- In Col. 3 indicate whether the related person is holding comp./
subsidiary/relatives (specify relationship)/distributor/sub-distributor.
- Declaration in this format shall be filed whenever there is a change in value.
Annexure-ll
Proforma for Declaring Assessable Value of Excisable goods manufactured by an
Assessee who
- Uses such goods for manufacture or production of other goods in his factory; or
- Removes such goods for free Distribution; or
- Removes such goods in any other manner
which does not involve sale (Second Proviso to Rule (173-C)
Range:
Division:
Name and Address of Factory
Central Excise Registration Number
1. In case of stock transfer
| Excisable goods | sale price at depot Rs. per unit | Nature and amount of deduction Claimed from depot sale price per unit (Rs. per unit) | value declared under Section 4 | Remarks |
| Description | Tariff Classification |
| (1) | (2) | (3) | (4) | (5) | (6) |
| | | | | | |
2. In other cases :-
(a) If particulars of comparable goods are known
| Excisable goods | Comparable
goods, if known to the assessee | Difference, if any in material characteristics of goods under assessment and comparable goods | Value declared under Section 4 | Remarks |
| Description | Tariff Classification | Description | Tariff Classification | Assessble value |
| Rs. | Value |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
(b) If particulars of comparable goods are not known:
| Excisable goods | Cost of production or manufacture (supported by detailed
calculation, on a separate sheet how the cost has been worked out | Profits that would have been normally earned by the assessee on sale of such goods on the basis of gross profit during previous financial year | Value declared under Section 4 | Remarks |
| description | Tariff Classification |
| Rs. | Unit |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) |
Place ___________________
Date_____________________
Signature of assessee/manufacturer/
warehouse keeper
Notes:
- Declaration should be filed with the Range Superintendent in triplicate.
- Information about such of comparable goods need be given
(a) as are produced by the same type of units, viz., large medium or small sector units.
(b) As have more or Jess the same retail price as the goods to I valued.
(C) about assessable value of which there is no dispute.
- Declaration in the format shall be filed as and when there is change in value.
Annexure-III
Proforma for Declaring assessable value of excisable goods manufactured by an Assessee having factories located in different collectorates/division
(Second proviso to Rule 173-c)
Range:
Division :
Name and Address of Factory
Central Excise Registration Number
Name and Address of Assessee"s Factory Located
Nearest to his head office
Full postal address of Range and Division Incharge of :
assessee"s factory nearest to his head office
| Description of excisable goods | Tariff classification | Price at which such goods are ordinarily sold in the course of wholesale trade | Deductions claimed from such price | Value under Section 4 | Remarks |
| (1) | (2) | (3) | (4) | (5) | (6) |
|
Place _________________
Date __________________
Signature of assessee/manufacturer/
Warehouse Keeper
Note :- If the assessee is covered by clause (i) to (iv) of the second proviso to rule 173C he will also file the declaration in proforma prescribed at
Annexure I or II, as the case may be.
12:42 PM 11/9/00
- Declaration is to be filed in quadruplicate in the office of Range Superintendent.
- Fresh declaration shall be filed as and when there is change in value/marketing pattern.
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