Cir (F. No. B-10/1/2002- TRU), Dt. 7/3/2002.
To,

All Commissioners of Central Excise

Payment of excise duty on the goods on which duty was imposed in the Budget of 2002 -03 - regarding

As you are aware, excise duty at the rate of 4% has been imposed on certain goods in this year"s budget. This rate applies if the assessee does not opt for the CENVAT credit scheme. If the assessee opts for the CENVAT credit scheme, the rate of duty applicable is 16%.

2. In this context, the folowing decisions have been taken:

(a) All units, whether "SSI" or "non -SSI", manufacturing these goods and whether opting to pay duty of 4% or 16%, have been allowed to pay the excise duty in respect of clearances made during the months of march, April and May, 2002 by the 15th June 2002. In other words, those assessees are not required to pay the excise duty on a fortnightly basis as contemplated under rule 8 of the Central Excise Rules, 2002. Rule 8A has been inserted in the Central Excise Rules, 2002 to carry out the necessary amendment;

(b) The manufacturers that have now been allowed the special facility mentioned at (a) above have also been permitted to file a single RT-12 the return for the months of March, April and May, 2002 by 10th June, 2002, and

(c) The formal registration of the units manufacturing the goods on which duty at the rate of 4% / 16% has been imposed in the budget need not be insisted upon till 1st June, 2002.

3. It is requested that the above decisions may kindly be brought to the notice of all concerned, including the trade associations, immediately and the field officers duly instructed to comply with them.

4. Copy of amendment in Central Excise Rules, 2002 will follow.

Sd/-
(T.R.Rustagi)
Joint Secretary to the Government of India

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