DETAILED CONTENTS

INTRODUCTORY BACKGROUND
1. What is Central Excise Duty 1
2. Evolution of Central Excise 1
3. Growth of Central Excise Revenue. 2
4. Procedures for collection of duties of Excise. 2
5. Central Board of Excise and Customs (CBEC or Board) 3
6. Clearance Based Control 3
7. Compounded levy system. 4
8. Departmentalisation of Revenue Accounts. 4
9. Handbook of Self-Removal Procedure 4
10. Central Excise Tariff Act, 1985 4
11. Implementation of (8-Digit Clossification Code)- Clarification 5
11. MODVAT Scheme. 6
12. Type of Excise Duties. 6
13. Amendments. 8
REGISTERED DEALERS UNDER CENTRAL EXCISE LAW
1. "First stage Dealer"-"second stage Dealer" 1
2. Invoices issued 1
3. The invoices issued by the "first Stage Dealers" and "Second Stage
Dealers" 1
4. Procedure for registration of Dealer 1
5. Visit of Excise Officers to Dealer's premises 2
6. Problems faced in availing Modvat on Bill of Entry in the name of
Registered Office/Head Office but credit to be availed by the factory 2
7. Invoices 3
8. Procedure to be followed by Registered Dealers for Decoiling from coils
into sheets 4
9. Procedure to be followed by Registered dealers 4
10. First Stage and Second Stage dealers 4
REGISTRATION
1. Registration required 1
2. Registration exempted 2
3. Statutory provisions for 'registration' 2
4. Licensing 2
5. New Registration Rules 2
6. Separate registration-Separate premises 20
7. Exemption from Registration 21
8. Application for Registration. 22
9. The application for registration 22
10.Procedure for issue of Registration Certificate. 22
11.Issue of Registration Certificate. 23
12.Period of Validity of Registration. 23
13.Surrender, Cancellation, Suspension or Re-vocation of Registration 23
14.Lost Registration Certificates. 24
15.Central Excise 24
16.Central Excise—Conversion of Registration Number of existing registrants
into PAN-based Registration Number 24
17 Licensing of owners of brand names 27

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viii Cen-Cus Guide to All Cen. Ex. Procedures SRP
18. 'Basic Manual' of instructions of the deptt. 27
19. Registration of First Stage and Second Stage Dealers 29
20. Option for registration u/r 174 29
21. Introduction 30
22. Introduction of New Excise Control Code (ECC) Number based on Permanent
Account Number (PAN) allotted by the Income-tax Department 30
23. Components of New ECC Number 35
24. Procedure for allotment of New ECC 36
25. Central Excise assessees and dealers registered under the Central Excise
Rules 38
26. Central Excise Registration-new instructions 38
27. Allotment of 15 digit PAN based Registration Numbers 46
28. Manufacturers of hand rolled cheroot of tobacco 47
29. Registration 48
30. Central Excise Registration—Notifications No. 49/2003-CE and No. 50/2003-
CE, both dated 10.06.2003 48
31. Registration Procedure for Powerloom Weavers/ Hand Processors/ Dealers
of Yarns and Fabrics/ Manufacturers of Ready Made Garments 49

PART I
EXCISABILITY

Chapter 1
CONCEPT OF “MANUFACTURE” OF EXCISABLE GOODS
1. Manufacture' means making of a product commercially different 1.2
2. It is an inclusive definition and not an exhaustive one. Clause 1.2
3. Clause (ii) of the definition of 'manufacture' 1.2
4. Definition of manufacturer1.3
5. The duties of excise are therefore leviable on all excisable goods 1.4
6. Basically Excise duty is on "goods 1.4
7. Concept of “Process” and "Manufacture" 1.4
8. Distinction between ‘Manufacture' and 'Production' 1.6
9. Distinction between Intermediate product and end-product 1.7
10. Duty liability on intermediate products 1.8
11. Classification of a manufactured product is determined by the character of
goods at the final stage of production and not the intermediate stage,
unless specified to the contrary in the statute 1.9
12. Intermediate Products 1.9
13. Duty liability–during course of manufacture 1.9
14. Deemed Provision 1.9
15. Meaning of the tem 'Raw Material' 1.10
16. Assembling 1.11
17. Plant and machinery erected at site and attached to earth are not dutiable 1.11
18. Excisability of Plant and Machinery assembled at site. 1.11
19. Cases in which 'Assembly' at site 1.12
20. Duty liability on goods assembled at site 1.13
21. Excise duty on generating sets assembled at site to be on merits 1.13
22. 'Manufacturer" vis-a-vis Independent contractor 1.14
23. Manufacturer, and Job worker: Immovables are not goods 1.14
24. In the case of Tata Robin Fraser Ltd. 1.15
Cen-Cus Details Contents ix
25. Essential ingredients of excisability of goods manufactured 1.15
26. Immovable property 1.15
27. In the case of Gwalior Rayon Silk Manufacturing 1.15
28. Construction at site 1.15
29. Levy of duty on plastic fabrications at site as permanent fixtures. No duty
on immovable property 1.16
30. It is held by CEGAT that Immovable are not goods 1.16
31. Dutiability of Lift Elevators and Escalators 1.16
32. Plant and machinery erected at site and attached to earth are not dutiable 1.17
33. Plant is not liable to duty 1.17
34. In the case of Quality Steel Tubes (P) Ltd. 1.17
35. Liability to Central Excise Duty of permanent and immovable fixtures,
artefacts and other utility and decorative articles emerging in the course of
'Interior Decoration' of Hotels, offices and other similar places 1.17
36. Ratios of some of the important judgments regarding manufacturer and Job
Worker 1.17
37. Ratios of judgements regarding processes 1.18
38. Where job-worker is independent entity 1.20
39. Ratio of judgements regarding processes 1.21
40. Utensils—Raw material Supplier—Owners of raw materials supplied to
other units for manufacture of the utensils 1.29
41. Manufacturer need not be owner of goods 1.30
42. Excisability and classification of Cable Jointing Kits 1.30
43. Labelling and repacking etc. 1.30
44. Conversion of Anhydrous Ammonia into liquid Ammonia (Aqueous Solution
of Ammonia) 1.31
45. Treatment of used/waste lubricating oil to make it fit for use/reuse as
lubricating oil amounts to "manufacture" 1.31
46. Process of embossing and pleating amounts to manufacture under Section
2(f) of CEA, 1944—Board's Order No. 52/1/98-CX. dt. 21.1.1998 under
CEA: Section 37B. 1.31
47. The D.C.M. case 1.32
48. South Bihar Sugar Mills case 1.33
49. Definition of the word "goods" 1.33
50. The case of Chemicals of India 1.33
51. Marketability of asbestos products 1.33
52. Excisable goods are only those which are marketable 1.33
53. Marketability & Manufacture 1.34
54. Processes leading up to the stage of goods completed for marketing are
within the process of manufacture 1.34
55. Marketability & Intermediate goods 1.34
56. Burden of proof that goods are marketable is on the Revenue 1.34
57. Test of marketability 1.35
58. Ratio of judgments on 'goods', 'excisable goods', 'manufacture',
'excisability' and 'marketability' 1.35
59. Duty liability on the activity of upgradation of computer system and addition
of hard disk. 1.36
60. Scope of word 'site' 1.37
61. Relief of payment of excise duty payable on toilet paper, facial tissues, etc.
manufactured out of big jumbo rolls 1.37
x Cen-Cus Guide to All Cen. Ex. Procedures SRP
62. Fitting of duty paid parts and components of air-conditioners —Whether
amounts to manufacture of a car air-conditioner 1.37
63. Cutting, Stamping, Folding etc. 1.38
64. Duty liability on the activity of creating a computer network from duty paid
computers 1.38
65. Declaration as Refinery—Taluka Lalpur Refinery—Communication of Order 1.39
66. Paper—Dutiability of printed cigarette paper captively consumed in the
manufacture of cigarette 1.39
67. Drawing of wire from wire rod 1.39
68. Whether drawing of iron and steel wires from wire rods amounts to
manufacture 1.40
69. Whether slitting of HR/CR coils of iron and steel sheets into strips would
amount to manufacture—Regarding 1.41
70. Excisability of plant and machinery assembled at site 1.42
71. Ratios of some important cases. 1.45
Chapter 2
CONCEPT OF EXCISABLE GOODS
1. Section 2(d)—CEA, 1944 2.1
2. CEA, Section 3 2.1
3. Excise duty 2.1
4. Marketability—Intermediate goods. 2.2
5. Excisable goods are only those which are marketable. 2.3
6. Aluminium cans not being marketable goods 2.3
7. Marketability—Manufacture 2.3
8. Goods—Marketability 2.3
9. Marketability decides dutiability 2.4
10. Excisability 2.4
11. Duty liability on intermediate products 2.4
12. Classification of a manufactured product 2.5
13. Intermediate Products 2.5
14. Deemed Provision 2.5
15. Plastic parts of mixies, wet grinders, T.V. sets, typewriters etc., are
marketable goods 2.6
16. Marketability, not actual sale, is the determining factor in defining a product
as goods. 2.6
17. 'Causing of Materials' 2.6
18. Immovable property 2.6
19. Immovable property is not excisable; it is not "goods 2.6
20. Duty liability on goods assembled at site 2.7
21. Dutiability of Lift elevators and escalators 2.8
22. Plant and machinery erected at site and attached to earth are not dutiable 2.8
23 Plant is not liable to duty 2.8
24. The ratios of some of the important judgements 2.8
25. Duty on parts of Kerosene stove during the period from 1.3.1994 to
22.7.1996 2.12
26. Excisability of liquid vegetable extracts obtained in the manufacture of
Ayurvedic Medicines—Clarification. 2.12
27. Liability to Central Excise Duty of permanent and immovable fixtures 2.13
28 Dutiability of laminated jute products in view of Notification No. 53/65-CE
dated 20.3.1965 2.14
Cen-Cus Details Contents xi
29. Excisability of intermediate products such as binder/resin/glues used in the
manufacture of particle boards. 2.14
30. Whether excise duty leviable on unsized or sized yarn (both cotton and
synthetic yarn) when these are manufactured and consumed captively for
weaving of fabric in a composite mill. 2.14
31. Odoriferous compound/Agarbathi mix arising during the course of
manufacture of Agarbathi. 2.16
32. Excisability of Press Mud arising during the manufacture of sugar—
Adjudication of cases. 2.16
33. Excisability of products of heading No. 30.03—Labeling of containers. 2.17
34. Central Excise—Excisability of plastic plaiting material (PPM) used for
manufacture of plastic mats/satranjis 2.17
35. Dutiability of Natural Gas supplied through pipelines 2.18
36. Proposing to Charge Excise Duty on Agricultural Tractors 2.18

Chapter 3
EXCISABLE GOODS MADE WITHOUT AID OF POWER
1. Power 3.1
2. Manufacture without power 3.3
3. Use of Power—Exemption to goods in relation to which no process is
carried on with the aid of power 3.4
4. Power—"Ordinarily" 3.5
5. Use of power for moulding 3.6
6. Manufacture—Re-packing of imported RBD palmolein oil into small
containers/ polythene bags 3.6
7. The ratios of some other important cases 3.6
Chapter 4
CLASSIFICATION OF EXCISABLE GOODS
1. For purposes of levy of excise duty 4.3
2. Rates specified in the schedule to the Central Excise Tariff Act, 1985 4.3
3. Approval of list 4.3
4. Classification once approved cannot be changed 4.4
5. Burden of proof for classification is on Government 4.4
6. Classification under CEA does not govern the classification under the
Customs Act or I.T.C. and vice-versa 4.5
7. Classification based on Chemical Examiner's report which was not shown
to the assessee, violates natural justice 4.5
8. Only marketable goods are classifiable and chargeable to duty 4.5
9. No penalty can be imposed unless mala fide is proved by the Department 4.5
10. Benefit of exemption notification not claimed in classification list 4.5
11. Classification—CKD—Incomplete imports cannot be classified 4.5
12. Principles of Classification of Goods 4.5
13. The pattern of classification in the new Central Excise Tariff 4.6
14. Rules for Interpretation of the CET 4.6
15. The scope and ambit 4.7
16. Tariff headings 4.10
17. Explanatory Notes to H.S.N.—Effect of 4.10
18. Relevancy of Rules of Interpretation 4.11
19. Classification according to commercial or Trade Parlance 4.11
20. Goods to be specified in positive terms by a particular entry 4.11
xii Cen-Cus Guide to All Cen. Ex. Procedures SRP
21. Classification to be supported by marketability 4.11
22. Scientific/Technical interpretation 4.11
23. Classification of final product not affected by classification of intermediate
product 4.12
24. Relevancy of end use and suitability 4.12
25. Expert Opinion 4.13
26. Advertisement not a determining factor 4.13
27. High Court has jurisdiction 4.13
28. Genus and species determine classification 4.13
29. Castings 4.13
30. Aluminium/Steel Grills used in air conditioners 4.13
31. Accessories of Textile Machinery 4.14
32. Classification of sugar syrup 4.14
33. Cable Joining Kits 4.14
34. Programmable Logic Controllers 4.14
35. Henna Powder 4.15
36. Tarpaulin/Processed/waterproofing canvas cloth 4.15
37. Blanks for ball pen tips 4.16
38. 'Zinc Chrome' 4.16
39. 'Dant Manjan Lal' 4.17
40. Iron and steel castings 4.17
41. Power Driven Pump Sets for handling water 4.18
42. Ratio of some Judgments 4.18
43. Steel balls manufactured for the purpose of being used in cycle 4.28
44. Waste and scrap of enamelled copper winding wires 4.28
45. Classification of grey cotton canvas and grey cotton duck, grey cotton tyre
cord fabrics, grey bolting cloth, grey filter cloth/straining cloth, belting cloth
and belting duck and grey cotton belting 4.29
46. Classification of "Ready Mix Concrete" 4.29
47. Classification of Rubberised Tyre Cord Warp Sheets for Cycle tyres which
do not reportedly contain weft yarn 4.30
48. Ayurvedic medicines or as Cosmetics/toilet requisites 4.31
49. Interpretation of the terms 'Drugs' and 'Cosmetics' 4.33
50. Instrument cluster 4.34
51. Pesticides for the purpose of levy of excise duty and countervailing duty 4.34
52. Waste paper under non-conventional raw materials for manufacture of
paper and paperboard 4.36
53. Liner Shelves, Middle Shelves, Tilting Bottle Shelves etc. made of M.S.
Grills for use in the refrigerators 4.36
54. Float cut grey woven pile fabrics (Corduroy) 4.37
55. Nycil Prickly Heat Powder 4.38
56. Plastic pipes and other plastic items used in the manufacture of Sprinkler
Irrigation Equipment 4.38
57. Yunani, Siddha and Homeopathic systems of medicines 4.39
58. Waste paper under non-conventional raw materials for manufacture of
paper and paperboard 4.39
59. Micronutrients 4.46
60. Whether combination of two equipments covered separately under two
different Serial Nos. of the same notification be allowed the benefit of
notification 4.47
Cen-Cus Details Contents xiii
61. Asafoetida–Classification of compounded— 4.48
62. (UPSS) uninterrupted power supply system–Delhi High Court Order
regarding classification & dutiability of–. 4.49
63. Plastic Tubes in running length, manufactured from plastic granules, arising
at intermediate stage of manufacture of plastic refill for ball-pen 4.50
64. Fusible interlining cloth 4.50
65. Synthetic soft drink concentrate/beverage bases 4.51
66. Dispute in classification of ‘Phenyl’ 4.51
67. STD/PCO Call Monitor 4.52
68. Body building activity on duty paid chassis 4.52
69. Aluminium foil backed with plastic material 4.53
70. Rubber solution 4.53
71. Orimulsion 4.54
72. Turmeric Powder 4.55
73. Liquid Glucose 4.55
74. Car Seat Covers 4.56
75. Steel Tubular Poles, commercially known as Transmission Poles 4.56
76. Ultramarine Blue 4.57
77. Plastic/Steel/Aluminium Grills used in air-conditioners 4.58
78. LD Slag arising in bulk in Steel Plants 4.58
79. Micronised Zircon Sand/Zirconium Silicate (Opacifier) 4.59
80. Dhoti/Sarees as fabric 4.60
81. Withdrawal of Board's Section 37-B Order No. 4/93 4.62
82. Classification of Rubber Cement or Black Vulcanizing Cement rubber
solution 4.62
83. Imposition of Additional Excise Duty 4.63
84. Clarification 4.64
85. Security Thread used in the currency notes 4.65
86. Mixture of hydrocarbons—Fluoron-11 and Fluoron-12 4.65
87. Narrow Woven Fabric made from poly propylene multifilament yarn 4.66
88. Softy Ice Cream being sold in restaurant etc. dispensed by vending
machine 4.66
89. Cable Jointing Kits 4.67
90. Gulab Jamun 4.67
91. Slagwool, rockwool and similar mineral wool 4.68
92. Printing Ink Medium 4.68
93. Spectacles fitted with photo-chromatic or photochromic lenses 4.69
94. Pesticides 4.69
95. Shikakai Powder 4.70
96. Plastic refill tubes cut to size meant for use in ball point pens 4.70
97. Flavoured tea 4.70
98. Mis-declaration of constitution of textile fabrics 4.72
99. “Link Cartridge Metallic Belt” and “Charger” 4.72
100. Chenille Fabrics 4.73
101. Di-calcium phosphate 4.74
102. Spent Sulphuric Acid 4.74
103. Thrust bearing assembly 4.75
104. Technical grade pesticides 4.76
105 Classification of Aluminium foil laminated on both sides with plastic film. 4.76
xiv Cen-Cus Guide to All Cen. Ex. Procedures SRP
106. Uninterrupted Power Supply System (UPSS) 4.77
107 Classification of ready made garments/apparel as handicrafts 4.77
108. Classification of used rails - Reg. 4.78
109. Classification of handmade biris, using printed lables/wrappers made with
aid of machine by job workers 4.78

PART II
ASSESSMENT AND REMOVAL OF GOODS

Chapter 5
ASSESSMENT OF EXCISABLE GOODS TO DUTY
1. Assessment-meaning of 5.1
2. Stage of assessment 5.1
3. The statutory Provisions for assessment and regarding duty payable on
removal 5.2
4. Self Assessment 5.2
5. Assessee is required to assess his return 5.3
6. Duty liability-responsibility 5.3
7. Jurisdiction-scrutiny requirements 5.3
8. Provisional Assessment 5.3
9. The guide lines and procedure for provisional assessment 5.4
10. Initiation of Provisional Assessment by Department 5.7
11. Application of new provisions 5.7
12. Execution of Bond—mandatory 5.7
13. Provisional assessment–Tests 5.8
14. Time-limit for finalisation of provisional assessments 5.8
15. Provisional assessment–When Department in doubt about the correct
classification 5.8
16. Provisional assessment when finalised 5.8
17. Adjustment—meaning of 5.8
18. Provisional Assessment—Whether need for verification before issuing
Show Cause Notice and passing the adjudication order. 5.9
19. Provisional assessments in respect of Nycil Prickly Heat Powder. 5.9
20. Check on delays–Maintenance of Call Book—Instructions 5.9
21. Time-Limit for finalising provisional assessments 5.10
22. Orders issued by CBE & C 5.11
23. Modification of Board's Circular No. 410/43/98-CX 5.11
24. Ratios of some important cases 5.12
25. Excise duty on woven textile fabrics. 5.12
26. Inclusion of PDI and cost of after sales services in the assessable value of
the vehicle. 5.13
27. Excise Duty on Steel Formers consumed captively in Induction Furnace. 5.15
28. Demurrage (Ship Detention charges) in the assessable value of imported
goods 5.16
29. Application of the doctrine of unjust enrichment to provisional assessment
cases 5.16
30. Excisability of sugar syrup 5.16
31. Readymade garments claimed as ‘Handicrafts’ 5.17
32. Regarding Central Excise duty on packed tea during the period
2.6.1998 to 23.6.1998 5.18
33. Introduction of Automated Courier Mail Delivery System (CMDS) for
acknowledgement of letters tendered by Central Excise Assesses 5.18
Cen-Cus Details Contents xv
Chapter 6
CLEARANCE OF EXCISABLE GOODS AND PAYMENT OF EXCISE DUTY
1. Goods to be delivered on an invoice. 6.2
2. Clearance of Cigarettes. 6.2
3. Preparation of invoices when goods dispatched through more than one
vehicle because of their size. 6.2
4. Weighment of goods out-side factory before preparing invoices. 6.3
5. Cancellation of invoices 6.3
6. Procedure of Transshipment of goods en route final destination 6.3
7. Clearance of model/ proto-type without payment of duty for trial etc 6.4
8. Special Procedure 6.4
9. Pass Out Document 6.5
10. Manner of payment of duty 6.7
11. Fortnightly payment of excise duty—Proforma prescribed for Range
Offices—Monitoring of the new payment procedure 6.9
12. e-Payment of Central Excise & Service Tax—reg. 6.10
13. Action for ensuring timely payment of dues under Fortnightly payment
system and also immediate action for recoveries in cases of defaults 6.12
14. Opening of Personal Ledger Account 6.13
15. Clearance of Matches 6.13
16. Procurement of Central Excise Stamps 6.14
17. Safety of stamps 6.15
18. Account of Central Excise Stamps purchased and used 6.15
19. Time and manner of affixing Central Excise Stamps 6.15
20. Method of packing 6.16
21. Disposal of matches and of damaged Central Excise Stamps 6.16
22. Marking of Matches intended for export 6.16
23. Removal of matches bearing Central Excise Stamps purchased on credit. 6.17
24. Procedure for deposit of Central Excise duties/other dues during strikes,
prolonged holidays or sudden closure of banks (e.g. sudden strikes, natural
calamities) etc. 6.17
25. Scheme of collection of CBEC dues—Releasing of receipted challans 6.18
26. Collection of Central Excise Revenue—Adoption of the revised pattern of
"One Bank-One Collectorate 6.19
27. Accountal of Petroleum Products movements through pipelines 6.20
28. Excise duty on woven textile fabrics 6.21
29. Excise Duty on Steel Formers consumed captively in Induction Furnace 6.23
30. Examination norms concerning import & export through courier mode 6.24
Chapter 7
INVOICING UNDER CENTRAL EXCISE LAW
1. Introduction 7.1
2. The statutory provisions 7.1
3. Removals only on invoice 7.2
4. In case of cigarettes 7.2
5. Serially numbered invoice 7.2
6. Number of Invoice copies 7.3
7. Number of Invoice book 7.3
8. Authentication of Invoices 7.3
9. Intimation of serial numbers 7.3
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10. Rounding off of duty in invoice 7.3
11. Preparation of invoices when goods dispatched through more than one
vehicle because of their size 7.3
12. Weighment of goods outside factory before preparing invoices 7.4
13. Cancellation of invoices 7.4
14. The particulars required to be incorporated in the Invoice 7.5
15. Computer generated invoice —Rule 173C and 52A 7.6
16. Requirements regarding invoices on floppy 7.6
17. Invoicing procedure 7.6
18. Computerisation of Accounts —Pattern of numbering the invoices—
Standardisation 7.6
19. Invoices—Manner of writing of figures of unit/ quantity/-duty/value using
decimal points 7.8
20. Issue of CE invoice manually when computer fails to work 7.8
21. Preparing of invoices on computer when power supply is not available or
computer is out of order 7.9
22. Invoices—Pre-printing of certain details in the Invoices issued by Dealers—
Relaxation with respect to computer generated invoices 7.9

Chapter 8
PAYMENT OF DUTY UNDER PROTEST
1. Payment of duty under Protest 8.1
2. Duty under protest 8.2
3. Refund 8.2
4. Protest cannot be lodged retrospectively 8.2
5. Authority to accept protest letter 8.2
6. Appellants' letters are 'protest' 8.2
7. Duty-Paid under protest 8.2
8. Letter of protest substantially complies with provisions of Rule 233B 8.2
9. Duty paid under protest—Refundable notwithstanding unjust enrichment 8.2
10. Protest on payment of duty once lodged stands until disposed of by
competent authority under proper orders 8.3
11. Judgements on "duty paid under protest" 8.3

Chapter 9
DRAWING & TESTING OF SAMPLES UNDER CENTRAL EXCISE LAW
1. Introduction 9.1
2. Procedure for drawing samples 9.1
3. Categorization of Samples 9.1
4. Procedure for the drawl and accounting of Samples 9.1
5. Quantity of samples 9.2
6. Test Memo 9.2
7. Preservation of Samples 9.3
8. Cost of samples when drawn by the Department 9.3
9. Procedure for testing and re-testing of samples drawn by the Department 9.3
10. Samples drawn at the time of export of goods 9.5
Cen-Cus Details Contents xvii
11. In almost every commodity different types of samples are drawn for
different purposes 9.5
12. Accountal of Samples 9.5
13. Disposal of remnant samples 9.6
14. Re-test in a laboratory other than a Control Laboratory 9.7
15. Test report limited to the lot from which Sample drawn. 9.7

Chapter 10
VALUATION OF EXCISABLE GOODS
1. Valuation of Excisable Goods chargeable to ad valorem duty 10.2
2. Determination of valuation and classification of excisable 10.2
3. Legal provisions of valuation 10.3
4. CEA: Section 4—Transaction Value 10.7
5. Related Persons 10.14
6. Leading judgments 10.16
7. The case of Union of India 10.16
8. Other important judgments 10.19
9. In Circular No. 136/47/95 10.20
10. Interest accruing out of security deposits/advances/ deposits taken by
manufacturing units when not includible 10.22
11. Determination of Assessable Value 10.23
12. Inclusion of cost of after sales services during the initial running in period of
the vehicle by the dealers to their own buyers in the assessable value of
the vehicle 10.24
13. Inclusion of cost of after sales services -regarding 10.25
14. Collection of duty on escalation charges 10.26
15. Valuation of goods for Central Excise Purposescum duty price 10.26
16. Valuation of Motor Vehicles 10.27
17. Central Excise duty on "Demo Cars" 10.27
18. Determination of Assessable Value (AV) of Petroleum Products 10.28
19. Judgments of Supreme Court 10.33
20. Liability of duty on notional interest on advance deposits taken by
manufacturers 10.34
21. Valuation under section 4 of Central Excise Act, 1944—Inclusion of cost of
Moulds/ Dies in the assessable value 10.34
22. Addition of value of cost of labels supplied by the customers in the
Assessable value of Plastic moulded containers 10.35
23. Determination of value under section 4 of the Central Excise Act, 1944 for
adding the money value of the additional consideration on account of
interest free deposits 10.36
24. Goods where the subsequent process does not amount to manufacture but
the process adds to the intrinsic value of the product to make up full
commercial value 10.40
25. Amended definition of "place of removal" 10.40
26. CA No. 5832 of 1999 10.41
27. Valuation of goods manufactured on job work basis by independent textile
processors 10.41
28. Ratios of some important judgment 10.43
29. Minimum Retail Price based Valuation for excisable goods 10.49
30. Under Section 4A of Central Excise Act, 1944 10.50
xviii Cen-Cus Guide to All Cen. Ex. Procedures SRP
31. MRP based valuation on cosmetics and toilet preparations 10.51
32. When the Scheme for valuation based on retail sale price 10.52
33. Intimation regarding M.R.P. on packing 10.57
34. Charging of excise duty with reference to Maximum Retail Price (MRP) 10.58
35. S. No. 229 of Notification No. 5/98-CE 10.59
36. Multi-piece packages of a commodity intended for retail sale notified under
CEA: S. 4A—Assessment to excise duty 10.59
37. CVD—Calculation of additional duty of customs equal to excise—Imported
colour TV receiver sets having MRP affixed on packages 10.60
38. Valuation under Section 4A 10.62
39. Ratios of some important judgements 10.62
40. Mrp Based Excise Levy 10.65
41. Job-work. 10.66
42. Section 4A 10.68
43. Clarification—under the new Valuation Rules. 10.70
44. Computer Systems sold along with software 10.70
45. Computer (Hardware) 10.71
46. Abatement in respect of set off on Sales Tax 10.71
47. Advisory Committee on Abatement 10.72
48. Inclusion of interest on Sales tax in the assessable value. 10.73
49. Inclusion of PDI and cost of after sales services in the assessable value of
the vehicle. 10.73
50. Tubes 10.74
51. Valuation of goods for CE purpose–Cum–duty price 10.74
52. Clarification with regards to valuation of the goods 10.74
53 Clarification with regard to valuation of capital goods or inputs removed
from the factory 10.75
54. Prospective implementation of orders relating to valuation and
classification matters or matters having recurring revenue effect –
regarding 10.76
55. Deduction of Cost of Transportation for the Return Journey 10.76

Chapter 11
REMOVAL OF GOODS AT CONCESSIONAL RATE OF DUTY FOR THE
PURPOSE OF SPECIFIED USE

Chapter 12
JOB WORK UNDER CENTRAL EXCISE LAW
1. No specific provision 12.1
2. Removal of inputs or capital goods 12.1
3. The job-work scheme a number of Notifications 12.1
4. Notification No. 214/86-CE, dt. 25.3.1986 12.5
5. Procedure for job work in terms of Notification No. 214/86-CE 12.5
6. Procedure for movement of goods for Job Work 12.6
7. Waste arising during job work 12.11
8. Goods produced on job work basis exempted from duty 12.11
9. Job work—return to be ensured 12.11
10. Receipt of raw materials directly by job worker 12.11
Cen-Cus Details Contents xix
11. Modvat—Return of defective inputs—Issue of invoices—Rule 57F(3) 12.12
12. Ratios of some important cases on the subject 12.12
13. Valuation of goods manufactured on job-work. 12.12
14. Documents prescribed for movement of goods for job-work 12.13
15. Jeweller 12.13

Chapter 13
CLANDESTINE REMOVAL OF EXCISABLE GOODS
1. Clearance of goods 13.1
2. Removal after regular procedure is not clandestine 13.1
3. Clandestine removal to be established 13.1
4. Penalty 13.1
5. Shortage 13.1
6. The ratios 13.1

Chapter 14
BUDGET DAY INSTRUCTIONS
1. Removal of Budget Day restrictions for Budget 2003-2004

Chapter 14A
RETURN OF DUTY PAID GOODS TO THE FACTORY
1. Return of duty paid goods 14A.1
2. If the goods so returned 14A.1
3. Clarification reg. goods for refining, re-making, etc 14A.1
4. Re-entry of the goods 14A.2
5. Re-import of exported goods 14A.2
6. Under Central Excise Rules 14A.2
7. Re-entry of duty paid dumper into factory and sale thereafter does not
render it liable to duty on the second removal 14A.3
8. Clearance of excisable goods for display in Fairs/ Exhibitions 14A.3
9. Refund of duty in respect of damaged cigarettes returned to factory 14A.5
10. Rule 173H 14A.5
11. To avail of the benefit of Rule 173H 14A.6
12. Remaking should not amount to manufacture 14A.6
13. Rule 173H—Returned Goods 14A.6
14. Ratios of the important case law 14A.6
15. Goods like paper rejected by buyers 28.7
16. Procedure for Re-import of goods of Indian origin which are sent abroad for
exhibition 28.7
xx Cen-Cus Guide to All Cen. Ex. Procedures SRP
PART III
LEVY

Chapter 15
LEVY AND COLLECTION
1. Authority to levy 15.1
2. There are 99 items enumerated in List I or the Union List in the Seventh
Schedule 15.2
3. There are 66 items in List II
4. List I 15.2
5. Goods produced or manufactured in India 15.2
6. Duties leviable on all excisable goods produced or manufactured in India 15.4
7. Goods which fall under the Schedule 15.4
8. The word "goods" has been defined 15.5
9. In the D.C.M. case 15.5
10. In South Bihar Sugar Mills case 15.5
11. In Order-in-Revision No. 1842/77 15.5
12. The undeodorised refined oil 15.6
13. Thus the definition of the word "goods" 15.6
14. After deciding that the article under consideration is "goods" 15.6
15. Levy of Duty 15.6
16. Levy, Collection and assessment—Distinction between 15.6
17. Excisable goods are only those which are marketable Onus to establish 15.6
18. Taxable event 15.6
19. Growth of Collections of Central Excise Duties 15.7
20. Procedures for collection of duties of Excise 15.7
21. Physical Control Procedure 15.7
22. Self-Removal Procedure 15.8
23. Compunded Levy System 15.8
24. Manner of Collection of Central Excise Duty 15.8
25. Rules 9 and 49 require payment of duty before the goods are removed
from the factory 15.8
26. Duty Leviable at rates of duty at time of clearance 15.8
27. Goods—Marketability 15.9
28. Marketability 15.9
29. Marketability—Manufacture 15.10
30. Marketability of goods is essential to attract duty as burden of the indirect
duty of excise falls on the ultimate consumer 15.10
31. Marketability, not actual sale 15.10
32. Marketability decides compass and dutiability 15.11
33. Marketability decides dutiability. Burden of proof is on Revenue 15.11
34. Intermediate product 15.11
35. Excisability 15.11
36. Important judgments on excisability 15.11
37. Distribution of liquid gas 15.12
38. Excise duty on gases falling under Chapters 28 and 29 escaping into
atmosphere by flare system 15.12
39. Ratios of some important cases 15.13
Cen-Cus Details Contents xxi
40. Khandsari molasses 15.13
41. Procedure to be followed for despatch of Kerosene 15.14
42. Levy of Excise Duty on Coal Ash (Cinder) 15.15
43. Levy of Excise Duty on Sweetmeats, namkeens and similar edible
preparations in ready for consumption form, manufactured in a "factory" 15.16
44. Levy of excise duty on tea put up in unit containers 15.17
45. Levy and collection of Cess on ‘Instant Tea’ 15.17
46. Central Excise duty on bulk cement 15.18
47. Supply of car for physically handicapped customers on concessional rate of
excise duty 15.19
48. Allowance of maximum permissible error on net quantity by weight
declared in packages/pouches of pan masala, chewing tobacco and gutkha 15.20
49. Collection of duty on the basis of Annual Capacity of Production of a
factory 15.20
50. Levy of excise duty on readymade garments on the basis of Retail Sale
Price (RSP) 15.21
51. Levy of Excise Duty on food preparations and waters, not cleared in sealed
containers 15.22

Chapter 16
COMPOUNDING LEVY SCHEME
1. Compounded Levy 16.1
2. Stainless Steel patties/patt--as and Aluminum Circles 16.1
3. Application to avail special procedure 16.1
4. Discharge of duty liability on payment of certain sum 16.3
5. Manufacturer's declaration and accounts 16.3
6. Exemption from certain provisions etc 16.5
7. Provisions regarding new factories and closed factories 16.5
8. Power to condone failure to apply for special procedure 16.6
9. Provision regarding factories ceasing to work or opting for the normal
procedure 16.6
10. Confiscation and penalty 16.6
11. Transitional provision 16.6
12. Discharge of liability for duty on payment of certain sum 16.6
13. Default in payment of duty 16.7
14. Manufacturer's accounts 16.7
15. Returns and intimations 16.8
16. Exemption from certain provisions 16.8
17. Power to condone failure to apply for special procedure 16.8
18. Confiscation and Penalty 16.8

Chapter 17
RECOVERY OF SHORT LEVY UNDER THE CENTRAL EXCISE LAW
1. Where duties are not levied, or not paid 17.3
2. CENVAT credit taken or utilised wrong y can also be recovered 17.5
3. Period of 6 months specified in Section 11A of Central Excise Act 17.5
4. Demands issued without adopting quasi-judicial procedure 17.6
5. Demand notice for recovery of duty short levied is bad in law as no show
cause notice was issued prior to the demand notice 17.7
xxii Cen-Cus Guide to All Cen. Ex. Procedures SRP
6. Department was not entitled 17.7
7. Show Cause Notice must prove suppression if extended time bar is
invoked 17.7
8. Demand without show cause notice is illegal 17.8
9. Demand cannot be confirmed under Rule 10 if the Show Cause Notice has
been issued under Rule 9(2) 17.8
10. The Demand for duty is time-barred under Section 11A as there is no
suppression of facts 17.9
11. Show Cause Notice is not invalidated by mere non-indication of duty
demand 17.9
12. There was no in-built limitation in Rule 9(2) at the relevant time, nor did
Rule 9(1) apply only to clandestine removals, hence notice under Rule 9
(2) correct 17.9
13. Demand without a show cause notice is illegal 17.9
14. Demand for duty without valid order of classification is not justified 17.10
15. Demand can be made only after regular order of assessment 17.10
16. Demand is invalid if issued before close of the slab year 17.10
17. Voluntary payment cannot be retained by Department 17.10
18. Demand raised under the old Rule 10 can be confirmed under section IIA 17.10
19. Demand without SC notice 17.10
20. Reassessment in this case cannot be retrospective 17.10
21. Demand when classification is modified by Department 17.10
22. Recovery 17.11
23. Demand to be worked out from RT 12 returns for 6 months only 17.11
24. The limits of six months under section 27(1) is absolute 17.11
24. Department can recover dies for 6 months 17.11
26. Limitation 17.11
27. Section 11A 27.11
28. Authorities functioning under CE & Salt Act 17.11
29. Extended limitation 17.11
30. Non recovery of duty 17.12
31. S.C.N. invoking period of 5 years 17.12
32. Retrospective effect cannot be allowed if all the material facts were in the
knowledge of the excise authorities 17.12
33. Demand of Duty extended limitations 17.12
34. Limitation (extended) is inapplicable if not alleged in show cause notice 17.12
35. Limitation 17.13
36. Show Cause Notice under section 11A is a statutory requirement 17.13
37. When is concealment of fact, a deception 17.13
38. Demands raised on basis of an audit Memo 17.13
39. Extended limitation under Section 11A is not applicable 17.13
40. There is no clandestine removal 17.14
41. Demand for short levy invoking larger period of limitation of five years 17.14
42. No charge of suppression can be made as the Central Excise Officers 17.14
43. Extended limitation 17.14
44. Stay/Recovery of Government dues during Pendency of Stay/Dispensation
of Prior Deposit Application 17.14
45. Demand—Limitation—Suppression 17.15
46. Extended period of 5 years 17.15
Cen-Cus Details Contents xxiii
47. Limitation (extended) cannot be invoked since there is no allegation of
wilful suppression of facts or mis-representation or fraud 17.15
48. Recovery of Govt. dues pending in appeal—Within 30 days or 3 months 17.16
49. Section 11A—Invoking the provisions of Sec. 11A of Central Excise Act,
1944—Dy Collector & Additional Collector to give orders for 17.16
50. Coercive measures to recover duty demanded as a result of adjudication till
such time as the appeal filed by the appellant has been disposed of by the
Collector (Appeals) not to be taken 17.16
51. Stay—Recovery (coercive) measure apply to Govt. Departments & Public
Sector Units also. Cus. Act: S. 129E 17.17
52. Appeal Demand—Coercive measures 3 months after the receipt of the
decision of the Appellate Collector 17.17
53. If Time bar proved, case may not be heard on merits 17.17
54. Suppression and wilful mis-statement 17.18
55. Demand—Classification List/Price list approved. Duty short levied for the
period prior to issue of show-cause notice recoverable subject to time-limit
prescribed under S. 11A of CESA, 1944--Reg. 17.18
56. Recovery of sums due to Government 17.19
57. Modvat credit 17.19
58. Recovery of credit wrongly availed 17.19
59. Recovery of Modvat 17.19
60. Modvat—Reversal 17.19
61. In the Budget 1995 17.19
62. With effect from 28.9.1996, Sections 11AB and 11AC 17.20
63. The various Departmental instructions 17.22
64. Finance Act, 1995 17.22
65. Issue of Show Cause Notice for extended period of Demand—Instruction 17.22
66. Demand-audit objection is no ground to impose duty without proper
investigation 17.23
67. Demand 17.23
68. Demand made on RT 12 17.23
69. Demand without issue of Show Cause Notice within limitation is illegal 17.23
70. Ratios of some more cases 17.23
71. Realisation of Dues 17.24
72. Issue of Show Cause Notice 17.24
73. Sale of movable/immovable properties by Central Excise Officers for
recovery of Central Excise dues 17.26
74. Creation of Recovery Cell 17.40
75. Sale of movable/immovable properties by Central Excise 17.40
76. Sale of movable/immovable properties by Central Excise 17.41
77. Use of provisions relating to Attachment and Sale 17.41
78. Sale of movable/immovable properties by Central Excise 17.42
79. Sale of movable/Immovable properties by Central Excise Officers for
recovery of Central Excise dues—reg. 17.42
80. Sale of movable/immovable properties by Central Excise officers for
recovery of Central Excise dues regd. 17.43
81. Payment of Government dues in instalments 17.43
82. Avoiding indiscriminate issue of show cause notices 17.44
83. Recovery of central excise duty on account of re-fixation of ex-factory
prices of levy sugar 17.44
xxiv Cen-Cus Guide to All Cen. Ex. Procedures SRP
84. Recovery of Central Excise duty on account of fixation of ex-factory prices
of levy sugar for 1974-75 to 1979-80 Sugar seasons 17.44
85. Formation of Tax Recovery Cell—Nomination of Tax Recovery Officer 17.45
86. Recovery of dues—No coercive measures to be taken to realise dues till
disposal of stay application by Commissioner (Appeals) 17.45
87. Modification of Circular No. 5/83-CX.6 dated 10.3.1983 regarding issue of
demand relating to Audit Objections 17.45
88. Amendment of Section 11A of Central Excise Act, 1944 17.46
89. Issue of Notification under Section 11-C in respect of Recorded Video
Cassettes 17.46
90. Notification under Section 11C 17.47

Chapter 17A
REMISSION OF DUTY AND DESTRUCTION OF GOODS
1. Meaning 17A.1
2. The Statutory provisions 17A.1
3. Remission of duty 17A.1
4 Remission application—Guidelines for submission of 17A.2
5. Procedure for destructions of good 17A.3
6. Manner of destruction 17A.4
7. The request for remission of duty on the molasses 17A.4
8. It happens at times that inspite of best precautions and safeguards 17A.4
9. Molasses was damaged by auto combustion 17A.5
10. Remission of duty when goods are unfit for human consumption 17A.5
11. Ratio of important cases 17A.5
12. Payment of Central Excise duty & Service Tax for the month of
March/quarter ending March by 31st March itself - Extension of facilities
and arrangements for remittance – Reg 17A.6

PART IV
CENVAT

Chapter 18
CENVAT CREDIT SCHEME
1. Introduction 18.2
2. Initially, the MODVAT Scheme was made applicable only to the goods
comprised in 37 Chapters of the Schedule 18.2
3. Modvat Scheme was extended to the Capital Goods Sector 18.2
4. Section 37 of the Central Excise Act 18.2
5. Changes in CENVAT Scheme 18.2
6. The Cenvat Credit Rules, 2004 18.2
7. CENVAT Credit Rules 2002 18.3
8. Recovery of CENVAT credit of A.E.D.(G.S.I.) wrongly 18.3
9. The CENVAT Credit Scheme was further simplified 18.3
10. Salient fcatures 18.3
11. Procedure for removal of Final Product from the premises 18.5
12. Recovery of 'amounts' 18.6
13. Realisation of the amount paid 18.6
Cen-Cus Details Contents xxv
14. Whether gate-passes issued prior to 1.4.1994 18.7
15. Availment of accumulated MODVAT/CENVAT Credit 18.7
16. SSI–—Modvat—Exemption 18.8
17. Admissibility 18.8
18. Denial 18.8
19. Glass Bottles used as packaging 18.9
20. Flattened containers 18.10
21. Cash refund of the unutilised Modvat/Cenvat credit 18.10
22. Admissibility of Modvat on inputs store outside the factory 18.11
23. CVD paid on impoted car kits 18.12
24. Modvat—Invoice—Procedural Lapse 18.12
25. CEGAT pased its judgment 18.12
26. Waste package/containers 18.13
27. Waste packages/containers used for packaging Modvatable inputs 18.14
28. Ratios of some important judgements 18.14
29. Ratios of some other important 18.17
30. Availment of MODVAT Credit as well as exemption under Small Scale
Industries Exemption Notification. 18.22
31. Capital goods which are written off 18.23
32. Availment of Cenvat/Modvat credit when common inputs are used for both
dutiable and exempted products 18.23
33. Cenvat Credit on Capital goods 18.24
34. Payment of rebate amount of the duty 18.24
35. Diversion of credit taken on inputs 18.25
36. Acceptance of self-declaration as to the non-availment of Cenvat facility for
extending the duty drawback 18.25
37. Availment of CENVAT/ Modvat credit when common inputs are used for
both dutiable and exempted goods–Board’s Circulars No. 591/28/2001-CX
dated 16.10.2001 and No. 654/45/2002-CX dated 19th August 2002 18.26
38. Acceptance of self-declaration as to the non-availment of Cenvat facility for
extending the duty drawback 18.26
39. Availment to credit on inputs used exclusively for the manufacture of
exempted finished goods 18.27
40. Notifications 69/2003-CE (NT) to 73/2003-CE (NT)—changes in rule 4 of
CENVAT Credit Rules, 2002—Board’s circular No. 747/63/2003-CX dated
22.09.2003 18.28
41. Clarification regarding availability of clearance based exemption to the
textile traders 18.29
42. Reversal of CENVAT Credit on clearance of goods under rule 19(2) of
Central Excise Rules, 2002 under notification 43/2001-CE (NT) dated
26.6.2001 18.31
43. CENVAT Credit involved on stock of Light diesel oil as on 28.3.2003 18.32
44. Reversal of CENVAT Credit on clearance of goods under rule 19(2) of
Central Excise Rules, 2002 under notification 43/2001-CE (NT) dated
26.6.2001 18.32
45. Treatment of Credit balance at the Year-end 18.33
46. Reversal of Cenvat credit on clearance of goods under rule 19(2) of Central Excise
Rules, 2002 under notification 43/2001-CE(NT) dated 26.6.2001 18.34
47. Admissibility of CENVAT Credit on inputs used in the manufacture of the
finished goods on which duty has been remitted—Board’s Circular
650/41/2002-CX dated 7th August, 2002 18.34
xxvi Cen-Cus Guide to All Cen. Ex. Procedures SRP
48. Filing of ER—5 & ER—6 returns with the introduction of Rule 9A of
CENVAT Credit Rules, 2004 18.35
49. Central Government’s direction for refund of CENVAT Credit 18.36
50. Special procedure for removal of excisable goods for carrying out certain
processes under Rule 16 C of the Central Excise Rules, 2002 18.40

PART V
EXEMPTION

Chapter 19
DUTY EXEMPTIONS
1. Exemption from duty. 19.1
2. The statutory provisions 19.2
3. Raw materials–Cathode Ray Tube parts manufacture 19.3
4. Computers 19.3
5. LPG and Kerosene 19.3
6. Tractors, dairy machinery and hand tools 19.3
7. Certain rehabilitation aids exempted 19.3
8. patent leather 19.3
9. Rough coloured precious gemstones 19.3
10. Section 5A was inserted by the customs and Central Excises Laws
(Amendment) Act 19.3
11. Public interest a pre-requisite for granting an exemption. 19.4
12. Exemption Notifications are not retrospective in effect and cannot be
considered clarificatory in nature in the absence of a Specific Provision. 19.5
13. Notification to be considered part of the Parent Act. 19.5
14. Notifications. 19.5
15. Interpretation of Notification 19.5
16. Notifications under Rule 8(1) 19.5
17. When there are two rates of duty 19.6
18. Notification—procedural 19.6
19. Effective date 19.6
20. Exemption under two Notifications 19.6
21. Intendment 19.6
22. Exemption cannot be denied 19.6
23. The effective date of a notification 19.6
24. Benefits 19.7
25. Effective date is not the date on which a notification is printed 19.7
26. Cegat Order No. 939/90-C 19.7
27. Effective date of Exemption Notification is when Gazette is made public 19.7
28. Benefit of first Notification 19.7
29. Benefit for period of currency of notification cannot be denied though
decision may be taken after its lapse. 19.7
30. Exemption cannot be granted 19.7
31. Exemption not claimable 19.8
32. Exemption 19.8
33. Option to pay duty on fully exempted goods 19.8
34. Exemption not deniable 19.9
Cen-Cus Details Contents xxvii
35. Exemption not deniable even if not claimed in Classification List. 19.9
36. Exemption from excise duty 19.9
37. Paper & Pulp—Concessional rate 19.10
38. Paper & Paperboard—Notfn. No. 73/95-CE. 19.11
39. Paper & Paperboard—Concessional rate 19.11
40. Exemption to Hospital Laundry equipment. 19.14
41. Exemption to Duplicating Machines 19.15
42. Eligibility 19.16
43. A benefit 19.17
44. Imported goods 19.17
45. Exemption cannot be denied by considering 19.17
46. Ratios 19.17
47. Exemption to articles 19.20
48. Goods manufactured 19.20
49. General Exemption 19.21
50. Exemption to Dyed woven fabrics 19.21
51. Paper Manufacture Procedure 19.22
52. Fly Ash/Phospho Gypsum consumed 19.27
53. Method of calculation 19.28
54. Excise Duty 19.29
55. Exemption from the Excise Duty 19.30
56. 'Spares and Components' 19.30
57. Date 19.31
58. Extension of benefit 19.31
59. Water Treatment Plants. 19.33
60. Tobacco products 19.34
61. Exercising option to avail of the exemption to specified goods 19.35
62. Clarifications on the term “Substantial Expansion” 19.36
63. Important ratios 19.37
64. Exemption for specified goods for the manufacture of rotor blades for wind
operated electricity generators – Clarification 19.40
65. Exemption from Central Excise Duty to parts falling under any Chapter,
when used within the factory of production for manufacture of goods of
heading 8701 19.41
66. Ready to eat and packaged Namkeens, Bhujia etc. falling under tariff item
2106 90 99 of the Central Excise Tariff, whether eligible for full exemption
under Sr. No. 29 of Notification No. 3/2006-CE dated 1.3.2006 or attract
8% duty under Sr. No. 30 of the said notification 19.41
67. Requirement of filing declaration by the producers/manufacturers of hand
made unbranded biris (other than paper rolled biris)-reg 19.42

Chapter 20
SSI PROVISIONS
1. Setting up of Tax Clinics for Small Scale Sector Manufacturers. 20.1
2. Exemption from Central Excise duty for small scale sector. 20.2
3. Small Scale Industries duty exemptions prior to 1986 Budget. 20.2
4. Proposal to permit SSI units to pay excise duty on a monthly basis with
effect from 1.6.1999 20.2
5. SSI Units not taking Cenvat Credit: Exemption Scheme. 20.4
xxviii Cen-Cus Guide to All Cen. Ex. Procedures SRP
6. Computation of aggregate value of clearances for calculating the eligibility
limit 20.10
7. SSI Exemption. 20.10
8. Enhancement of exemption limit 20.10
9. Simplification of procedure—SSI manufacturers, Export Oriented units and
Registered dealers. 20.11
10. Definition of SSI. 20.11
11. Notification No. 36/2001-CE(NT), dt. 426.2001— 20.12
12. Clarification regarding simultaneous availment of SSI exemption 20.12
13. Showing of progressive 20.12
14. Para 4 of Notification No. 1/93-CE dt. 28.2.1993—Affixation of brand name
of foreign company—Exemption not available. 20.13
15. Applicability of S.S.I. exemption 20.14
16. Parent company and subsidiary companies are two separate legal entities 20.15
17. Raw materials supplied by another person/manufacturer should be entitled
to exemption under Notification No. 1/93-CE dated 28.2.1993. 20.15
18. SSI units not to be visited by Inspectors without Assistant Commissioner's
permission 20.16
19. Small Scale Units-Job work 20.17
20. Registration and clubbing 20.20
21. The ratios of the case-law on the subject covered in this Chapter are
summarised 20.20
22. Review of CEGAT 20.24
23. Monthly payment 20.25
24. Monthly payment by SSI units 20.25
25. Imposition of levy 20.26
26. Special Scheme 20.29
27. Special scheme 20.29
28. SSI Exemption for units availing of CENVAT Credit. 20.30
29. Availment of MODVAT Credit as well as exemption under 20.33
30. Export by SSI Units 20.34
31. Setting up of Help Centre for Small Scale Sector manufacturers—reg. 20.34

Chapter 21
CONCEPT OF CLUBBING OF PRODUCTION
1. Clubbing of production. 21.1
2. Clubbing of SSI Units 21.1
3. SSI units which are not independent units 21.1
4. When the partners of a firm set up a second partnership firm without
plausible reasons, and claim the benefit of exemption 21.1
5. Common Partners and Directors 21.1
6. A public limited company 21.2
7. Clubbing of Units 21.2
8. Clubbing of clearances 21.2
9. Clubbing of production. 21.2
10. SSI Units holding separate SSI certificates 21.2
11. Clubbing of two firms 21.2
12. The concept of clubbing 21.2
13. SSI—Clubing—Dummy Units 21.2
14. Ratios of important case-law 21.2
Cen-Cus Details Contents xxix
Chapter 22
MANUFACTURE OF BRANDED GOODS
1. The problem of manufacture 22.1
2. Brand name and Trade name holders are not manufacturers 22.1
3. Branded goods cleared without payment of duty 22.3
4. Goods manufactured with Customer's brand name 22.3
5. Valuation of branded goods 22.3
6. Branded Jewellery 22.4
7. Demand for duty 22.5
8. Brand name—Notfn. No. 88/88-CE dt. 1.3.1988—Clarification 22.6
9. SSI—Brand name. 22.6
10. Some important judgments 22.10
PART VI
REFUND

Chapter 23
REFUNDS AND CONSUMER WELFARE FUND
1. Refund of any duty of excise 23.2
2. The new provisions 23.4
3. Refund of security deposited in respect of a bond 23.6
4. Refunds in respect of balances in PLA 23.6
5. Refund claims-Reason for delay in disposal 23.7
6. Refunds—Principle of estoppel 23.7
7. Refund of duty collected without the authority of law 23.7
8. Refund claims should be submitted complete in all respects 23.7
9. Refund allowed 23.8
10. Statutory period for refund claim 23.8
11. Statutory period of limitation 23.8
12. The limitation of 3 years 23.8
13. Time limit for refund in case of mistake of law 23.9
14. Department was not entitled 23.12
15. Time-barred Refund Claim 23.12
16. Refund can only be claimed by the party who had paid the duty 23.12
17. Refunds: Unjust enrichment cannot be denied on pleas of equity 23.12
18. Illegal collection 23.13
19. Refund 23.13
20. Revenue must refund money 23.13
21. Duty paid 23.13
22. A refund claim is not hit by limitation if filed within the prescribed time limits 23.13
23. Once the assessment of duty is held illegal, duty-paid, 23.14
24. Refund cannot be withheld once an order is set aside, just because
revenue contemplates an appeal 23.14
25. Board's Instructions regarding delay in disposal of refund claims 23.14
26. Refund of duty arising out of Appellate Collector's 23.14
27. Procedure for granting refund where Modvat credit has been availed of 23.14
28. Department cannot put in the plea of 'unjust enrichment' to deny the refund
amount ignoring the Court order 23.14
xxx Cen-Cus Guide to All Cen. Ex. Procedures SRP
29. Illegal collection must be refunded to the person who paid duty 23.15
30. Refund of excise duty paid on petroldiesel and fuel oil Diplomatic Missions
in India 23.15
31. Grant of refund 23.15
32. Grant of refund claim when unjust enrichment is alleged 23.15
33. Refund if sanctioned must be paid 23.16
34. Revenue must refund money as per Collector's appeal order 23.16
35. New Section 11BB in CESA, 1944 23.16
36. Interest on Delayed Refunds 15% per annum 23.17
37. Interest on delayed refunds payable by the Deptt. 23.17
38. Refund Application (Form) Regulations, 1995 23.23
39. Action Taken on the recommendations 23.23
40. Settlement of Objects and reasons 23.24
41. Consumer Welfare Fund set up under Section 12C & 12D of the Central
Excises & Salt Act 1944 23.24
42. CWF Rules 23.25
43. The case of Collector of Customs 23.29
44. Refund–duty paid in excess under Mistake of law 23.29
45. Refund—Technicalities 23.30
46. Refund Writ Petition Unjust enrichment 23.30
47. Refund 23.30
48. Amended Section 11B 23.30
49. Refund—Limitation 23.30
50. Refund—Amended law 23.30
51. Refund 23.30
52. Refund—Mistake of law 23.30
53. Refund 23.31
54. Refund Section 11B 23.31
55. The case of Mafatlal Industries Ltd. 23.31
56. Ratios of some other important cases 23.31
57. Unjust Enrichment 23.32
58. Refund Claims—Disposal of—CEA: S. 11B 23.33
59. Refund—Grant of rebate claim notwithstanding appeal filed 23.34
60. Whether erroneous refund granted could be recovered by raising a
demand under S. 11A 23.34
61. Application of the doctrine of unjust enrichment to provisional assessment
cases 23.35
62. Applicability of unjust enrichment provision 23.36
63. The case of M/s. Solar Pesticide Pvt. Ltd. 23.36
64. Return of deposits made in terms of Section 35F of the Central Excise Act,
1944 23.38
65. Review of O-I-O No. 13/refund/Div. III/99 dated 26.5.2000 in case of M/s.
Gujarat Tractors Ltd. 23.38
66. Disposal of refund/rebate claims where application is pending at appellate
level 23.39
67. Disposal of refund/rebate claims 23.41
68. Return of deposits made in terms of Section 35F of the CEA, 1944 and
Section 129E of CA, 1962 23.42
69. Pre-audit/Post audit of refund/rebate claims 23.43
70. Time bar whether applicable in recovery of erroneous refund 23.44
Cen-Cus Details Contents xxxi
71. Retrospective application of Sec. 11AB of the CE Act 23.44
72. Non-payment of interest in refund/rebate cases which are sanctioned
beyond three months of filing 23.45
73. Grant of refund of duty on petrol supplied to President including diplomatic
officers and U.N. specialized agencies–sanctioning authority 23.46
74. Refund/rebate—Payment of any deposit/dues to assessee by Department
through crossed cheques. 23.46
75. Simplified procedure for sanction of refund of unutilised credit/rebate claims
in cases of export 23.47
76. Application of contents of Circular No. 682/73/2002-CX dated 19th
December, 2002 to exemption notification No. 39/2001-CE dated 31st July,
2001. 23.48

PART VII
ACCOUNTAL AND RECORDS

Chapter 24
ACCOUNTAL OF PRODUCTION OF EXCISABLE GOODS
1. Statutory provisions 24.1
2. BOPP Films 24.1
3. Carbon black 24.2
4. Confectionery, Cocoa Powder & Chocolates 24.2
5. Grey Cotton fabrics 24.2
6. Electric Batteries and parts 24.2
7. Footwear 24.2
8. Gases 24.3
9. Ingots 24.3
10. Jute manufactures 24.3
11. LPG cylinder 24.4
12. Loose Tea 24.4
13. Package Tea 24.4
14. Matches 24.4
15. Accounting, storage & clearance of scrap of metals 24.5
16. Soda Ash 24.5
17. S.O. Dyes 24.5
18. Synthetic Organic Dye-Stuff 24.6
19. Snuff 24.6
20. Wireless receiving sets 24.6
21. Steps for ensuring prompt and proper accounting of excisable goods 24.6
22. Invoices 24.7
23. Sodium silicate 24.7

Chapter 25
MAINTENANCE OF RECORDS
1. Every manufacturer who is manufacturing excisable goods 25.1
2. Private records 25.1
3. Meaning 25.3
4. Furnish the list of all records 25.3
xxxii Cen-Cus Guide to All Cen. Ex. Procedures SRP
5. Non-maintenance of daily stock account 25.3
6. The private records 25.3
7. Period for preservation of records 25.3
8. Maintenance of records by Cigarette Manufacturers 25.3
9. Cigarettes—Prescription of principal raw materials and maintenance of
daily account 28.8
10. Cigarettes--Accountal--Raw Material—Accountal of raw materials used in
the manufacture of cigarettes 25.9
11. Declaration regarding receipt of raw materials in the cigarette factories and
their verification by Central Excise Officers 25.11
12. Maintenance of record by Assessees for the visits paid by the C.Ex.
Officers to their factories 25.11
13. New Central Excise (No 2), Rules, 2001 25.12
14. Electronic maintenance of records and preparation of returns and
documents using computer 25.15
15. Opening of Personal Ledger Account 25.16
16. Account current and procedures relating thereto 25.16
17. PLA—Form 25.16
18. Credit and debit entry 25.17
19. PLA—prepared in triplicate 25.17
20. Credit and debit in account current 25.17
21. Deposit 25.18
22. No restriction exists with regard to any minimum amount 25.18
23. Where an assessee is required/chooses to pay duty consignment wise 25.18
24. Mutilations or erasures of entries once made in the PLA 25.18
25. Procedure for transfer of amounts in PLA 25.18
26. By First Stage and Second Stage dealers and pre-authentication of
invoices issued 25.21

Chapter 26
STATUTORY RETURNS REQUIRED TO BE FILED BY ASSESSEE
1. Statutory Returns are required to be filed by the assessee 26.1
2. The proformas 26.1
3. Monthly/Quarterly Return 26.9
4. Return -changes in Form E.R. 1 and E.R. 3 26.10
5. As duties payable on individual consignments 26.24
6. PLA Extracts 26.24
7. Manner of scrutiny of ER-1 and ER-3 returns by the Proper Officer 26.24
8. Manner and Checklist for scrutiny of returns filed by Assessee 26.30
9. Monthly Revenue figures to be supplied to the Range staff 26.35
10. Maintenance of Register 26.36
11. Scrutiny of returns under self assessment 26.38
12. Central Excise Computerisation—Instructions for discontinuing manual
reports 26.39
13. Guidelines for e-filing of Weekly Report by the major assessees 26.40
14. On-Line submission of certain information in respect of production,
clearance, revenue-liability etc. on a weekly basis by the major assesses 26.45
Cen-Cus Details Contents xxxiii
Chapter 27
EXCISE AUDIT 2000 (EA-2000)
1. Introduction 27.1
2. Further guidelines for implementation of EA-2000 27.1
3. Difference between EA-2000 and Conventional audit 27.10
4. Procedure of Excise Audit 2000 27.11
5. Audit Protocol 27.12
6. Computer-Aided Audit Program 27.13
7. Central Excise-Planning of Internal Audit 27.13
8. Central Excise-Covering all audits by Central Excise officers under EA-
2000 27.14
9. Revised Central Excise Audit Manual 27.14
10. Guidelines for selection of cases for Desk reviewed by Chartered/Cost
Accountant. 27.16
Chapter 28
DEPARTMENTALISATION OF REVENUE ACCOUNTS
1. Procedure 28.1
2. Scheme for collection of Revenue and payment of Refunds 28.1
3. T.R. 6 Form 28.2
4. Basic features of the new Scheme 28.2
5. After departmentlisation of accounts
6. Use of R.t. 6 challans 28.2
7. Computerisation of Accounts—Remittance of Central Excise duty—
Furnishing of running serial numbers, computer code numbers, etc., in the
TR-6 Challans 28.4
8. Scheme of 'one Bank-one Collectorate' to collect Excise and Customs
Revenue 28.5
9. Collection of Revenue for Central Board of Excise & Customs, and
adoption of revised pattern of 'One Bank-One Collectorate 28.5
10. The bank not to be changed before code number of the new branch of the
Bank is obtained from C.A.O. 28.8
11. Code Nos of the selected branch and of Focal Point Bank must be pre-
printed on T.R. 6. 28.8
12. Security deposit 28.9
13. Deposit of Central Excise Duties through Treasury Challans in the Bank 28.9
14. Accounts head—Classification of deposit of duty pending adjudication
under Sec. 35F. 28.9
15. Procedure to be followed for payment duty during closure of business 28.10
16. Non-verification of PLAs and Non-reconciliation of Revenue Receipts by
Chief Accounts Officers 28.10
17. Accounting of collection under "Duties on indigenous motor spirit” 28.11
18. Reconciliation of Revenue Receipts using computers 28.11
19. G-72 Revenue reconciliation using computers 28.12

Chapter 28A
ACCOUNT OF PRINCIPAL RAW MATERIALS
1. Introduction 28A.1
2. Important raw materials 28A.1
3. Raw material account 28A.1
4. Snuff 28A.6
xxxiv Cen-Cus Guide to All Cen. Ex. Procedures SRP
5. Electrical wires and cables 28A.6
6. Wire ropes and steel wire strand 28A.7
7. Metallised film 28A.7
8. Acetylene 28A.7
9. Tread rubber 28A.7
10. Matches 28A.7
11. Drilling Rigs 28A.7
12. Important raw materials 28A.7
13. Pan Masala 28A.8
14. Betel Nut Powder (Supari) 28A.8
15. Excisable Commodities 28A.8
16. Principal Raw Material for Excisable Commodities 28A.10

PART VIII
WAREHOUSING

Chapter 29
BONDED STORE ROOM
1. Proper Storage 29.1
2. Storage of non-duty paid sugar outside the factory premises 29.1
3. Important Instructions of the Board 29.1
4. Storage of non-duty paid goods outside the factory premises– 29.3
Chapter 30
WAREHOUSING PROCEDURE
1. Warehousing and removal 30.1
2. Warehousing - without payment of duty 30.1
3. Procedure governing the movement of goods 30.1
4. Central Excise Export Ware-housing Specifying conditions, 30.3
5. Receipt of goods in warehouse 30.6
6. Packing re-packing, labelling or re-labelling within the warehouse 30.6
7. Storage 30.6
8. Clearance of goods for export outside India 30.6
9. Diversion of goods for home-consumption 30.7
10. Waiver of physical warehousing in case of exigency 30.7
11. Providing of accommodation for the Officer 30.7
12. Export Warehousing—problems. 30.11
13. Export Warehousing-extension of facility in the district of Indore 30.12
14. Withdrawal of the warehousing facility for removal of petroleum products
without payment of duty from the refineries 30.12
15. Export warehousing facility to petroleum products —amendment in Circular
No. 581/18/2001-CX dated 29th June, 2001 30.14
16. Post-withdrawal of warehousing facility to petroleum products–issues 30.15
17. Discontinuation of removal of petroleum products from one warehouse to
another 30.17
18. Extension of Warehousing Period of Capital Goods imported by
EOU/EHTP/STP. 30.20
19. Discontinuation of removal of petroleum products from one warehouse to
another. 30.21
Cen-Cus Details Contents xxxv
20. Waiver of interest on re-export of warehoused goods 30.22
21. Export Warehousing- extension of facility in the taluka Ankleshwar in the
district of Bharuch in the state of Gujarat.-reg. 30.22
22. Export Warehousing- extension of facility to Navi Mumbai in the district of
Thane in the State of Maharashtra 30.23
23. Export Warehousing-specifying class of exporters under Sub-rule 2 of Rule
20 of the Central Excise Rules (No. 2) 2001 read with Notification No.
46/2001-CE(NT) dated 26th June, 2001 30.24

Chapter 31
INLAND CUSTOMS BONDED WAREHOUSES
1. Background 31.1
2. Warehousing stations. 31.2
3. Appointing of public warehouses. 31.2
4. Appointment of Public Bonded Warehouse 31.2
5. Warehousing 31.4
6. Grant of Private Bonded Warehouse 31.6
7. Removal of goods 31.7
8. Clearance 31.7
9. Clearance of Warehoused goods for exportation 31.7
10. Payments 31.7
11. Waiver of interest 31.8
12. In the case of perishable goods 31.8
13. Customs—Treatment of ware-housing 31.9
14. Transfer of imported goods for re-warehousing 31.9
15. Relevant date for calculations of Customs Duty 31.9
16. Grant of Manufacture of in-bond facility 31.10
17. Levy of interest on the Customs duty under Section 61 of the Customs Act 31.11
18. Warehousing of imported plant and machinery 31.13
19. Warehousing period 31.14
20. Grant of extension 31.15
21. Removal of goods 31.16
22. Special Period 31.16
23. Relevant date for calculation of Customs duty 31.16
24. Transfer of imported goods 31.17
25. Transfer of imported goods 31.17
26. Setting up of Private/Public Bonded warehouses 31.18
27. Transfer of imported goods for re-warehousing 31.20
28. Warehousing—Irregularities 31.20
29. Charging of interest 31.21
30. Charging of interest under Section 61 of the Customs Act, 1962—
Clarification. 31.21
31. Interest to be paid after expiry of 30 days 31.21
32. Alert Notice 31.22
33. Delegation of Board's power to Chief Commissioners 31.22
34. Ratios 31.23
35. Facility for permitting imports under DEPB Scheme 31.24
xxxvi Cen-Cus Guide to All Cen. Ex. Procedures SRP
PART IX
EXPORT UNDER CENTRAL EXCISE LAW

Chapter 32
EXPORT UNDER CENTRAL EXCISE LAW
1. Introductory 32.2
2. Export under claim for rebate. 32.2
3. Procedure for export to all countries except Nepal or Bhutan 32.3
4. Procedure for export to Nepal 32.6
5. Review of the working of the procedure 32.7
6. Dispatch of goods by self-sealing and self-certification 32.11
7. Examination of goods at the place of export 32.13
8. Sanction of claim for rebate by Central Excise 32.13
9. The benefit of input stage rebate 32.15
10. The Assistant Commissioner of Central Excise should point out deficiency 32.16
11. The manufacturer shall maintain register of duty paid materials brought to
the factory 32.16
12. Checks by Customs Officers 32.16
13. Export of Tea under Claim of Rebate 32.17
14. Procedure 32.17
15. Export without payment of duty 32.17
16. The conditions and procedures relating to export without payment of duty 32.17
17. Notification No. 42/2001-CE(NT) 32.41
18. Special procedure for store for consumption on board an aircraft on foreign
run 32.41
19. Condition of Rebate 32.42
20. Clarification regarding supplies of excisable goods, including fuel, without
payment of duty as ship's stores for consumption on board a vessel bound
for any foreign port 32.42
21. Re-import of goods of Indian Origin which were earlier exported for the
purpose of repairs, reconditioning, reprocessing, refining, remaking etc.
and re-export thereafter 32.43
22. Simplification of Export Procedure 32.45
23. Exports—Natural packing in cases of polyester viscose blended yearn has
been allowed 32.47
24. Packing, Marking, etc. of goods to be exported 32.47
25. Export of consignments in parts 32.47
26. Valuation of export goods 32.48
27. FOB value declared in AR 4 is assessable value when goods are diverted
for home consumption 32.48
28. Re-import of exported goods for repairs, etc. under Rule 173MM—
Assistant Commissioner to grant permission 32.48
29. Modification of simplified export procedure 32.49
30. Export of goods under claims of rebate 32.49
31. Problems faced by the Merchant Exporters of Cotton 32.51
32 Exports of fabrics after cutting and packing under claims of rebate 32.52
33. Central Excise procedures for exports 32.54
34. Problems faced by exporters of man-made fabrics/sarees in respect of
rebate claims 32.54
Cen-Cus Details Contents xxxvii
35. Payment of rebate by cheque when duty paid through RG-23C Part II 32.55
36. Rebate of Central Excise duty under Rule 12(1)(b) 32.55
37. Speedy acceptance of proof of exports in respect of goods exported
through Inland Container Depots/Customs Freight Stations—Special
Procedure 32.56
38. Production of certificate regarding non-availment of Modvat benefit 32.58
39. Difficulties in clearances of intermediate goods duty free for use in export
goods 32.59
40. Cash rebate of duty paid from 'Deemed credit register' on processed
fabrics 32.60
41. Cash rebate of duty paid from 'Deemed credit register' on processed
fabrics 32.60
42. Grant of rebate of Central Excise Duty on non-alloy steel ingots and billets
and non-alloy steel hot re-rolled products 32.61
43. Grant of rebate of Central Excise Duty under Rule 12(1)(b) 32.62
44. Whether 'Disclaimer Certificate' is required when export is effected as per
procedure contained in Board's Circular No. 294/10/97-CX. dt. 30.10.1997 32.62
45. Exporters declaring CIF value/FOB value instead of factory gate value 32.63
46. Rebate of excise duty paid on processed textile fabrics 32.63
47. Rebate of excise duty paid on processed textile fabrics notified under
section 3A of the Central Excise Act 32.64
48. Rebate of excise duty paid on ingots and billets of non-alloy steel and hot
re-rolled products of non-alloy steel notified under section 3A 32.65
49. Formula for calculating rebate of excise duty paid on processed textile
fabrics in terms of Notifications No. 11/99-CE (NT) to No. 13/99-CE(NT) 32.66
50. Rebate of duty paid on processed textile fabrics under section 3A 32.67
51. Rebate of excise duty on tea under Rule 12(1)(b), exported by
Manufacturer/Merchant-exporters after blending/ packaging 32.67
52. Rebate of excise duty paid on ingots and billets of non-alloy steel and hot
re-rolled products of non-alloy steel notified under section 3A of the Central
Excise Act, 1944—Whether rebate claims can be filed by merchant-
exporters 32.69
53. Whether rebate-sanctioning authority may re-determine the amount of
rebate in certain cases 32.69
54. Acceptance of proof of export by the Excise Department 32.70
55. Expeditious acceptance of bond for exports without payment of duty 32.71
56. Simplified export procedure for exempted units 32.71
57. Storage and transshipment of excisable goods 32.74
58. Action to reduce transaction cost 32.75
59. Simplification of Export Procedure 32.75
60. Export Procedure—Simplification of—Corrigendum 32.77
61. Procedure relating to proof of export and to re-credit 32.78
62. Executed by Manufacturer Exporters with Maritime Commissioner 32.78
63. Furnishing of examination report 32.79
64. Self–sealing of export goods 32.79
65. Procedure for export under claim of rebate or under bond 32.80
66. Export of resultant goods manufactured by using goods obtained
without payment of duty under notification No. 43/2001-CE(NT) 32.80
67. Export of resultant goods manufactured by using goods obtained without
payment of duty under NTF.NO. 43/2001-CE(NT), DT. 26/06/2001 32.81
xxxviii Cen-Cus Guide to All Cen. Ex. Procedures SRP
68. Exemption of declaration of export of value not exceeding US $ 25,000/- in
prescribed forms—reg. 32.82
69. Non acceptance of Pre-Shipment Inspection Certificate reg. 32.82
70. Use of Tamper Proof Bottle Seals on Containerized Cargo for Export 32.83

Chapter 33
PROCEDURES FOR EXPORTS TO NEPAL AND BHUTAN
1. Procedure for exempt to Nepal 33.1
2. Conditions of export to Nepal 33.1
3. Procedure for export to Nepal 33.1
4. Nepal Invoice 33.2
5. Procedure at the Land Customs Station 33.3
6. Procedure to be followed by the Directorate General of Inspection,
Customs and Central Excise (Nepal Refund Wing), New Delhi 33.4
7. Rebate of excise duty on exports to H.M.G. Nepal 33.4
8. Export to Nepal when duty is paid provisionally or under protest 33.5
9. Procedure for export of excisable goods to Bhutan 33.5
10. Indo-Bhutan Agreement on Trade and Commerce 33.6
11. Export to Bhutan, Exit/entries of Fulbari and Deosori to be replaced by
Dhubri and Hatisar 33.8
12. Export of Excisable Goods under Bond 33.8
13. Procedure for Export to Nepal 33.16
14. Declaration of Jaigaon and Chamurchi 33.17
15. Import from and Export to Nepal—Phulbari Land Customs Station—Indo-
Nepal Treaty of Transit 33.17
16. Export of Nepalese Cargo to Bangaladesh—Export and Import through the
new transit route via Fulbari 33.19
17. Export of Nepalese Cargo to Bangladesh—Corrigendum 33.20
18. Procedure for movement of import and export cargo in transit to and from
Nepal 33.21
19. Movement of Transit Goods to and from Bangladesh—Permission only
through new route. 33.21
20. Nepalese traffic-in-transit to and from Bangladesh through specified route 33.22
21. Procedure relating to exports to Nepal. 33.22
22. Export of goods to Nepal or Bhutan by merchant exporter in terms of
Notification No. 45/2001-CE (NT) dt. 26.6.2001 33.22
23. CE-Export of goods under Bond to Nepal and Bhutan 33.23
24. Bank guarantee for import by Nepalese importers 33.23

Chapter 34
100% EOU, EHTP, STP
1. 100% Export Oriented Units are those units which under-take to export 34.2
2. Working of 100% E.O.U's. 34.2
3. Excisable goods when brought into an approved factory for manufacture of
articles for 100% export are exempt from duty. 34.16
4. Items permitted to be imported by an EOU/EPZ/EHTP/STP Units. 34.17
5. Procedure for clearance of goods from 100% EOU for job work out side the
unit. 34.17
Cen-Cus Details Contents xxxix
6. 100% EOU/EPZ/EHTP units—Permission to send out goods for job work
outside the unit. 34.19
7. Procedure for DTA slabs by 100% EOUs 34.20
8. Administrative control over the 100% Export Oriented Units (EOU)—
Instructions regarding. 34.21
9. Clearance of Samples from EOU/EPZ/EHTP/STP units for sending to DTA
and for Export. 34.24
10. Guidelines for setting up of EPZ. 34.25
11. Clearance of Personal Computers from EOU/EPZ/STP/EHTP Units for
Installation in their Administrative/Registered Office Outside Bonded
Premises. 34.27
12. Difficulty being faced by EOU/EPZ/EHTP/STP units in regard to
replacement of goods exported or imported and found damaged or
defective or otherwise unfit for use. 34.27
13. Method of Calculation of Duty Leviable in Terms of Central Excise
Notification No. 2/95-CE, Dated 4.1.1995 on Goods Cleared into Domestic
Tariff Area by EOU/EPZ/ETP/STP Units under Para 9.9(b) of the Exim
Policy. 34.28
14. Joint Monitoring of the Performance of EOUs and EPZ/SEZ units by the
Development Commissioner and the Commissioner of Customs/Central
Excise. 34.29
15. Joint Monitoring of the Performance of EOUs and EPZ/SEZ units by the
Development Commissioners and the Commissioner of Customs/Central
Excise 34.30
16. Valuation of Plastic Waste & Scrap by EOU/EPZ/SEZ Units Sold/Cleared
to other EOU/EPZ/SEZ Units or to the DTA Units. 34.30
17. Taking Out of Laptop Computers Outside the Bonded Premises of EOUs
and EPZ/EHTP/STP/SEZ units. 34.31
18. DTA sales by 100% EOUs—eligibility for the benefit of Notfn. No. 8/97-CE,
dt. 1.3.1997—Clarification regarding. 34.32
19. Transfer of Goods Imported/Procured by EOUs/EPZ/STP/EHTP to SEZ
Units. 34.32
20. Removal of goods by 100% EOUs to DTA—Non-levy of duty under Section
3(1) of Central Excise Act, 1944. 34.35
21. New Exim Policy 2002-2007 and Handbook of Procedures, 2002-2007-
Amendments in the Notifications relating to EOU/EPZ/ETHP/STP/SEZ
schemes 34.35
22. Supply of Goods by units against Special Entitlement of Duty Free Import
of Goods—EOU/EPZ/SEZ. 34.40
23. Transfer of Unutilized Raw Material from one EOU/EPZ/STP/EHTP Unit to
another EOU/EPZ/STP/EHTP Unit under Paragraph 6.16 of the Policy 34.41
24. Collection of cost recovery charges for EOUs—option to pay Merchant
Overtime. 34.42
25. Withdrawal of Board’s Circular No.618/9/2002-CX, dated 13-2-2002-
Removal of Goods by 100% EOU to DTA-Clarification Regarding Levy of
duty on Removal of Goods by 100% EOU to DTA 34.42
26. Foreign Trade Policy (FTP) announced on 31.8.2004—Amendment of
notifications relating to EOU and Gems and Jewellery Export Promotion
Schemes. 34.43
27. DTA Sales Procedure to be followed by EOUs/EHTPs/ STPs 34.50
28. Fast Track Clearance Procedure 34.54
29. DTA sale on third party exports by EOUs – Clarification thereon 34.60
xl Cen-Cus Guide to All Cen. Ex. Procedures SRP
30. Introduction of Duty Free Import Authorization (DFIA) Scheme and
Changes made in Existing Export Promotion Schemes –regarding 34.61

Chapter 35
FREE TRADE ZONES
1. To promote exports 35.1
2. Amendment of Section 3 35.1
3 Removal of goods by a hundred per cent. export-oriented undertaking for
domestic tariff area 35.1
4. EPZs to be Free Trade Zones 35.1
Chapter 36
DRAWBACK CLAIMS
1. Background Note on Duty Drawback under Customs & Central Excise 36.1
2. All Industry Rates of Duty Drawback, 2004-2005—Reg. 36.2
3. Admissibility of Duty Drawback in Respect of Supplies Effected by DTA
Units to Special Economic Zones—reg. 36.5
4. Fixation of Brand Rate of Duty Drawback. 36.6
5. Admissibility of All Industry Rates of Duty Drawback on Export Goods
Manufactured from out of Inputs, some of which are Non-Duty Paid. 36.9
6. All Industry Rates of Duty Drawback, 2005-06—Reg. 36.9
7. Applicability of drawback on exports in CKD/SKD condition—regarding. 36.13
8. Factoring of duty incidence on HSD and furnace oil in Brand Rates and
Special Brand Rates of Duty Drawback determined under Rule 6 and Rule
7 of the Customs & Central Excise Duties Drawback Rules, 1995—reg. 36.14
9. All Industry Rates of Duty Drawback, 2006-07-Reg. 36.15
10. Computation of Value Addition where some Materials are Supplied Free of
Cost – Determination of Drawback under Rule 6 or Rule 7 of Drawback
Rules-Reg. 36.19

PART X
BONDS
Chapter 37
BONDS
1. The term bond 37.1
2. Types of bonds. 37.1
3. Nature of Bonds. 37.1
4. Execution of bonds. 37.2
5. Signing of bonds 37.3
6. Bond executed by partnership firms. 37.3
7. Undertakings. 37.3
8. Types of securities. 37.3
9. Guarantee bonds 37.4
10. Format 37.7
11. Return of securities. 37.9
12. Interest accruing on securities. 37.9
13. Execution 37.9
14. Amendment of bonds. 37.10
Cen-Cus Details Contents xli
15. B-1 Bonds. 37.10
16. Bond to be executed by Match manufacturers. 37.10
17. B-2 Bond. 37.10
18. B-3 Bond. 37.11
19. Bonds—Execution of Bank Guarantee 37.11
20. Stamp duty on Central Excise Bonds 37.11
21. Security bank 37.11
22. Furnishing of Bank Guarantee for surety bond. 37.11
23. Furnishing of security 37.11
24. Safe guards 37.11
25. A fresh Bank Guarantee 37.12
26. Bank Guarantee furnished as surety. 37.12
27. Bonds—Furnishing of Bank Guarantee as security. 37.12
28. Requirement of fresh Bank Guarantee on expiry of validity period of old
one. 37.12
29. Ceiling of amount of B-1 Bond. 37.13
30. Security deposit. 37.13
31. Dispensing 37.13
32. Fixation of security for bonds 37.13
33. Bonds—Execution of bond—Furnishing of bank guarantee. 37.13
34. Bond amount not to be forfeited if proof finally furnished. 37.13
35. Execution of bond 37.13
36. Bonds—Proper Officer for acceptance of B-1 Bond 37.14
37. Bank Guarantee 37.14
38. Export under Bond and under claim of rebate—Amendment in notification
No. 40/2001-CE(NT) and No. 42/2001-CE(NT), both dated 26.06.2001—
Change in the definition of ‘Maritime Commissioner’ 37.15
39. Payment of Additional Excise Duty and Special Additional Excise Duty on
Motor Spirit and High Speed Diesel exported under Bond 37.15
40. Simplified bond module covering both custodianship and transhipment–
multiplicity and multi-utilisation of bond—Reg. 37.16
41. Payment of Addl Excise Duty 37.17

PART XI
COMPOUNDING OF OFFENCES

Chapter 38
COMPOUNDING OF OFFENCES

PART XII
OFFENCES AND REMEDIES

Chapter 39
OFFENCES AND PENALTIES
1. Offences 39.1
2. The statutory provisions 39.1
3. Offences by companies 39.3
xlii Cen-Cus Guide to All Cen. Ex. Procedures SRP
4. Heavy Punishment 39.3
5. Penalty 39.3
6. Penalties under Central Excise Law 39.4
7. General Penalty 39.4
8. Penalty on persons associated 39.5
9. Penalty for wrong availment of CENVAT Credit Rule 13 39.5
10. No penalty can be imposed unless mala fide is proved 39.5
11. Offence—Penalty can be imposed even where goods released
provisionally on bond 39.6
12. Penalties cannot be imposed nor goods confiscated with retrospective
effect when acts or omissions were lawful at the time they were performed
or made, but subsequently made unlawful 39.6
13. Penalty for misdeclaration under Compounded Levy 39.6
14. Offences by companies 39.6
15. Assessees cannot be penalised on mere surmises and without proper
proof and evidence 39.7
16. Minor lapses 39.8
17. There is no clandestine removal if facts about manner of removal are not
concealed 39.8
18. Demand show cause notice 39.8
19. Penalty for failure to collect or pay service Tax 39.9
20. Penalty for failure to furnish prescribed Return 39.9
21. Penalty for suppressing value of taxable service 39.9
22. Penalty for failure to comply with Notice 39.9
23. Penalty not to be imposed in certain cases 39.10
24. Ratios of some important case law are given, in brief, below 39.10
25. Penalty 39.11
26. Default in monthly payment of duty- Action to recover the due 39.12
27. Penalty for specific offences -- Amendment to Central Excise Act, 1944—
regarding 39.13

Chapter 40
SEARCH AND SEIZURES
1. Introduction 40.1
2. The provisions relating to search 40.3
3. Rules 22 & 23 of the Central Excise (No.2) Rules, 2001 40.3
4. Authorizationto the search 40.3
5. Seizures 40.3
6. Power to arrest 40.3
7. Conditions which are a pre-requisite and which precede a search 40.3
8. Requirements at the time of search & seizure 40.4
9. Manner of Search 40.4
10. Conduct of officers during search/seizure operation 40.4
11. Obstruction during search 40.5
12. Time of visit 40.5
13. Searches under Sec. 105 of the Customs Act 40.5
14. Illegality of search does not vitiate seizure of contraband articles and
subsequent trial of the case 40.6
15. Search Warrant 40.6
Cen-Cus Details Contents xliii
16. Things seized 40.6
17. Specified goods to be disposed off immediately after seizure, in the
prescribed manner. 40.7
18. Payment of rent 40.7
19. Statement of licensee recorded7by seizing officers 40.7
20. Admissibility of Confessions 40.8
21. Recording of time in the statements 40.8
22. Principles governing onus of proof in town seizures and change in the
method of investigation 40.8
23. The power to release seized goods 40.10
24. Seizure of goods when can be effected. 40.10
25. Seizures u/s 123 of the Customs Act—Mention of reasonable belief in
show cause notice 40.12
26. Searches & Seizures 40.12
27. Corroboration 40.14
28. Search, seizure or confiscation of money on mere suspicion is illegal. 40.14
29. Suspicion 40.14
30. Seizure must be physical, and not symbolic 40.14
31. A Commissioner or Assistant Commissioner cannot stay the operation of
an order-in-appeal 40.14
32. Seized goods 40.14
33. Statements recorded 40.15
34. Reasonable Belief. 40.15
35. Seizure is invalid 40.15
36. Seizure is not a pre-conditions 40.15
37. Vicarious liability 40.15
38. Enforcement Officer 40.15
39. Search/Seizure of excisable goods by Police Officers 40.15
40. Provisional release 40.15
41. The ratios 40.16
42. Storage and safe custody 40.18
43. Release of seized goods 40.26

Chapter 41
SUMMONS
1. Power to summon 41.1
2. Power to issue summons 41.1
3. Meaning of Summons 41.1
4. Service of Summons 44.2
5. Service through Post Office 41.2
6. Summons 41.2
7. Statement to be obtained generally during working hours; Persons
summoned should not be detained for long period 41.2
8. Attendance of persons summoned 41.3
9. Issue of summons 41.3
10. Statement not compulsory 41.4
11. Compliance of Summons 41.4
12. Summons must relate to the inquiry 41.4
xliv Cen-Cus Guide to All Cen. Ex. Procedures SRP
Chapter 42
EVIDENCE
1. Evidence Act 42.1
2. Observance of Principles of Natural Justice 42.1
3. Rebuttal of Relied upon documents 42.1
4. Evidence 42.1
5. Affidavit in departmental proceedings 42.2
6. Production of documents as evidence 42.2
7. Admissibility of Microfilms 42.2
8. Statutory records 42.3
9. Statement made before Excise officers 42.4
10. Statement of licensee recorded 42.4
11. Confessions recorded 42.4
12. Recording of time 42.5
13. Corroboration is not required to accept a statement recorded under the
provisions of the Customs Act. 42.5
14. Suspicion 42.5
15. Ratios 42.5

Chapter 43
CONSEQUENCES OF PROCEDURAL INFRACTIONS UNDER THE EXCISE LAW
1. It is now well established law that penalty is not warranted for minor
procedural infractions 43.1
2. Seizures on flimsy and technical grounds 43.1
3. Non-filing of declaration 43.3
4. Technicalities of procedures or otherwise cannot deny statutory benefit 43.3
5. Technicalities do not justify demand 43.3
6. An order imposing penalty 43.3
7. Penalty is not justified 43.3
8. Technical 43.4
9. At any rate, according to the learned counsel the imposition of penalty was
unwarranted. 43.4
10. Where irregularities are of a trivial nature 43.4
11. Technical breach 43.4
12. Technicalities do not justify demand 43.4
13. For technical offences a small penalty is good enough to warn the dealer
for future 43.4
14. Technicalities 43.4
15. Chapter X procedure not followed due to wrong classification of subjected
goods by Department—It is to be dispensed with 43.5
16. Departmental instructions 43.5
17. Technicalities 43.5
18. Ratios 43.5
Chapter 44
SHOW CAUSE NOTICE
1. Principles of natural justice 44.1
2. A show cause notice 44.2
3. In view of the aforesaid, a show cause notice 44.2
Cen-Cus Details Contents xlv
4. Period for issue 44.2
5. Reply 44.2
6. Power of Adjudication of Central Excise Officers under Section 33 and
Section 11A 44.3
7. Show Cause Notice 44.5
8. Validity 44.5
9. Validity or otherwise of SCN 44.5
10. Imposition of penalty 44.5
11. Removal after regular procedure 44.5
12. Show Cause Notices must properly spell out grounds 44.5
13. Indisputably the burden. 44.6
14. Demand 44.6
15. Limitation 44.6
16. Show cause notice can be issued by lower competent officer for adjudication
by empowered officer 44.6
17. Show cause notice cum demand of duty is improper 44.6
18. Show cause notice not signed by Collector 44.6
19. Limitation 44.6
20. Allegation 44.6
21. Show cause notice issued against officers of the company who are not
concerned with the working of the factory is invalid. 44.6
22. Show cause notice (new) cannot replace the earlier one. 44.7
23. Show cause notice issued 44.7
24. Show cause notice 44.7
25. Reasons 44.7
26. SCN issued after Remand 44.7
27. SCN issued under Sections 110(I) and 124 of Customs Act 44.7
28. Power 44.7
29. Issue of Show Cause Notice by Collector-I instead of Collector-II 44.7
30. Show Cause Notice—To whom to be issued 44.7
31. Show Cause Notice—Service 44.8
32. Show Cause Notice—Service on Agent 44.9
33. Show Cause Notice—Service on employee 44.9
34. Show Cause Notice—Effect of invalid service 44.9
35. Ratios 44.10
36. Mechanism for early dispute resolution 44.18
37. Issuance of Show Cause Notice 44.18
38. Issuance of Show Cause Notice for recovery 44.19
39. Issue 44.19

Chapter 45
ADJUDICATION OF OFFENCES UNDER CENTRAL EXCISE LAW
1. Central Excise—Delay in issue of Adjudication order/Appellate order after
personal hearing 45.1
2. Adjudication of cases remanded by the Appellate Authorities for denovo
adjudication 45.2
3. Amendment to Circular No 762/78/2003-CX dated 11/11/2003. 45.2
4. Power of adjudication 45.3
5. Meaning of Adjudication 45.3
xlvi Cen-Cus Guide to All Cen. Ex. Procedures SRP
6. Quasi-Judicial Orders 45.3
7. Powers of adjudication 45.4
8. Central Excise Officers 45.6
9. Recovery of Government dues 45.6
10. Principles of natural justice 45.6
11. In view of the aforesaid, a show cause notice 45.6
12. Reply to show cause notice 45.7
13. Section 14 of the Central Excises Act 45.7
14. Personal hearing 45.7
15. Issue of Adjudication/Appellate Orders 45.8
16. Delay in issue 45.8
17. Stay order 45.8
18. Extension of period for payment 45.8
19. Correct wording of Show-Cause Notice and Adjudication Orders 45.9
20. Issue of show cause notice 45.9
21. Adjudication order/Appellate Order becomes final if not appealed against 45.10
22. The burden of proving the allegations 45.10
23. Show Cause Notice is a must before passing appealable order 45.10
24. Review Show Cause Notice 45.10
25. Show Cause Notice is a must 45.10
26. Requisites 45.11
27. An officer connected with raids and investigations also adjudicating on
alleged tax- 45.11
28. Argument 45.11
29. Time period for finalisation of Adjudication is 6 months 45.11
30. Check list for Adjudication 45.12
31. Summary disposal 45.12
32. Redemption fine 45.12
33. It should be noted that the above provisions are mandatory in nature 45.13
34. Where confiscated goods are not available for redemption 45.13
35. Redemption fine 45.13
36. Instructions on imposing redemption fine 45.13
37. Provisional release of seized vehicles 45.14
38. Issue of corrigendum 45.15
39. Observance of Principles 45.16
40. Investigation, issue and adjudication 45.16
41. The ratios of some important cases 45.17
Chapter 46
CONFISCATION
1. Penalty 46.1
2. The Dictionary meaning of the word 'Confiscate' 46.3
3. Goods are not liable to confiscation 46.3
4. Liability to Confiscation 46.3
5. Mis-declaration 46.3
6. Search, seizure or confiscation of money on mere suspicion is illegal 46.3
7. Burden of proof 46.3
8. Conveyance pledged with banks 46.3
9. Confiscation of conveyance 46.3
Cen-Cus Details Contents xlvii
10. Goods which are not properly accounted for are liable to confiscation 46.3
11. Goods released against Bond and not physically available. 46.3
12. Confiscation is legitimate 46.3
13. Where Motor Vehicle financier is owner 46.3
14. Confiscation is not tenable if goods were exempt. 46.4
15. In case of confiscation, option to redeem on payment of fine must be given. 46.4
16. Goods not accounted 46.4
17. Confiscation, penalty and fine 46,4
18. Confiscation proceedings are invalid 46.4
19. Confiscated property 46.4
20. Confiscation was revoked 46.4
21. Sales Tax 46.4
22. Confiscation set aside for non-issue of show cause notice 46.4
23. Confiscation set aside in view of precedent. 46.4
24. Compensation 46.4
25. Silver articles/ornaments are not bullion 46.4
26. Statutory presumption 46.4
27. Transport 46.4
28. Confiscation of transport 46.4
29. Confiscation is not justified 46.4
30. Confiscation is not justified for technical lapses. 46.4
31. Confiscation was upheld as value misdeclared. 46.5
32. Vicarious liability 46.5
33. Blended Guar Dal Powder 46.5
34. Adjudicating authority accepts 46.5
34. Duty (Customs) Free 46.5
35. Foreign Currency 46.5
36. Mis-declaration of imported goods alleged 46.5
37. Misdeclaration 46.5
38. Redemption fine and imposition of penalty 46.5
39. Vessel—Smuggling 46.6
40. Waste and Scrap 46.6
Chapter 47
PRINCIPLES OF NATURAL JUSTICE
1. The principles of natural justice 47.1
2. When principles of natural justice have been violated 47.2
3. Natural justice 47.4
4. Natural justice 47.4
5. Principles of natural justice are violated if the assessee is not associated
with the investigations 47.4
6. Opportunity 47.4
7. Not replying to the request 47.4
8. Natural justice—Quasi-judicial function 47.4
9. Order 47.4
10. Principle of natural justice 47.4
11. Failure to supply 47.4
12. Case not to be decided without fixing a date 47.4
xlviii Cen-Cus Guide to All Cen. Ex. Procedures SRP
13. The principles of natural justice are violated 47.5
14. Speaking orders—Adjudicating authorities must fully answer 47.5
15. Non-supply of documents 47.5
16. Orders 47.5
17. Findings 47.5
18. No hearing necessary for rejecting appeals 47.6
19. Cross-examination of witnesses 47.6
20. Failure to supply 47.6
21. There can be no demand without a prior show cause notice 47.6
22. When there are serious questions affecting the rights of parties, the High
Court should not, or should not seem to, rush through disposing of the
revision petition by not hearing counsel specially when they did not have
proper assistance for hearing 47.6
23. Detention is illegal 47.6
24. The Collector has also based his decision on classification 47.6
25. Adjudication order passed without show cause notice 47.6
26. Suspicion is no proof 47.7
27. Hearing must be effective and not a mere eye wash 47.7
28. Assistant Collector allowed to withdraw his order 47.7
29. Adjudicated 47.7
30. Natural justice 47.7
31. Collector has not allowed inspection of documents and other facilities 47.7
32. Not speaking order which does not give reasons cannot hold 47.7
33. The quasi-judicial nature 47.7
34. Demand 47.12
35. Denial 47.12
36. Departmental instructions must be supplied 47.12
37. Disclosure of information 47.12
38. Discretion to be exercised judicially 47.12
39. There is no statutory obligation 47.12
40. Documents not supplied 47.12
41. Disposal of appeal 47.12
42. Judgment dictated 47.12
43. Order 47.12
44. Opportunity for rebuttal is a must 47.12
45. Orders must be speaking, covering all points raised 47.13
46. Non speaking order 47.13
47. Plea 47.13
48. Natural Justice 47.13
49. Natural Justice 47.13
50. Writ—Alternative remedy 47.13
Chapter 48
CROSS-EXAMINATION OF WITNESSES
1. Principles of natural justice 48.1
2. Cross-examination 48.1
Cen-Cus Details Contents xlix
Chapter 49
CONNIVANCE, ABETMENT
1. Abetment 49.1
2. Meaning 49.1
3. Statutory provisions 49.1
4. Rule 26. Penalty for certain offences 49.2
5. The scope of the term 'abet' 49.2
6. Act of abetment 49.2
7. Guilty of abetment 49.2
8. Ratios 49.2
Chapter 50
BENEFIT OF DOUBT

Chapter 51
EXPERT OPINION
1. Chemical Examiner's report 51.1
2. Indian Standard Institution 51.1
3. Expert Opinion 51.2
4. Expert Opinion is acceptable if consistent 51.2
5 Expert opinion can decide only technical aspects, not Tariff Entry 51.2
6. Chief Chemist's test report 51.2
7. Entire opinion 51.2
8. Expert Trade opinion is necessary 51.2
9. Expert opinion only can be relied upon 51.2
10. I.S.I. 51.2
11. Good guide for classification 51.2
12. Authority of B.T.N. 51.2
13. Harmonised System of Nomenclature 51.2
14. Authority of ISI is not necessarily binding 51.2
15. Expert Opinion 51.2
16. Cross examination must be allowed of expert opinion 51.3
17. Expert Opinion and other evidence 51.3
18. Chemical Examiner 51.3
19. Chief chemist/chemical examiner 51.3
20. Chemical report has only prospective application 51.3
21. Expert's Opinion 51.3
22. Expert Opinion not supplied 51.3
23. Chief Chemist's report 51.3
24. Technical Opinion 51.3
25. Findings 51.3
26. Expert Opinion not backed by known authorities 51.3
27. Test report 51.3
28. Synthetic hard waste 51.4
29. Classification—Entitlement of Modvat—Ethyl Chloride IP. 51.3
30. Classification–CTH 84.28 51.3
31. “Columns” used in Chemical industry for distillation etc. 51.4
32. Filament fabric 51.4
l Cen-Cus Guide to All Cen. Ex. Procedures SRP
Chapter 52
REPEAL

Chapter 53
PROSECUTION
1. The provisions regarding prosecution 53.1
2. The offences 53.2
3. Section 9AA of CEA deals with offences by Companies 53.2
4. Customs, Excise and Gold (Control) Appellate Tribunal 53.3
5. Complaint against petitioners 53.3
6. Company directors 53.3
7. Time 53.3
8. Benefit 53.3
9. That the petitioner was involved in smuggling activities cannot lead to the
conclusion 53.3
10. Specific allegation
11. Guidelines 53.3
12. Making Director General of Anti-Evasion competent authority 53.4
13. Commission of Offence–Re-import of alleged exported goods 53.4

PART XIII
ADJUDICATION OF CASES

Chapter 54
ROLE OF CIVIL COURTS IN CENTRAL EXCISE MATTERS
1. Scope 54.1
2. Jurisdiction 54.1
3. Claim–refund of duty 54.1
4. Jurisdiction–excluded in 54.1
5. Jurisdiction circumstances 54.2
6. Period of Limitation 54.5
7. Limitation 54.5
8. Matter of search and seizure 54.5
9. Jurisdiction–imposition of penalty or confiscation of goods 54.5
10. Built in CESA 54.5
11. Ratios of some of the cases 54.5
Chapter 55
THE PRINCIPLE OF RES JUDICATA
1. Dictionary meaning of Res judicata 55.1
2. Change 55.1
3. Earlier decision in a previous assessment 55.1
4. Unless new matter distinguished, earlier decision on similar issues, holds
good 55.1
5. "The appellants' eligibility 55.1
6. "Even if the order of the original authority 55.1
7. Res judicata 55.1
Cen-Cus Details Contents li
8. Res judicata bars adjudication on plea 55.1
9. Department is estopped 55.2
10. Estoppel 55.2
11. Interlocatory stay order 55.2
12. Stay refund—Fresh application permissible 55.2
13. Res judicata 55.2
14. Resjudicata Dealer's Commission 55.2
Chapter 56
GENERAL PRINCIPLES OF INTERPRETATION OF TAX STATUTES
1. Leading cases 56.1
2. Trade Parlance Prevails 56.32
3. Benefit of ambiguity—Interpretation. 56.32
4. Interpretation 56.32
5. Resort should be had not to the dictionary meaning, but to the popular
meaning 56.32
6. Reference on matters involving interpretation of statutory provisions or the
policy provisions or the scope of notification to the Board. 56.34

Chapter 56A
DISPUTES BETWEEN PUBLIC SECTOR UNDER TAKINGS
AND GOVERNMENT DEPARTMENTS
1. In matters of disputes between public undertakings of Central Government 56A.1
2. In the case of Oil and Natural Gas Commission 56A.1
3. In the case of Oil And Natural Gas Commission reported in 1995 (58)ECR
241 (SC), the Supreme Court passed the following 56A.2
4. Resolving of Disputes between Public Sector Undertakings and the
Government Departments 56A.4
5. Eligibility 56A.4
6. It is reported that there is a very tardy disposal by the High Power 56A.6
7. In the light of the aforesaid, a special impasse has arisen in regard to
interest on delayed payment 56A.7
8. Public undertaking 56A.7
9. Realisation of Dues 56A.7
10. Settlement of Disputes between one Govt. Department and another and
one Govt. Department and a Public Enterprise and one Public Enterprise
and another. 56A.8
11. Disputes between Customs and Central Excise Department and PSU 56A.8
12. Disputes between CBEC and PSUs—Clearance by the Committee on
Disputes. 56A.9
13. Settlement of dispute. 56A.9
14. Dispute between the Department and PSU—COD clearance—requirement
of—reg. 56A.11
15. Settlement of Disputes between the Government Department and another
and one Government Department and a Public Enterprises and Public
Enterprises and another. 56A.11
16. Settlement of dispute between the Government Department and Public
Sector Undertaking—reg. 56A.13
17. Proforma 56A.13
lii Cen-Cus Guide to All Cen. Ex. Procedures SRP
PART XIV
REMEDIES

Chapter 57
LIMITATION
1. Scope 57.1
2. Claim 57.2
3. Limitation of time of 6 months is from date of payment of duty, and not
finalisation of RT 12 57.2
4. Limitation 57.2
5. The limitation of 3 years under the Indian Limitation Act will commence
from the date the mistake is known by the payer 57.2
6. Limitation for refund claim for duty illegally levied under mistake of law
starts from the date of discovery of mistake, and is three years from that
date 57.3
7. Limitation for refund claims is computable from the date of payment of duty
and not from the date of completion of assessment on RT-12 returns. 57.3
8. Limitation 57.3
9. Limitation for recovery of refund 57.3
10. Limitation Act does not apply to cases covered under the Central Excises &
Salt Act 57.3
11. Limitation (extended) is inapplicable if not alleged in show cause notice 57.3
12. Limitation—runs from date of clearance unless otherwise specified 57.4
13. Limitation—Extended period not invokable in the absence of allegation of
suppression of facts 57.4
14. Limitation inapplicable where duty collected without authority of law 57.4
15. Limitation starts from the date of judgment 57.4
16. Limitation—Levy of duty on value of packing having been disputed through
a letter by the appellant, the letter was in the nature of protest. Limitation
for refund not applicable. Appellant entitled to refund with interest from date
of refusal. 57.4
17. Limitation (extended) cannot be invoked since there is no allegation of
wilful suppression of facts or mis-representation or fraud 57.5
18. Extended limitation is not applicable when there is no suppression 57.5
19. Show Cause Notice
20. Limitation runs from the date of final assessment 57.5
21. Ratios of some of the important cases 57.5
22. CEGAT Order 57.10
23. Whether erroneous refund granted could be recovered by raising a
demand under Section 11A or Section 35E provides an avenue to the
Department for recovery 57.10

Chapter 58
CUSTOMS AND CENTRAL EXCISE SETTLEMENT COMMISSION
1. Customs and Central Excise Settlement Commission 58.1
2. Notification Nos. 40/99-CE(NT) and 41/99-CE(NT) 58.1
3. New Central Excise (Settlement of Cases) Rules, 2001 58.1
4. Setting up of Settlement Commission for Customs and Central Excise 58.4
Cen-Cus Details Contents liii
5. Functioning of Principal Bench at New Delhi—Issue of Public Notice—
Communication of 58.5
6. Introduction to the Customs & Central Excise Settlement Commission 58.6
7. Settlement Commission—Functioning of Additional Bench at Chennai 58.7
8. Principal Bench of the Customs & Central Excise Settlement Commission 58.8
9. Payment of application fee 58.8
10. Regularization of EO default and settlement of customs duty and interest 58.9

Chapter 59
APPEALS, STAY AND PRE-DEPOSIT UNDER CENTRAL EXCISE LAW
1. In Central Excise Law there are provisions for filing of appeals 59.3
2. Provisions in the Central Excise Act 59.3
3. Effective handling of Central Excise & Customs Appeals,
Recommendations of the Expert Group. 59.3
4. Both assessee and department has been conferred with a right of two or
three stage remedies 59.8
5. Appeals to Commissioner 59.8
6. As per Rule 4, of Appeal Rules an application 59.9
7. Appeals are to be filed individually and not jointly 59.9
8. Representative to represent party 59.9
9. Right of representation 59.10
10. Production of additional evidence before Commissioner 59.10
11. Appeals to the Appellate Tribunal 59.11
12. Form of Application 59.11
13. Orders of Appellate Tribunal 59.11
14. Form of Application to High Court. 59.12
15. Procedure for filing Revision Application 59.14
16. Revision Application 59.14
17. Appeal to Supreme Court 59.15
18. Qualifications for authorized representatives 59.19
19. Requirement of filing cross objection in CESTAT 59.19
20. Appeal 59.17
21. Filing of Civil Appeals 59.18
22. Endorsing of Copies of CEGAT (CESTAT) Order 59.23
23. Procedure 59.23
24. Departmental appeal 59.24
25. Copy of appeal 59.25
26. Steps 59.26
27. Review of Hon'ble Supreme Court decisions Instructions 59.27
28. Appeals in CEGAT (CESTAT) Proper authorisation 59.28
29. Proper scrutiny of Tribunal orders 59.28
30. Scrutiny of Orders 59.29
31. Review 59.29
32. Inspection/Supply of the copies 59.32
33. Inspection/Supply of the copies of Records of Proceedings 59.32
34. Filing of Civil Appeal 59.32
35. Eligibility of Dowtherm Heat Transfer medium 59.35
36. Website of CDR, CEGAT (CESTAT), New Delhi 59.36
liv Cen-Cus Guide to All Cen. Ex. Procedures SRP
37. Delay 59.36
38. Page for Judicial Cell on CBEC Website—Accessibility of information 59.37
39. Filing of civil appeal against CEGAT (CESTAT) orders 59.37
40. Careful investigation 59.38
41. Review/Scrutiny 59.39
42. Filing ROM application 59.39
43. Filing of appeals 59.41
44. CEGAT (CESTAT)'s Order No. A/444/2000/NB (DB) dated 29.5.2000 in the
matter of M/s. Dewan Chand Satyapal Aggarwal v. Commissioner of
Customs, New Delhi. 59.42
45. Appeals in CEGAT (CESTAT) 59.42
46. Determination 59.43
47. Pendency of court cases 59.46
48. The Customs, Excise and Gold (Control) Appellate Tribunal 59.46
49. Abolition 59.49
50. CEGAT (CESTAT)--Procedural changes 59.51
51. CEGAT (CESTAT) Order No. 3/95 dt. 6.11.1995 59.53
52. Appeal—Filing before Bench 59.53
53. Appeals before CEGAT (CESTAT 59.54
54. Appellate Computerised Procedure 59.54
55. G.O.I. decisions are not binding on the Tribunal and they carry only
persuasive value. 59.55
56. Commissioner cannot be considered an "aggrieved person" under section
35B. 59.55
57. Board's Tariff Advices 59.55
58. Delay 59.56
59. The reasons 59.56
60. Adjudication order/Appellate 59.56
61. Review 59.56
62. Extension of period 59.56
63. Extension of Stay by CEGAT (CESTAT)/CESTAT beyond 180 days 59.57
64. Legal points 59.58
65. Baggage—Appeal to the Tribunal 59.58
66. Appeals before the Tribunal 59.58
67. Appeals 59.58
68. Interlocutory order 59.58
69. Appeal is not maintainable as Commissioner's 59.58
70. Where two High Courts differ, Tribunal should go by its own precedents 59.58
71. Appellate order 59.58
72. Commissioner (Appeals) order not held maintainable because it suffered
serious infirmities. 59.58
73. Review remand. 59.59
74. General observations 59.59
75. Appeal does not lie against a provisional order 59.59
76. Orders passed 59.55
77. Officer connected with raids and investigations. 59.59
78. Return of deposits made in terms of Section 35F CE Act, 1944 59.59
79. Award of Interest by the Tribunal. 59.61
Cen-Cus Details Contents lv
80. Effective—Central Excise & Customs Appeals, Recommendations of the
Expert Group 59.62
81. Central Excise-Coercive action 59.64
82. Rules of Criminal trials 59.65
83. Photo-copies of licence 59.65
84. Procedural provisions 59.65
85. Order-in-appeal 59.65
86. No appeal lies to the Tribunal against an executive order 59.65
87. Adjournment 59.65
88. Hearing of arguments 59.65
90. Adjudication proceedings 59.66
91. Non-consideration 59.66
92. Condonation of delay 59.66
93. President's direction 59.66
94. Mens rea is not attracted 59.66
95. Aggrieved person for filing an appeal can be a third party 59.66
96. Tribunal Benches. 59.66
97. Jurisdiction 59.66
98. Adjudication and show cause notice 59.67
99. Excise 59.67
100. Statement recorded by Court 59.67
101. President cannot constitute a larger bench to over rule the decision of a
three member 59.67
102. Non-affixation of court fee 59.67
103. No appeal lies against an interlocutory order of stay. 59.67
104. Review by Commissioner 59.67
105. Liability 59.68
106. Additional evidence 59.68
107. Summary disposal 59.68
108. Appeal against Additional Commissioner's order to Tribunal prior to
14.5.1992 59.68
109. Stay Pre-deposit 59.68
110. Stay of Recovery Prima facie case 59.69
111. Stay Application—Interpretation of "Undue hardship 59.69
112. Stay application—prima facie case and liquidity of applicant 59.70
113. Stay Application prima facie case must be considered 59.70
114. Stay Pre-deposit 59.70
115. Writ Petition for stay 59.70
116. Stay 59.70
117. Unconditional stay 59.70
118. Procedure for filing and disposal of stay petitions 59.70
119. Stay—Prima facie case 59.70
120. Pre-deposit 59.71
121. Acceptance of Bank Guarantee in stay order by Assistant Collector 59.71
122. Stay applications 59.71
123. Order passed ignoring stay application 59.72
124. Pre-deposit of duty 59.72
125. Pre-deposit of duty and penalty 59.72
126. Stay Application 59.72
lvi Cen-Cus Guide to All Cen. Ex. Procedures SRP
127. Section 35F. 59.73
128. Stay 59.73
129. An appeal against dismissal 59.73
130. Right of appeal 59.73
131. Stay petition by the Revenue 59.73
132. Modification of earlier stay orders 59.73
133. Stay: Appeal to Tribunal 59.74
134. Undue hardship 59.74
135. Stay of deposit pending appeal—Majority view 59.74
136. Prior Stay—Stay 59.74
137. Pre-deposit 59.74
138. Stay Application 59.75
139. Stay Application 59.75
140. Where a matter is to be decided ex parte for non-deposit of duty and
penalty, notice must be given 59.75
141. Demand 59.75
142. The Tribunal is duty bound to dispose of fiscal matters expeditiously 59.75
143. Pre-deposit of duty 59.75
144. Pre-deposit waived 59.75
145. Coercive measures 59.76
147. Discretion 59.76
148. Stay—Hardship 59.76
149. Stay Application 59.76
150. Department must refund 59.76
151. Revenue 59.76
152. Liquidity 59.76
153. Tribunal has incidental and ancillary powers 59.76
154. Stay Order 59.76
155. Speedy disposal 59.77
156. Stay 59.77
157. Stay Review 59.77
158. Recovery of Government dues during Pendency of Stay 59.77
159. Ratio of some more cases regarding stay applications 59.78
160. Central Excise appeals 59.81
161. Quasi-judicial proceedings 59.81
162. Interim stay orders 59.84
163. CESTAT—Re-allocation of work between Benches/ Courts 59.86
164. Jurisdiction—CESTAT’s Zonal Benches 59.87

Chapter 60
WRIT PETITIONS
1. Introduction 60.1
2. In Central Excise matters, 60.1
3. Alternative Remedy: 60.1
4. Filing of Writ Petition: 60.2
5. Who may apply under Art. 226. 60.2
6. Mandamus and Prohibition 60.3
7. Enforcement of fundamental rights: 60.3
Cen-Cus Details Contents lvii
8. Applicability of the Limitation Act: 60.3
9. Writ petition 60.4
10. Writ petition 60.4
11. Alternate remedy. 60.4
12. Admitted facts 60.4
13. Alternate remedy. 60.4
14. Writ Petition and Stay. 60.4
15. Writ Petition and Price List. 60.4
16. Writ petition . 60.5
17. Assessment order . 60.5
18. Adjournment of hearing. . 60.5
19. Writ Petition under Art. 226. . 60.5
20. Writ Petition at SCN Stage. . 60.5
21. Review petition. . 60.5
22. Writ petition when finding of fact not challenged. . 60.5
23. Writ petition to decide validity of SCN. . 60.6
24. Writ. 60.6
25. Ratio of some other cases regarding the admissibility of writ petitions are
given below 60.6

Chapter 61
RECTIFICATION OF ORDER
1. Provisions for rectification 61.1
2. Same Bench to hear applications for rectification of mistakes 61.1
3. Rectification 61.1
4. Rectification of Mistake 61.1
5. Ratios of some of the important cases 61.1

Chapter 62
NEW ADDITIONAL GROUNDS IN APPELLATE PROCEEDINGS UNDER EXCISE LAW
1. Sub-section 2 of Section 35A 62.1
2. New Ground—Based on material on record. 62.1
3. Additional grounds permissible if no further investigation is necessary. 62.1
4. Ratios of some important cases on the admissibility of New or Additional
Grounds in appeal are given below 62.2

Chapter 63
ADDITIONAL EVIDENCE IN APPELLATE PROCEEDING UNDER THE EXCISE LAW
1. Introduction. 63.1
2. Additional Evidence – Connotation 63.2
3. Additional evidence when can be permitted at appellate stage. 63.2
4. The ratio of some of the cases regarding admissibility of "additional
evidence" are given below 63.6

Chapter 64
OUT-OF-TURN HEARING
1. Out-of-Turn Hearing 64.1
2. For out-of-turn hearings 64.1
3. When high stakes are involved 64.1
lviii Cen-Cus Guide to All Cen. Ex. Procedures SRP
4. An other reason 64.1
5. Out-of-turn hearing 64.1
6. Similar matter has already been decided by the Supreme Court 64.1
7. Revenue application casual 64.1
8. Proper drafting of Application – Instructions 64.1
9. Appeals before CEGAT(CESTAT) 64.2
Chapter 65
CONCEPT OF REFERENCE OF HIGH COURT UNDER CENTRAL EXCISE LAW
1. Introduction 65.1
2. The procedure for filing of Reference Application 65.2
3. Reference to Supreme Court. 65.3
4. Rule 31 of the said CEGAT(CESTAT) (Procedure) Rules 65.3
5. Rule 32 of the said CEGAT(CESTAT) (Procedure) Rules 65.3
6. Rule 33 of the said CEGAT(CESTAT) (Procedure) Rules 65.3
7. Reference Application in case of a common order 65.3
8. Appeals 65.3
9. Reference Application under Section 35G to High Court. 65.4
10. Questions of law alone are referable to High Court 65.4
11. Ratio of some important cases 65.4

PART XV
AUTHORITY OF ADVANCE RULING

Chapter 66
AUTHORITY OF ADVANCE RULING
1. Provisions of Central Excise Act, 1944 on Advance Rulings (Chapter IIIA of
Central Excise Act, 1944) 66.2
2. Central Excise (Advance Rulings) Rules, 2002 66.5
3. Form—AAR (CE) [Application for Advance Ruling (Central Excise)] 66.6
4. Provisions of Advance Rulings in the Customs Act, 1962 (Chapter VB of
Customs act, 1962) 66.8
5. CUSTOMS (ADVANCE RULINGS) RULES, 2002 66.12
6. Form—AAR (Cus) [Application for Advance Ruling (Customs)] inance Act,
1994 (Chapter Va) 66.13
7. Authority for Advance Rulings (Customs, Central Excise And Service Tax)
Procedure Regulations, 2005 66.15

PART XVI
CENTRAL EXCISE OFFICERS

Chapter 67
EXCISE OFFICER’S VISITS TO UNITS
1. Excise Control 67.1
2. Visits by Central Excise Officers 67.1
3. SSI units not to be visited by Inspectors without Assistant Collector's
permission 67.1
Cen-Cus Details Contents lix
4. SSI: Visit to SSI Units 67.2
5. Visits of Central Excise officers to factories—Identity cards to be shown 67.2
6. Round the clock presence of Central Excise Officers in cigarette factories
under Physical Control 67.2
7. Empowerment under Rule 22 of the CE (No. 2) Rules, 2001 67.3
8. Visit to SSI Units by Central Excise Officers. 67.3
Chapter 68
DELEGATION OF POWERS AND POWERS OF CENTRAL EXCISE OFFICERS
1. Introduction 68.1
2. Appointment & Jurisdiction 68.1
3. Appointment of Officers of Central Excise for specified purposes 68.5
4. Meaning of Central Excise Officer 68.30
5. Proper officer for Sugar Rebate is Assistant Commissioner 68.31
6. Delegation of Powers to AC Cus. in Export Processing Zones 68.31
7. Rule 5 of C.E. Rules 68.32
8. Powers of Central Excise Officers 68.32
9. To facilitate the convenient and practical administration of the legal
provisions 68.32
10. Commissioners or Deputy Commissioners are also empowered under Rule
6 of CE Rules 68.32
11. The scope and extent of other powers 68.32
12. The ratios of important judgments 68.32
13. Meaning of arrest 68.33
14. Arrest under Central Excise Law 68.33
15. Custody—Meaning 68.34
16. Arrested Person—Procedure for dealing with 68.34
17. Person arrested to be produced before the Magistrate within 24 hours 68.35
18. When the Central Excise Officer may arrest 68.35
19. Bail 68.36
20. Bail by Excise Officer 68.36
21. The ratios of some of the judgments 68.36
22. Empowerment under Act & Rules 68.37
23. Powers of Adjudication of Additional/Joint Commissioners of Customs. 68.38
24. Jurisdiction of Chief Commissioners of Central Excise relating to allocation
of Appeal cases within their respective jurisdictions amongst
Commissioners of Central Excise (Appeals) 68.39

Chapter 69
LEGAL STATUS OF DEPARTMENTAL INSTRUCTIONS
1. The provision for the CBE&C issuing instructions 69.1
2. Rule 31 of the CE(Appeals) Rules, 2001 69.1
3. Scope and effect of Tariff Advice. 69.1
4. Board's Tariff Advices and Instructions and Commissioner's Trade Notices. 69.2
5. Trade Notices, Tariff Advices 69.2
6. Quasi-judicial authorities, though not bound, cannot ignore interpretations
given by higher authorities. 69.2
7. Quasi-judicial authority is not to be guided by higher authority. Subordinate
authorities are, however, bound by quasi-judicial orders of higher
authorities. 69.2
lx Cen-Cus Guide to All Cen. Ex. Procedures SRP
8. Quoting of orders of Government/Board by quasi-judicial authorities. 69.4
9. Courts can read down a provision. 69.4
10. G.O.I. decisions are not binding on the Tribunal. 69.4
11. Tariff Rulings and Tariff Advices. 69.4
12. Rescinding of instructions/ guidelines/tariff advices 69.5
13. Procedure for Numbering system in respect of Orders issued under Section
37-B and other Order/Clarifications. 69.5
14. Issue of standard public notices in the Customs Houses/Excise
Commissionerates. 69.7
15. Guidelines relating to issue of Trade Notices/Public Notices 69.8

PART XVII
WORDS & PHRASES

Chapter 70
SOME IMPORTANT WORDS AND PHRASES USED IN CENTRAL EXCISE
1. Accessories 70.1
2. Authorised Representative 70.1
3. To the satisfaction of: 70.2
4. Manufacture. 70.2
5. Ayurvedic medicament. 70.2
6. Audit Alteram Partem 70.3
7. Nemo judex in cause a sua: 70.3
8. Per incuriam: 70.3
9. Obiter di'cta: 70.3
10. Ratio decidendi: 70.3
11. Mutuality of interest: 70.3
12. Double jeopardy: 70.3
13. Dismissal for default: 70.3
14. Contemporanea exposition 70.4
15. Mandamus: 70.4
16. Certiorari: 70.4
17. In person: 70.4
18. Liquidity 70.4
19. Balance of Convenience 70.4
20. Undue Hardship: 70.4
21. Accessory: 70.4
22. Inter changeability: 70.5
23. Similar: 70.5
24. Meaning of the words "and", "or": 70.5
25. Meaning of namely "and" the following namely: 70.5
26. Meaning of including: 70.5
27. Other Sorts: 70.5
28. All sorts: 70.6
29. Such as: 70.6
30. Relation to the rate of Customs duty: 70.6
31. Fiction created in Law 70.6
32. CESTAT 70.6

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