6
th
August, 2003
Notification No. 65/2003 - Central Excise
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-
section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-
section (3) of section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the Central
Government, being satisfied that it is necessary in the public interest so to do, hereby directs that each of the notifications of
the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table hereto
annexed, shall be further amended, in the manner specified in the corresponding entry in column (3) of the said Table.
Table
S.
No.
Notification
No. and
date
Amendments
(1)(2) (3)
1.
32/99-
Central
Excise,
dated the 8
th
July,
1999.
In the said notification,-
(i) after opening paragraph, the following paragraph shall be inserted, namely:-
"1A. In cases where all the goods produced by a manufacturer are eligible for exemption under this notification,
the exemption contained in this notification shall be available subject to the condition that, the manufacturer first
utilizes whole of the CENVAT credit available to him on the last day of the month under consideration, for
payment of duty on goods cleared during such month and pays only the balance amount in cash.";
(ii) for the proviso to clause (b) of paragraph 2, following proviso shall be substituted, namely:-
"Provided that in cases, where the exemption contained in this notification is not applicable to some of the
goods produced by a manufacturer, such refund shall not exceed the amount of duty paid less the amount of the
CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of
goods cleared under this notification.";
(iii) after paragraph 2, the following paragraph shall be inserted, namely:-
"2A. Notwithstanding anything contained in paragraph 2,-
(a) the manufacturer at his own option, may take credit of the amount of duty paid during the month under
consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his
account current, maintained in terms of Part V of the Excise Manual of Supplementary Instruction issued by the
Central Board of Excise and Customs. Such amount credited in the account current may be utilised by the
manufacture for payment of duty, in the manner specified under rule 8 of the Central Excise Rules, 2002, in
subsequent months, and such payment should be deemed to be payment in cash;
Provided that where the exemption contained in this notification is not applicable to some of the goods
produced by a manufacturer, the amount of such credit shall not exceed the amount of duty paid less the amount
of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the
manufacture of goods cleared under this notification.;
(b) the credit of duty paid during the month under consideration, other than by way of utilisation of CENVAT
credit under the CENVAT Credit Rules, 2002, may be taken by the manufacturer in his account current, by the
seventh day of the month following the month under consideration;
(c) a manufacturer who intends to avail the option under clause (a), shall exercise his option in writing for
availing such option before effecting the first clearance in any financial year and such option shall be effective
from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year;
Provided that , for the financial year 2003-04, a manufacturer can exercise his option on or before 30
th
day of
September 2003.
(d) the manufacturer shall submit a statement of the duty paid, other than by way of utilisation of CENVAT credit
under the CENVAT Credit Rules, 2002, along with the refund amount which he has taken credit and the
calculation particulars of such credit taken, to the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, by the 7
th
day of the next month to the month under
consideration;
(e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case
may be, after such verification, as may be deemed necessary, shall determine the amount correctly refundable
to the manufacturer and intimate the same to the manufacture by 15
th
day of the next month to the month under
consideration. In case the credit taken by the manufacturer is in excess of the amount determined, the
manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from
the said account current maintained by him. In case, the credit taken by the manufacturer is less than the
amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount;
(f) in case the manufacturer fails to comply with the provisions of clause (a) to (e), he shall forfeit the option, to
take credit of the amount of duty during the month under consideration, other than by way of utilisation of
CENVAT credit under the CENVAT Credit Rules, 2002, in his account current on his own, as provided for in
clauses (a) and (c);
(g) the amount of the credit availed irregularly or availed of in excess of the amount determined correctly
refundable under clause (e) and not reversed by the manufacturer within the period specified in that clause,
shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or
excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods should be
considered to have been cleared without payment of duty to the extent of utilisation of such irregular or excess
credit.
Explanation .-For the purposes of this notification, duty paid, by utilisation of the amount credited in the account
current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT
Credit Rules, 2002." .
2.
33/99-
Central
Excise,
dated the 8
th
July,
1999.
In the said notification,-
(i) after opening paragraph, the following paragraph shall be inserted, namely:-
"1A. In cases where all the goods produced by a manufacturer are eligible for exemption under this notification,
the exemption contained in this notification shall be available subject to the condition that, the manufacturer first
utilises whole of the CENVAT credit available to him on the last day of the month under consideration for
payment of duty on goods cleared during such month and pays only the balance amount in cash.";
(ii) for the proviso to clause (b) of paragraph 2, following proviso shall be substituted, namely:-
"Provided that in cases, where the exemption contained in this notification is not applicable to some of the
goods produced by a manufacturer, such refund shall not exceed the amount of duty paid less the amount of the
CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of
goods cleared under this notification.";
(iii) after paragraph 2, the following paragraph shall be inserted, namely:-
"2A. Notwithstanding anything contained in paragraph 2,-
(a) the manufacturer at his own option, may take credit of the amount of duty paid during the month under
consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his
account current, maintained in terms of Part V of the Excise Manual of Supplementary Instruction issued by the
Central Board of Excise and Customs. Such amount credited in the account current may be utilised by the
manufacture for payment of duty, in the manner specified under rule 8 of the Central Excise Rules, 2002, in
subsequent months, and such payment should be deemed to be payment in cash;
Provided that where the exemption contained in this notification is not applicable to some of the goods
produced by a manufacturer, the amount of such credit shall not exceed the amount of duty paid less the amount
of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the
manufacture of goods cleared under this notification.;
(b) the credit of duty paid during the month under consideration, other than by way of utilisation of CENVAT
credit under the CENVAT Credit Rules, 2002, may be taken by the manufacturer in his account current, by the
seventh day of the month following the month under consideration;
(c) a manufacturer who intends to avail the option under clause (a), shall exercise his option in writing for
availing such option before effecting the first clearance in any financial year and such option shall be effective
from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year;
Provided that , for the financial year 2003-04, a manufacturer can exercise his option on or before 30
th
day of
September 2003.
(d) the manufacturer shall submit a statement of the duty paid, other than by way of utilisation of CENVAT credit
under the CENVAT Credit Rules, 2002, along with the refund amount which he has taken credit and the
calculation particulars of such credit taken, to the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, by the 7
th
day of the next month to the month under
consideration;
(e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case
may be, after such verification, as may be deemed necessary, shall determine the amount correctly refundable
to the manufacturer and intimate the same to the manufacture by 15
th
day of the next month to the month under
consideration. In case the credit taken by the manufacturer is in excess of the amount determined, the
manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from
the said account current maintained by him. In case, the credit taken by the manufacturer is less than the
amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount;
(f) in case the manufacturer fails to comply with the provisions of clause (a) to (e), he shall forfeit the option, to
take credit of the amount of duty during the month under consideration, other than by way of utilisation of
CENVAT credit under the CENVAT Credit Rules, 2002,in his account current on his own, as provided for in
clauses (a) and (c);
(g) the amount of the credit availed irregularly or availed of in excess of the amount determined correctly
refundable under clause (e) and not reversed by the manufacturer within the period specified in that clause,
shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or
excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods should be
considered to have been cleared without payment of duty to the extent of utilisation of such irregular or excess
credit.
Explanation .-For the purposes of this notification, duty paid, by utilisation of the amount credited in the account
current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT
Credit Rules, 2002." .
3.
39/2001-
Central
Excise,
dated the
31
st
July,
2001.
In the said notification,-
(i) after opening paragraph, the following paragraph shall be inserted, namely:-
"1A. In cases where all the goods produced by a manufacturer are eligible for exemption under this notification,
the exemption contained in this notification shall be available subject to the condition that, the manufacturer first
utilises whole of the CENVAT credit available to him on the last day of the month under consideration for
payment of duty on goods cleared during such month and pays only the balance amount in cash.";
(ii) for the proviso to clause (b) of paragraph 2, following proviso shall be substituted, namely:-
"Provided that in cases, where the exemption contained in this notification is not applicable to some of the
goods produced by a manufacturer, such refund shall not exceed the amount of duty paid less the amount of the
CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of
goods cleared under this notification.";
(iii) after paragraph 2, the following paragraph shall be inserted, namely:-
"2A. Notwithstanding anything contained in paragraph 2,-
(a) the manufacturer at his own option, may take credit of the amount of duty paid during the month under
consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his
account current, maintained in terms of Part V of the Excise Manual of Supplementary Instruction issued by the
Central Board of Excise and Customs. Such amount credited in the account current may be utilised by the
manufacture for payment of duty, in the manner specified under rule 8 of the Central Excise Rules, 2002, in
subsequent months, and such payment should be deemed to be payment in cash;
Provided that where the exemption contained in this notification is not applicable to some of the goods
produced by a manufacturer, the amount of such credit shall not exceed the amount of duty paid less the amount
of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the
manufacture of goods cleared under this notification.;
(b) the credit of duty paid during the month under consideration, other than by way of utilisation of CENVAT
credit under the CENVAT Credit Rules, 2002, may be taken by the manufacturer in his account current, by the
seventh day of the month following the month under consideration;
(c) a manufacturer who intends to avail the option under clause (a), shall exercise his option in writing for
availing such option before effecting the first clearance in any financial year and such option shall be effective
from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year;
Provided that , for the financial year 2003-04, a manufacturer can exercise his option on or before 30
th
day of
September 2003.
(d) the manufacturer shall submit a statement of the duty paid, other than by way of utilisation of CENVAT credit
under the CENVAT Credit Rules, 2002, along with the refund amount which he has taken credit and the
calculation particulars of such credit taken, to the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, by the 7
th
day of the next month to the month under
consideration;
(e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case
may be, after such verification, as may be deemed necessary, shall determine the amount correctly refundable
to the manufacturer and intimate the same to the manufacture by 15
th
day of the next month to the month under
consideration. In case the credit taken by the manufacturer is in excess of the amount determined, the
manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from
the said account current maintained by him. In case, the credit taken by the manufacturer is less than the
amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount;
(f) in case the manufacturer fails to comply with the provisions of clause (a) to (e), he shall forfeit the option, to
take credit of the amount of duty during the month under consideration, other than by way of utilisation of
CENVAT credit under the CENVAT Credit Rules, 2002,in his account current on his own, as provided for in
clauses (a) and (c);
(g) the amount of the credit availed irregularly or availed of in excess of the amount determined correctly
refundable under clause (e) and not reversed by the manufacturer within the period specified in that clause,
shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or
excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods should be
considered to have been cleared without payment of duty to the extent of utilisation of such irregular or excess
credit.
Explanation .-For the purposes of this notification, duty paid, by utilisation of the amount credited in the account
current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT
Credit Rules, 2002." .
4.
56/2002-
Central
Excise,
dated the
14
th
November,
2002.
In the said notification,-
(i) after opening paragraph, the following paragraph shall be inserted, namely:-
"1A. In cases where all the goods produced by a manufacturer are eligible for exemption under this notification,
the exemption contained in this notification shall be available subject to the condition that, the manufacturer first
utilises whole of the CENVAT credit available to him on the last day of the month under consideration for
payment of duty on goods cleared during such month and pays only the balance amount in cash.";
(ii) for the proviso to clause (b) of paragraph 2, following proviso shall be substituted, namely:-
"Provided that in cases, where the exemption contained in this notification is not applicable to some of the
goods produced by a manufacturer, such refund shall not exceed the amount of duty paid less the amount of the
CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of
goods cleared under this notification.";
(iii) after paragraph 2, the following paragraph shall be inserted, namely:-
"2A. Notwithstanding anything contained in paragraph 2,-
(a) the manufacturer at his own option, may take credit of the amount of duty paid during the month under
consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his
account current, maintained in terms of Part V of the Excise Manual of Supplementary Instruction issued by the
Central Board of Excise and Customs. Such amount credited in the account current may be utilised by the
manufacture for payment of duty, in the manner specified under rule 8 of the Central Excise Rules, 2002, in
subsequent months, and such payment should be deemed to be payment in cash;
Provided that where the exemption contained in this notification is not applicable to some of the goods
produced by a manufacturer, the amount of such credit shall not exceed the amount of duty paid less the amount
of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the
manufacture of goods cleared under this notification.;
(b) the credit of duty paid during the month under consideration, other than by way of utilisation of CENVAT
credit under the CENVAT Credit Rules, 2002, may be taken by the manufacturer in his account current, by the
seventh day of the month following the month under consideration;
(c) a manufacturer who intends to avail the option under clause (a), shall exercise his option in writing for
availing such option before effecting the first clearance in any financial year and such option shall be effective
from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year;
Provided that , for the financial year 2003-04, a manufacturer can exercise his option on or before 30
th
day of
September 2003.
(d) the manufacturer shall submit a statement of the duty paid, other than by way of utilisation of CENVAT credit
under the CENVAT Credit Rules, 2002, along with the refund amount which he has taken credit and the
calculation particulars of such credit taken, to the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, by the 7
th
day of the next month to the month under
consideration;
(e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case
may be, after such verification, as may be deemed necessary, shall determine the amount correctly refundable
to the manufacturer and intimate the same to the manufacture by 15
th
day of the next month to the month under
consideration. In case the credit taken by the manufacturer is in excess of the amount determined, the
manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from
the said account current maintained by him. In case, the credit taken by the manufacturer is less than the
amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount;
(f) in case the manufacturer fails to comply with the provisions of clause (a) to (e), he shall forfeit the option, to
take credit of the amount of duty during the month under consideration, other than by way of utilisation of
CENVAT credit under the CENVAT Credit Rules, 2002,in his account current on his own, as provided for in
clauses (a) and (c);
(g) the amount of the credit availed irregularly or availed of in excess of the amount determined correctly
refundable under clause (e) and not reversed by the manufacturer within the period specified in that clause,
shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or
excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods should be
considered to have been cleared without payment of duty to the extent of utilisation of such irregular or excess
credit.
Explanation .-For the purposes of this notification, duty paid, by utilisation of the amount credited in the account
current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT
Credit Rules, 2002." .
5.
57/2002-
Central
Excise,
dated the
14
th
November,
2002.
In the said notification,-
(i) after opening paragraph, the following paragraph shall be inserted, namely:-
"1A. In cases where all the goods produced by a manufacturer are eligible for exemption under this notification,
the exemption contained in this notification shall be available subject to the condition that, the manufacturer first
utilises whole of the CENVAT credit available to him on the last day of the month under consideration for
payment of duty on goods cleared during such month and pays only the balance amount in cash.";
(ii) for the proviso to clause (b) of paragraph 2, following proviso shall be substituted, namely:-
"Provided that in cases, where the exemption contained in this notification is not applicable to some of the
goods produced by a manufacturer, such refund shall not exceed the amount of duty paid less the amount of the
CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of
goods cleared under this notification.";
(iii) after paragraph 2, the following paragraph shall be inserted, namely:-
"2A. Notwithstanding anything contained in paragraph 2,-
(a) the manufacturer at his own option, may take credit of the amount of duty paid during the month under
consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his
account current, maintained in terms of Part V of the Excise Manual of Supplementary Instruction issued by the
Central Board of Excise and Customs. Such amount credited in the account current may be utilised by the
manufacture for payment of duty, in the manner specified under rule 8 of the Central Excise Rules, 2002, in
subsequent months, and such payment should be deemed to be payment in cash;
Provided that where the exemption contained in this notification is not applicable to some of the goods
produced by a manufacturer, the amount of such credit shall not exceed the amount of duty paid less the amount
of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the
manufacture of goods cleared under this notification.;
(b) the credit of duty paid during the month under consideration, other than by way of utilisation of CENVAT
credit under the CENVAT Credit Rules, 2002, may be taken by the manufacturer in his account current, by the
seventh day of the month following the month under consideration;
(c) a manufacturer who intends to avail the option under clause (a), shall exercise his option in writing for
availing such option before effecting the first clearance in any financial year and such option shall be effective
from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year;
Provided that , for the financial year 2003-04, a manufacturer can exercise his option on or before 30
th
day of
September 2003.
(d) the manufacturer shall submit a statement of the duty paid, other than by way of utilisation of CENVAT credit
under the CENVAT Credit Rules, 2002, along with the refund amount which he has taken credit and the
calculation particulars of such credit taken, to the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, by the 7
th
day of the next month to the month under
consideration;
(e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case
may be, after such verification, as may be deemed necessary, shall determine the amount correctly refundable
to the manufacturer and intimate the same to the manufacture by 15
th
day of the next month to the month under
consideration. In case the credit taken by the manufacturer is in excess of the amount determined, the
manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from
the said account current maintained by him. In case, the credit taken by the manufacturer is less than the
amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount;
(f) in case the manufacturer fails to comply with the provisions of clause (a) to (e), he shall forfeit the option, to
take credit of the amount of duty during the month under consideration, other than by way of utilisation of
CENVAT credit under the CENVAT Credit Rules, 2002,in his account current on his own, as provided for in
clauses (a) and (c);
(g) the amount of the credit availed irregularly or availed of in excess of the amount determined correctly
refundable under clause (e) and not reversed by the manufacturer within the period specified in that clause,
shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or
excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods should be
considered to have been cleared without payment of duty to the extent of utilisation of such irregular or excess
credit.
Explanation .-For the purposes of this notification, duty paid, by utilisation of the amount credited in the account
current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT
Credit Rules, 2002." .
G.S.Karki
Under Secretary to the Government of India
F.No. 261/10/2003-CX
Note:- (1) The principal notification No. 32/99-Central Excise, dated the 8
th
July, 1999 was published in the Gazette of India,
Extraordinary [G.S.R. 508(E), dated the 8
th
July, 1999] and was last amended by section 154 of the Finance Act, 2003 (32 of
2003).
(2) The principal notification No. 33/99-Central Excise, dated the 8
th
July, 1999 was published in the Gazette of India,
Extraordinary [G.S.R. 509(E), dated the 8
th
July, 1999] and was last amended by section 154 of the Finance Act, 2003 (32
of 2003).
(3) The principal notification No. 39/2001-Central Excise, dated the 31
st
July, 2001 was published in the Gazette of India,
Extraordinary [G.S.R. 375(E), dated the 31
st
July, 2001] and was last amended by notification No. 16/2003-Central Excise,
dated the 1
st
March, 2003 [G.S.R 146 (E), dated the 1
st
March, 2003].
(4) The principal notification No. 56/2002-Central Excise, dated the 14
th
November, 2002.was published in the Gazette of
India, Extraordinary [G.S.R. 764(E), dated the 14
th
November, 2002], and was last amended by notification No. 40/2003-
Central Excise, dated the 13
th
May, 2003 [G.S.R 396 (E), dated the 13
th
May, 2003].
(5) The principal notification No. 57/2002-Central Excise, dated the 14
th
November, 2002.was published in the Gazette of
India, Extraordinary [G.S.R. 765 (E), dated the 14
th
November, 2002] and was last amended by notification No. 5/2003-
Central Excise, dated the 13
th
February, 2003 [G.S.R 104 (E), dated the 13
th
February, 2003].
