NOTIFICATION New Delhi, the 1
st
March, 2007
No. 17/2007-Central Excise 10 Phalguna, 1928 (Saka)
G.S.R. (E).- In exercise of the powers conferred by rule 15 of the Central Excise Rules, 2002,
and in supersession of the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No.34/2001-Central Excise, dated the 28
th
June, 2001 which was
published in the Gazette of India vide number G.S.R. 492(E) of the same date, except as respects
things done or omitted to be done before such supersession, the Central Government hereby
specifies the excisable goods that is stainless steel pattis/pattas, falling under Chapter 72, or
aluminium circles falling under Chapter 76 of the First Schedule to the Central Excise Tariff Act,
1985 (5 of 1986) subjected to the process of cold rolling with the aid of cold rolling machine in
respect of which an assessee shall have an option to pay the duty of excise on the basis of cold
rolling machine installed for cold rolling of these goods, and fixes the following rate of duty per
cold rolling machine, per month:-
(i) stainless steel pattis or pattas
Thirty thousand rupees
(ii) aluminium circles produced from sheets
manufactured on cold rolling machines
Twelve thousand rupees
Provided that no credit of duty paid on any raw materials, component part or machinery
or finished products used for cold rolling of stainless steel pattis/pattas, or aluminium circles
under the CENVAT Credit Rules, 2004 shall be taken :
Provided further that the procedure mentioned hereinafter is followed.
2. Application to avail special procedure. - (1) The manufacturer shall make an
application in the form specified in Appendix-I to this notification to the Superintendent of
Central Excise, as the case may be, for this purpose and the Superintendent, may grant permission
for the period in respect of which the application has been made.
(2) The application shall be made so as to cover a period of not less than twelve
consecutive calendar months, but permission may be granted for a shorter period for reasons to be
recorded in writing, by the Assistant Commissioner or the Deputy Commissioner of Central
Excise, as the case may be.
(3) If at any time during such period the manufacturer fails to avail himself of the
procedure contained in this notification, he shall, unless otherwise ordered by the Assistant
Commissioner or the Deputy Commissioner of Central Excise, as the case may be, be precluded
from availing himself of such procedure for a period of six months from the date of such failure.
(4) If the manufacturer desires to avail himself of the procedure contained in this
notification on the expiry of the period for which his application was granted, he shall, before
such expiry, make an application to the Assistant Commissioner or the Deputy Commissioner of
Central Excise, as the case may be, as under sub- paragraph (1) and on his failure to do so, he
shall, except as provided herein, be precluded from availing himself of such procedure for a
period of six months from the date of such expiry.
(5) Notwithstanding anything contained in sub-paragraph (1), an application made
by a manufacturer, before the commencement of this notification, under sub-rule (1) of rule 96ZA
of the Central Excise Rules, 1944, shall be deemed to be an application made under sub-
paragraph (1) and the same shall be deemed to have been granted under sub-paragraph (1) and
where such application has not been granted, the Assistant Commissioner or the Deputy
Commissioner, as the case may be, shall dispose of the same as if it is an application under sub-
paragraph (1).
3. Discharge of duty liability on payment of certain sum. - (1) A manufacturer whose
application has been granted under paragraph 2 shall pay a sum calculated at the rate specified in
this notification, subject to the conditions herein laid down, and such payment shall be in full
discharge of his liability for duty leviable on his production of such cold re-rolled stainless
pattas/pattis, or aluminium circles during the period for which the said sum has been paid :
Provided that if there is revision in the rate of duty, the sum payable shall be recalculated
on the basis of the revised rate, from the date of revision and liability for duty leviable on the
production of stainless steel pattis/pattas, or aluminium circles from that date shall not be
discharged unless the differential duty is paid and in case the amount of duty so recalculated is
less than the sum paid, the balance shall be refunded to the manufacturer :
Provided further that when a manufacturer makes an application for the first time under
paragraph 2 for availing of the procedure contained in this notification, the duty liability for the
month in which the application is granted shall be calculated pro-rata on the basis of the total
number of days in that month and the number of days remaining in the month from the date of
such grant.
(2) The sum payable under sub-paragraph (1) shall be calculated by application of
the appropriate rate to the maximum number of cold rolling machines installed by or on behalf of
such manufacturer in one or more premises at any time during three calendar months immediately
preceding the calendar month in which the application under paragraph 2 is made.
(3) The sum shall be tendered by the manufacturer along with the application.
4. Manufacturer’s declaration and accounts. - (1) The manufacturer who has been
granted permission under paragraph (2) above shall make an application in the form specified in
Appendix-II to this notification to the Superintendent-in-charge of the factory for permission to
remove the stainless steel pattis/pattas, or aluminium circles from his premises during the ensuing
month, declaring the maximum number of cold rolling machines installed by him or on his
behalf, in one or more premises at any time during three calendar months immediately preceding
the said calendar month in which such application is made.
(2) If such application is not made to the Superintendent of Central Excise within
the time limit laid down in sub-paragraph (1), the manufacturer shall, unless, otherwise directed
by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise,
and in exceptional circumstances, be liable to pay duty on his entire production of stainless steel
pattis/pattas, or aluminium circles during the month or part thereof in respect of which the
application was to be made, at the rate prescribed in the First Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986) read with any relevant notification issued under sub-section (1) of
section 5A of the Central Excise Act, 1944 (1 of 1944).
(3) The manufacturer shall also intimate the Superintendent of Central Excise in
writing of any proposed change in the number of cold rolling machines installed by him or on his
behalf, and obtain the written approval of such officer before making any such change.
5. Exemption from certain provisions etc. - (1) During the period in respect of which
any manufacturer has been permitted to avail himself of the procedure of this notification, he
shall be exempt from the operation of rule 8 of the Central Excise Rules, 2002.
(2) Except in accordance with such terms and conditions as the Central
Government may by notification specify in this behalf, no rebate of excise duty shall be paid
under rule 18 of the said Central Excise Rules, in respect of any stainless steel pattis/pattas, or
aluminium circles exported out of India, out of the stock produced by such manufacturer during
such period.
6. Provisions regarding new factories and closed factories resuming production. - (1)
In the case of a manufacturer who commences production for the first time or who recommences
production after having ceased production for a continuous period of not less than three months,
and who has been permitted by the Assistant Commissioner or the Deputy Commissioner of
Central Excise, as the case may be, under paragraph 2 to avail of the procedure, the amount
payable by him for the first month or part thereof, as the case may be, shall be provisionally
calculated on the basis of his declaration of the maximum number of cold rolling machines that
are or are likely to be installed by him or on his behalf during such period.
(2) At the expiry of the period, the amount payable shall be recalculated on the basis
of the maximum number of cold rolling machines actually installed and if the initial payment falls
short of the total liability so determined, the deficiency shall be recovered from the manufacturer
and where the total liability is less than the initial deposit, the balance shall be refunded to the
manufacturer.
7. Power to condone failure to apply for special procedure. - Notwithstanding
anything contained in this notification, the Additional Commissioner, or as the case may be, the
Joint Commissioner of Central Excise may, at his discretion, for reasons to be recorded in
writing, and subject to such conditions as he may deem fit, apply the provisions contained in this
notification to a manufacturer who has failed to avail himself of the special procedure, or to
comply with any condition laid down in this notification.
8. Provision regarding factories ceasing to work or reverting to the normal
procedure. - Notwithstanding anything contained in this notification, where a manufacturer who
had availed himself of the procedure contained in this notification ceases to work or reverts to the
normal procedure, the duty payable by him in the month during which he has availed himself of
the procedure shall be calculated on the basis of the maximum number of cold rolling machines
installed during the last month in the manner prescribed in paragraph 6 and the amount already
paid for the month in accordance with paragraph 3 shall be adjusted towards the duty so
calculated and on such adjustment if there is any excess payment it shall be refunded to the
manufacturer and any deficiency in duty shall be recovered from the manufacturer.
Explanation. - A manufacturer, who ceases to work his factory for one or two shifts only, shall
not be deemed to have ceased to work within the meaning of this notification.
9. Confiscation and penalty. - If any manufacturer contravenes any provision of this
notification in respect of any excisable goods, then all such goods shall be liable to confiscation,
and the manufacturer shall be liable to penalty under rule 25 of the Central Excise Rules, 2002.
Appendix-I
(See paragraph 2)
Form A S P II
Application for permission to avail of the special procedure relating to stainless steel pattis or
pattas or aluminium circles.
Name of the factory/factories…………Address………………….
I/We…………..manufacturers of stainless steel pattis or pattas/aluminium circles, residing
at……..taluk/tehsil…….district….and holders of Central Excise Registration
No…………dated……hereby apply to avail myself/ourselves during the…….calendar month/the
period beginning with…..20… and ending with ….20…. of the special procedure in respect of the
production or transactions in such stainless steel pattis or pattas or aluminium circles at my/our
above mentioned factory/factories.
2. I/We hereby agree to abide by the terms and conditions of the said procedure
throughout the said period.
Place :
Date :
Signature of manufacturers or his/their authorised agent.
Countersigned
………………….
Range………
Circle……….
Place :
Date :
Permission granted for the calendar month……../the period beginning with…. and ending
with…………..
Assistant Commissioner/Deputy
Commissioner of Central Excise
Place :
Date :
Note: Delete the entries which are not applicable.
Appendix-II
(See paragraph 4)
Original
Duplicate
Triplicate
Quadruplicate
Application for removal of stainless steel pattis/pattas manufactured under the special
procedure
Name of the Factory …………………………. Address................
1. I/We............................................manufacturer of stainless steel pattis/pattas
residing at.............................................. Taluka/Tehsil.............................. District..........……….
and holder of Central Excise Registration No. ............dated...........having been permitted to avail
myself/ourselves of the special procedure contained in the notification issued under rule 15 of
Central Excise Rules 2002, in respect of my/our production and transactions in such stainless
steel pattis/pattas at the above-mentioned factory/factories hereby declare that I/we intend to
install and employ the cold rolling machines for the production of stainless steel pattis/pattas
during the year............ in the manner indicated below, and the total sum payable by me/us in
terms of the provisions laid down in the notification in respect of the said period are stated
hereunder :-
No. of cold rolling
Machines to be installed
and employed
Rate prescribed in Government of
India Notification No. __/2007-
Central Excise, dated___
Sum
payable
Total
(1) (2) (3) (4)
2. I/We tender herewith the sum of Rs...........(Rupees................only). The balance
will be paid by me/us in monthly instalments.
3. I/We hereby declare that the particulars furnished herein are true and complete
to the best of my/our knowledge and belief.
4. I/We apply for leave to remove from the above mentioned premises during the
period from ..........to.............any stainless steel pattis/pattas manufactured in the said premises
during that period.
5. I/We understand that the permission accorded to me/us for the year.......is
subject to my/our paying the balance amount as indicated in paragraph 2 above.
Place..........
Date .......... Signature of manufacturer or his authorised agent.
To
The Superintendent of Central Excise
...............................Range
...............................Division
COUNTERSIGNED
Place...........
Date ...........
Superintendent of Central Excise
.............................Range
.............................Circle.
Statement of duty paid :
(a) For payment in cash at.................
Treasury
State Bank of India
Reserve Bank of India
(To be filled in by the manufacturer or his authorised agent)
Name of person tendering
payment
Particulars of payment Amount (in words as well as in figures)
(1) (2) (3)
Head of Account
038-Union Excise Duties- Stainless steel pattis/pattas
(b) Under the compounded levy scheme.
Date………. Signature of the tenderer
(To be filled in by the Treasury or Bank)
CERTIFICATE
Deposit Number..........Date...........Received payment of rupees (in words)......
Signature of Treasurer or Accountant
Agent or Manager
(c) For payment through account-current :
Title of Account of Ledger Number and date of
entry
Amount (in words as well
as in figures)
(1) (2) (3)
Place.........
Date..........
Signature of the manufacturer or his authorized agent.
(d) For payment through T.R.5/Special Revenue Money Order
Date of Payment T.R.5 No./Special Money Order
Coupon No.
Amount (in words as
well as in figures)
(1) (2) (3)
Place...........
Date............
Clearance allowed subject to fulfilment of the condition of deposits
Superintendent of Central Excise
Note: Delete the entries not applicable.
[F.No.334/1/2007-TRU]
(S. Bajaj)
Under Secretary to the Government of India
