I am directed to say that erstwhile rule 57CC(1) of the Central Excise Rules, 1944 provides for payment of an amount equal to 8% of the total price (excluding sales tax etc. paid on such goods) of the exempted final product by the manufacturers who manufacture both dutiable and exempted final products without maintaining a separate account for inputs, on which credit has been availed. It has been reported that certain manufacturers are realising the amount so paid under said Rule 57CC from their buyers by showing it separately in the invoices. Doubts have been expressed as to whether the amount so realised by the manufacturers represents Central Excise duty and whether this amount has to be paid to the credit of Central Government under the provisions of section 11D of Central Excise Act, 1944.
