Circular No. 126/37/95-Central Excise
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs, New Delhi
Subject: Accountal of raw materials used in the manufacture of cigarettes – Instructions regarding.
I am directed to say that with a view to have proper accountal of the raw materials used in the manufacture of cigarettes; Trade Notices have been issued by different Collectorates prescribing maintenance of accounts in respect of different raw materials used in the manufacture of cigarettes.
2. In the above connection, attention is invited to Rule 55 of the Central Excise Rules, 1944 according to which Collector may prescribe a return, in proper form, of the raw materials to be submitted at the end of every manufacturing period or, if the manufacture is continuous, at the end of every quarter stating with respect to the period in question –
(a) the quantity of principal raw materials as is prescribed by Collector and is used in the manufacture of excisable goods; and
(b) the quantity of finished goods, of each description, produced.
3. Further to above, according to Rule 94 of the Central Excise Rules, 1944 every manufacturer of excisable tobacco products is required to enter into register in the proper from or in such other form as the Collector may allow, the particulars of weight and quantities or raw materials received and consumed, the remaining balance and the quantity of goods produced etc.
4. In order to have uniform practice in providing similar control on raw materials used for manufacturing cigarettes, the Board desires that Collectors may prescribe cigarette tissue paper, filter rods, PCT, CFCS, Shells & Slides as other principal raw materials i.e. in addition to cut tobacco for the manufacture of cigarettes. As regards cut tobacco, your attention is invited to Board”s Circular 30/81-CX. 6 (issued from F.No.201/3/77-CX.6 dated 30.7.1987 (issued vide F.No. 211/70.86-CX.6) regarding declaration of input-output ratio by Cigarette Companies and their verification by Central Excise Officer.
5. Every cigarette manufacturer may be required to maintain the raw material account for the receipt and issue of the prescribed raw materials for the manufacture of excisable goods, and the quantity of excisable goods manufactured out of the same etc. in the format annexed as Annexure-A to this Circular.
6. In addition to maintaining the raw material accounts, every cigarette manufacturer may also be required to submit a quarterly return in Form R.T.5 in the format annexed as Annexure-B, in respect of the prescribed raw materials used and the excisable goods manufactured therefrom to the jurisdictional Range Superintendent at the end of each quarter, by the 7th of the following month.
7. The quantity of raw materials found not suitable for manufacture or which gets damaged or is rendered unfit shall be separately accounted for and presented to the Range Office for verification before destruction thereof.
Account of Raw Materials and Components
Name and Address of the factory …………………………………….
Description of raw material / components …………………………………..
| Date
|
Opening Balance | Quantity received | Total |
Quantity used in the manufacture of |
Quantity otherwise disposed of |
||
|
Excisable goods |
other goods |
Nature of the disposed |
Quantity
|
||||
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
| Total for the month | |||||||
| Quantity wasted of destroyed | Closing balance | Quantity of Excisable goods manufactured | Quantity of other goods manufactured | Remarks | Signature of the assessee or his agent |
|
9 |
10 |
11 |
12 |
13 |
14. |
NOTE :- Separate opening should be provided in respect of each raw material / component.
| Central Excise Series No. 71 |
Range …………….
|
|
Circle ……………..
|
FORM R.T. 5
Periodical Quarterly Return of materials used and of goods manufactured
(Rule 55)
| Name of factory ……………. | Quarter ending …………….. |
Address ………………………….
|
| Season from ……….. to ……………… |
| Opening balance of materials |
Materials received | Total Materials | (Total materials used) | Excisable goods manufactured | |||||
|
Description
|
Quantity
|
Description
|
Quantity (Total of Col. 2 and 4) |
Description | Quantity | Description | Quantity
|
|
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
Other goods manufactured
|
Materials wasted or destroyed |
Closing balance of materials.
|
Remarks
|
||||||
| Description |
Quantity |
Description |
Quantity |
Description |
Quantity |
||||
|
11 |
12 |
13 |
14 |
15 |
16 |
17 |
|||
NOTES :-
(1) Separate particulars of each description of materials used & of each description of finished goods produced should be given.
(2) The reason for wastage and destruction should be entered in the “Remarks” column.
I/We declare that I /We have compared to above particulars with the records and books of my/ our factory and that they are, in so far as I/ We can ascertain, accurate & Complete.
Date …………………………
