Government of India
Ministry of Finance
Department of Revenue, New Delhi
Subject: Central Excise – Procedure for despatch of one consignment of more than one vehicle – Regarding.
Representations have been received by the Board regarding difficulties faced by the manufacturers in documentation where a consignment of capital goods like heavy machinery etc. which are first assembled by the manufacturer and are later dis- assembled only for the convenience of transport is loaded in more than one vehicle and travel separately.
2. Following difficulties have been experienced in this regard:-
(a) It is not possible to load on the entire machinery in one vehicle.Online GST Certification Course by TaxGuru & MSME- Click here to Join
(b) Duty in such cases is paid on the whole consignment as an excisable goods on total value and therefore it is not possible to indicate separate value for each part consignment.
3. It is observed that issue of single invoice is permissible under Rule 52A (4) and Rule 57GG (&) for a consignment which is loaded on more than one vehicles provided all such vehicles travel together as a convoy.
4. Where such a consignment is loaded in more than one vehicle, which travel separately or at intervals, the following procedure should be followed:-
4.1 The manufacturer will intimate, on case to case basis, his option to avail this special procedure in writing for the complete machinery sought to be cleared in a number of individual part consignments after first being assembled to the Jurisdictional Assistant Commissioner of Central Excise with a copy to the Jurisdictional Range Superintendent of Central Excise along with the description of such machinery /equipment giving reference to the declaration filed under Rule 173 B of Central Excise Rules, 1944, its tariff classification and the list of components of such machinery/ equipment in dis-assembled form and its value and an undertaking as given in Annexure-A. These intimations shall be given at least 48 hours prior to removal on any working day.
4.2 Though separate verification need not necessarily be made for each and every consignment, before the removal of the first consignment Assistant Commissioner should verify the relevant declaration filed under Rule 173B within a fortnight of its filing and should satisfy himself that the various part consignments are indeed constituents of the complete machinery which has been first assembled.
4.3 A separate invoice shall be made out in respect of each conveyance on which the part consignment is loaded.
4.4 The manufacturer will pay the entire duty on the first such invoice (hereinafter referred to as “Parent Invoice”) on the basis of the entire value of the machinery unit/ equipment. This parent invoice shall be prepared quoting all vehicle numbers, total value/ duty of the consignment. An inventory shall be annexed to the invoice giving detailed item-wise description as loaded in different vehicles.
4.5 On subsequent part invoices, the Serial Number of the Parent Invoice and the PLA debit entry number / RG23A Part -II/ RG23C Part-II debit entry number through which the duty is paid on the said parent invoice, should be mentioned. Such part invoices should be endorsed as “Part Invoices of Parent Invoice No. …………….. “.
4.6 Photocopy of the duplicate copy of parent invoice duly attested by the authorised signatory of the Company shall accompany each conveyance.
4.7 Credit shall be taken only on receipt of parent invoice and the entire consignment.
4.8 Other provisions of Central Excise Rules, 1944 regarding availment of credit shall be applicable as usual.
5. It is clarified that where the part consignments travelling in a convoy or separately do not constitute “complete machinery” falling under a single heading or sub-heading each such consignment will be classified on merits say, as “parts” and also a separate invoice showing the separate value arrived at under section 4 of Central Excise Act, 1944 and the duty must accompany each such consignment.