Circular No. 607/44/2001-CX
13th December 2001
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: Clarification regarding return of duty paid goods for refining, re-making, etc.Online GST Certification Course by TaxGuru & MSME- Click here to Join
I am directed to say that doubts have arisen whether, as per Rule 16 of Central Excise (No.2) Rules 2001, goods manufactured only by same manufacturer can be brought into the factory for refining, repair, re-making etc. The Board has also received representations from trade, especially the transformer manufacturers in this regard stating that they are no longer allowed to bring in duty paid transformers for repairs and reconditioning other than their own manufactured transformers which is creating difficulties.
2. The Board has examined the matter. The said Rule 16 provides for return of duty paid goods to the factory for being re-made, refined, reconditioned or for any other reason .It was in the context of the word ‘return’ that the Central Excise Manual issued on 1.9.2001states that goods should return to the same factory in which they were manufactured. However, Board observes that under erstwhile Rule 173H of Central Excise Rules 1944, the facility of receipt of duty paid goods in a factory for purposes specified there in was available regardless of who manufactured the said goods.
3. Accordingly the Board has decided that the word ‘return’ in Rule 16 referred above need not be interpreted strictly. Receipt of duty paid goods in the factory of manufacturer for the purpose specified in said rule may be allowed even in respect of goods not manufactured by them subject to adherence of other conditions prescribed therein.
4. The field formations may suitably be informed.
5. Receipt of this Circular may please be acknowledged.
6. Hindi version will follow.