9th February, 2001
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: Pass-Out System – Special Procedure for clearance of the liquid gases – Regarding.
I am directed to say that consequent to deletion of clause (iv) of sub-rule (1) of rule 173G, doubts have been expressed whether the Pass-Out System specified by the Board in Circular No. 270/104/96-CX dated 18.11.1996 is necessary considering that now duty can be discharged on fortnightly basis. If it is necessary, whether the said procedure could be followed within the scope of new rule 173G(1).
2. The Board examined the matter and it is found that the liquid gases are of exceptional nature because the quantity of removal can be ascertained only after goods are actually delivered from the specialised cryogenic tankers into the special tanks of the buyers. As a result, the Central Excise duty cannot be determined at the time of clearance and the CENVATABLE invoice can also not be prepared at that point of time. Considering this special nature of removal, it has been decided to issue the following procedure in supersession of Circular No. 270/104/96-CX dated 18.11.96, except as respects things done or omitted to be done before such supersession: –
3. Removal of liquid gases will be permitted in a tanker lorry from the factory of the manufacturer on provisional determination of central excise duty liability and provisional entry in Daily Stock Account maintained under rule 53 of the Central Excise Rules, 1944, at the time of clearance from the factory. The invoice under rule 52A will be allowed to be prepared afterwards and the duty will be discharged under the provisions of new sub-rule (1) of rule 173G, subject to the observance of the following procedure: –
3.1 The assessee shall submit a written request to the Commissioner of Central Excise alongwith an undertaking that he shall abide by all conditions and restrictions as may be specified, for permitting the Pass-Out System for removal of Liquid Gases.
3.2 The liquid gases shall be removed in the tanker lorry under the Pass-out document (as per proforma enclosed as Annexure) duly filled in.
1. The pass-out document shall indicate, inter alia, the description, net quantity of goods being despatched (gross weight minus tare weight of lorry tanker), duty liability on such net quantity.
2. This net quantity and duty leviable thereon (provisional) shall be provisionally entered/recorded in the Daily Stock Account maintained under rule 53 of the Central Excise Rules, 1944, at the time of clearance from the factory. For the sake of clarity it is mentioned that such “provisional calculation of duty and provisional entry should not be construed as “provisional assessment under rule 9 of the Rules”.
3. The pass out document shall be made out in triplicate by using double-side carbon paper.
4. All pass-out documents shall bear printed serial numbers and shall be pre-authenticated by the proper central excise officer before they are put to use.
5. The original and duplicate copy of the aforesaid document will accompany the goods to the destinations. The assessees shall retain the Triplicate copy.
3.3 The quantity delivered to or received by each customer shall be recorded on original and duplicate copies of each pass-out document under the customer’s signature.
3.4 On completion of deliveries, the quantity actually delivered, the quantity actually returned in tanker lorry and the quantum of loss, if any, shall be duly recorded in the Daily Stock Account. The provisional entry relating to quantity of removal and the duty liability shall be converted into final entry in Daily Stock Account immediately after the return of the lorry tanker [after a single trip/transportation] or latest by next morning.
3.5 After return of the tanker lorry, customer-wise Invoice/A.R.3A may be prepared based on the quantity actually delivered. Central Excise duty where payable shall be determined and paid by the assessee in terms of sub-rule (1) of rule 173G on the total quantity of the non-exempted liquid gases delivered to the customer and on the quantity of transit loss and other losses, if any.
3.6 In case both non-exempted and exempted deliveries are effected from the same tanker, the respective invoice/A.R.3A raised subsequently, must indicate the nature of each delivery very distinctly.
3.7 In case of transit and/or other losses the assessee shall be liable to pay central excise duty on the quantity of such losses as determined at the highest effective rate prevailing on the date of removal of the consignment. The assessee shall give a written undertaking in this regard, on each copy of Pass-out document covering the goods.
3.8 All Invoices/A.R.3As shall be dated as per the date of despatch of the consignment and cross-reference shall be maintained in the pass-out document.
3.9 The original of the Pass-out document showing particulars of the quantity despatched, quantity delivered to the individual consignees/customers, Final entry No./date in Daily Stock Account including quantity returned and accounted for therein, shall be handed over to the Sector Officer immediately after the return of the lorry tanker and the final accountal. The consignor factory should obtain an acknowledgement for the submission of the original Pass-out document. The assessee shall retain the duplicate copy of the completed Pass-out document for his record.
3.10 Before filling the lorry tanker for the next supply/clearance, the quantity of the goods already contained therein (left over undelivered goods of the previous supply) should be re-ascertained and any difference between the quantity returned from the previous clearance and the quantity re-ascertained as above shall be treated as storage loss within the factory on which the assessee shall be liable to pay duty. Such differential quantity and the particulars duty thereon should be recorded in the appropriate column of Daily Stock Account.
4. The Commissioner of Central Excise may prescribe any additional conditions or restrictions or relax any provisions of this circular, as deemed fit, keeping in view the local requirements and the revenue safeguards.
7. The trade and field formations may suitably be informed.
8. Receipt of this Circular may please be acknowledged.
9. Hindi version will follow.
Under Secretary (CX.6)
Pass Out Document
[For removal of Liquid gases in terms of rule 173G(1)]
1. Name & Address of the manufacturer _____________________________________________
2. Registration Number ______________________________________________________________
3. New ECC Number:
4. Range: ________________ Division: _____________ Commissionerate _________________
5. Date of Removal–__________________ Time of Removal_________________
(1) Description of the goods and its Tariff Sub-Heading No.
(2) Lorry Tanker Registration No.
(3) Gross Weight of the loaded tanker at the time of despatch
(4) Tare Weight of Lorry Tanker
(5) Net Weight of goods despatched [(3) – (4)]
Duty leviable on the Net Weight of goods despatched (calculated provisionally):
Provisional Entry No. in Daily Stock Account____________________________________________
(i) Supply Schedule
of the Customer
|To be filled latest by the next working day of the return of Lorry Tanker in the factory
|Invoice No. & date
Entry No. in Daily Stock Account
|Quantity of goods returned to factory in lorry tanker
|Quantity of goods lost in transit & other losses, if any
I/we hereby solemnly declare that information above is true and correct in all respects.
Signature of the Registered person or his authorised agent
I/We am/are taking clearance of the aforesaid goods under special procedure as per Commissioner of Central Excise permission F.No.__________________ dated _______ under a specific condition that any quantity not shown as delivered to the customer/consignees including the quantity attributable to all kinds of losses will be liable to full payment of duty by me/us. Accordingly, I/we hereby undertake that I/we will pay central excise duty on the entire quantity of such unaccounted goods including all types of losses at the highest effective rate prevailing on the date of removal of the consignment.
Signature of the Registered person or his authorised agent