Circular No.651/42/2002- Central Excise
F.No. 267/72/96-CX-8
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
7th August, 2002
Subject: Cash recovery of money credit scheme- Applicability of Section 11D of the Central Excise Act, 1944- regarding
I am directed to invite reference to Board’s circular 216/50/96-CX dated 4.6.96 regarding applicability of Section 11D of Central Excise Act,1944 to the cases in which money credit has been availed and utilised for the payment of duty on finished excisable products. It was directed not to take precipitative action to enforce demands as the matter was under examination by Board.
2. The matter has been examined. Board is of the view that Section 11D of Central Excise Act, 1944, requires a person liable to pay duty to deposit any amount collected in excess of the duty assessed or determined and paid on any excisable goods from the buyer of the goods in any manner as representing duty of excise. Therefore, in cases where duty collected has been deposited with the Government, Section 11D shall not apply. This position shall not undergo any change if the money credit available with the manufacturer is utilised to pay duty on any finished excisable product and this duty is collected from the buyer. Pending cases may be finalised accordingly.
1. Trade and field formation may be informed suitably.
2. Receipt of the same may be acknowledged.
3. Hindi version shall follow.
