5th September, 2002.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
I am directed to refer to Central Excise (Removal of Goods under Concessional Rate of Duty) Rules, 2001 and Board”s Circular No.617/8/2002-CX dated 6.2.2002 relating to movement of goods outside the factory and to say that representations have been received from the trade expressing some difficulties in operating under the said Rules in the following circumstances:
|Removal of goods received under the said Rules after having been partially processed during the use in the industrial process;
|Removal of such goods for any other processes besides test, repair, refining and reconditioning.
2. Board has examined the matter. Under erstwhile Central Excise Rules, 1944 provisions relating to the above mentioned situations were provided for under Chapter X. It is the view of the Board that these factors can be extended under the new Rules also. It is also the view of the Board that the Commissioner of Central Excise can allow removal of goods in the situations mentioned above under Rule 31 of the Central Excise Rules, 2002.
3. Accordingly, it is clarified that goods received under Central Excise (Removal of Goods under Concessional Rate of Duty) Rules, 2001 may be allowed, to be removed to a place outside the factory as such or after having been partially processed for test, repair, refining, reconditioning or carrying out any other operations necessary for completing the industrial processes and return thereafter to the factory for further use in the industrial processes. Further, the said removal may be allowed by Commissioner of Central Excise by exercising powers conferred under Rule 31 of the Central Excise Rules, 2002 subject to safeguard of revenue..
4. The Board Circular No.617/8/2002-CX dated 6.2.2002 is modified to the extent mentioned supra.
5. The field formations may suitably be informed.
6. Receipt of this Circular may please be acknowledged.
7. Hindi version will follow.
(Circular No.657/48/2002-CX, dated 5-9-2002, as amended by the corrigendum issued vide Circular No. 669/60/2002-CX., dated 1-10-2002)