Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods – Assistant Commissioner to ensure that the goods are so used
RULE 6 of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, reads as:-
Recovery of duty in certain cases. - Where the subject goods are not used by the manufacturer for the intended purpose, the manufacturer shall be liable to pay the amount equal to the difference between the duty leviable on such goods but for the exemption and that already paid, if any, at the time of removal from the factory of the manufacturer of the subject goods, alongwith interest and the provisions of section 11A and section 11AB of the Central Excise Act, 1944 (1 of 1944) shall apply mutatis mutandis for effecting such recoveries.
Now, it is amended (the words marked in red above) to read as “The said Assistant Commissioner or Deputy Commissioner shall ensure that the goods received are used by the manufacturer for the intended purpose and where the subject goods are not used”
Now, how is the Assistant Commissioner to ensure that the assessee uses the goods for the intended purpose? Thank God they did not make the rule to read as, “the assessee shall prove to the satisfaction of the Assistant Commissioner that the goods were used for the intended purpose”. Assessees would have had a tough time satisfying the Assistant Commissioners.
The Monthly Return proforma is also changed to include two more columns:-
10. Specified purpose for procuring the goods at concessional rate of duty.
11. Whether the goods used for specified purpose or not. In case of export, specify the quantity exported with details of ARE 1/ARE-2.
Notification NO. Dated: June 10, 2009