Removal of liquid gases – No pre-authentication
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, Board had prescribed a Special Procedure vide Circular No. 569/6/2001- CX dated 09.02.2001.
The Procedure requires pre-authentication of the pass-out documents by the departmental officers.
Departmental pre-authentication is an archaic and anarchic procedure. So the Board has relaxed and instructs that:
“an assessee desirous of exemption from the pre-authentication by the Central Excise Officer may submit a written request to the jurisdictional AC/DC of the Division, who may grant the exemption for a period of one year at a time after satisfying that the internal control system followed by the assessee is reasonable and adequate to ensure determination of correct quantity of liquid gases sold to customer, subject to the condition that the permission is liable to be withdrawn in case of misuse of the facility by the assessee.”
Why again this permission from the Assistant Commissioner? It is very difficult to satisfy some Assistant Commissioners, especially the ones who do not recognise the Board or the Tribunal!
CBEC Circular No. 894 /14 /2009- CX ., Dated: August 20, 2009