CBEC's Circular on Levy of Clean Energy Cess - issued on 24th June but released on 21st July
THE TRU is the largest manufacturer of notifications, clarifications, circulars, instructions – litigation! But they are very shy of making their creations public – for fear of criticism perhaps. They issued a letter on 'clean energy Cess' on 24th June, but never made it public till 21st July. The CBEC [TRU] clarifies that:
+ Cess would be payable on quantity removed during a month on self assessment basis.
+ The due date for payment has been fixed as the 6 th (for e- payment) / 5th (for payment in any other manner) of the month following the next month to which the removals relate i.e. payment for removals during the month of July,2010 should be paid by the 5 th /6 th of September,2010. However, on imports the cess would be payable w.e.f. 1st July, 2010.
+ Adjustment of excess payment, if any, is permissible by the next payment date.
+ Monthly return indicating the total quantity removed along with cess payment has been prescribed. Since this return is not compatible with ACES software electronic filing would not be feasible at this stage. Returns may hence be accepted manually by the jurisdictional Range/Division of Central Excise.
+ General penalty of Rs 10,000 has been prescribed for any contravention.
+ Specified goods are to be removed under cover of proper documents. However, this need not be an invoice . It has been prescribed in rule that any document specifying the quantity removed and name of the consignee would suffice.
Although the levy of Clean Energy Cess comes into force on the 1st of July, 2010, the first payment from registered producers would be due only by the 5th of September, 2010. In the meanwhile, the office of Chief Controller of Accounts has already been requested to assign a minor head for the payment of this cess both on domestic and imported coal. Relevant communication conveying this to the field formations would be issued in due course.
TRU wants that the provisions of the relevant notifications and this letter may be brought to the notice of field formations. But why did they wait for more than a month to communicate this letter?
CBEC Letter in F.No.354/72/2010-TRU; dated June 24 2010.