Pan Masala, Gutkha and Chewing Tobacco – anti evasion measures
It seems the FM was not very happy with the collection of revenue from this highly addictive and evasive sector, but the mandarins of north block had promised him that all loopholes will be plugged and Revenue will rise in the next few months. To start with, Board has decided that
1. All manufacturers of Pan Masala, Gutkha and Chewing Tobacco shall intimate the range Superintendent, details of the packing machines like model, No. of machines, No. of pouches produced by each machine.
2. The information is to be filed by 12th September 2007. [This instruction was issued on 7.9.2007 and it must be on its way to the Commissioners. When will it reach the manufacturers and are they all not offenders if they are not able to file the intimation by 12.9.2007?]
3. In case, the unit brings any new filling and packing machine into the factory, the intimation should be filed before 24 hours of bringing in the said machine.
4. The Range Superintendent or any other officer authorized by the Commissioner of Central Excise may verify the number of machines available in the manufacturing premises and the representatives of assessee would be required to countersign the said verification report.
5. In case, any of the said machine is not being used, for any reason, the assessee shall intimate forthwith to the jurisdictional range officer or any other authorized officer as above, the details of said machine. Simultaneously, the assessee shall remove the said non-working machine out of the manufacturing premises and store the same in other premises and address of such other premises shall also be intimated. However, in case, it is not possible to remove the non working machines out of the manufacturing premises, these would be sealed by the range officer or any other authorized officer as above, in the manner that these cannot be operated.
6. Whenever, the assessee wants to use the sealed machines, he shall intimate the range officer or any other authorized officer as above and the officer shall remove the seal on receipt of the request.
7. The assessee shall maintain records of receipt, consumption and stock of main inputs, like, beetle nut, tobacco and packing material. The said records shall be maintained and kept in the manufacturing premises only and made available for verification by the officers.
8. Any violation in complying with the above instruction would attract penal action as provided under the law.
Will this bring in more Revenue?
CIRCULAR NO. 854/12/2007/CX ,Dated : September 7, 2007