221. Responsibility of a corporate body for making
declaration and obtaining Registration Certificate .-
(1) Where any
trade or business in respect of which declaration is required to be made
by these rules is carried on by a corporation, the declaration shall be
under the seal of the corporation and signed by the chairman or some director
of the corporation or by its secretary or other principal officer.
(2) Any person signing a declaration, and also the corporation
under whose seal the declaration is made, shall be liable for the payment
of all duties charged and to all penalties and confiscations incurred,
in respect of the trade or business to which the declaration relates.
(3) A declaration in respect of a trade or business carried
on by a corporation shall be treated as being under the seal of the corporation
if it is signed by some person authorised in that behalf by the corporation
under its seal.
221A. Exemption from execution of bonds by Central
Government undertakings and furnishing of security or surety by State Government
undertakings.- Notwithstanding anything contained elsewhere in
these rules, every undertaking owned and managed directly through any Ministry,
Department or Directorate by-
(a) the Central Government, is exempt from the
execution of any bond;
(b) a State Government, is exempt from furnishing any
security or surety or bond,
where the execution of such bond, or, as the case may be,
furnishing of such security or surety, is required by or under any other
provision of these rules.
Explanation.-For the avoidance of doubts, it is
hereby declared that for the purposes of this rule, an undertaking owned
or controlled by the Central Government or State Government does not include-
(i) any undertaking belonging to a corporation
owned or controlled by the Central Government or a State Government and
established by or under a Central, Provincial or State Act; or
(ii) any undertaking belonging to a Government company
within the meaning of section 617 of the Companies Act, 1956 (1 of 1956).
223. Stocks of excisable goods to be stored in an orderly
manner.- All excisable goods stored in the premises of a person registered
under these rules or stored in a public warehouse, whether without or after
payment of duty, shall be stocked in an orderly manner, so as to facilitate
their counting and verification by the Central Excise Officer with reference
to Entry Book or warehouse register.
223A. Account of stock of goods in a factory
or warehouse to be taken and balance to be struck.- As often
as the Commissioner may deem it necessary or proper, the stock of excisable
goods remaining in a factory, warehouse or store-room registered or approved
for the storage of such goods shall be weighed, measured, counted or otherwise
ascertained in the presence of the proper officer; and if the quantity
so ascertained is less than the quantity which ought to be found in such
premises (after taking into account receipts and deliveries, and making
such allowance for waste by evaporation, or other natural causes, as the
proper officer may consider reasonable, and as may be in accordance with
any instructions issued by the Central Board of Excise and Customs) the
owner of such goods, or if the premises be a public warehouse, the keeper
thereof, shall, unless the deficiency be accounted for to the satisfaction
of the proper officer be liable to pay the full amount of duty chargeable
on such goods as are found deficient and also a penalty which may extend
to two thousand rupees.
224. Restrictions on removal of goods.- (1) Goods
, other than those to which the provisions of Chapter VII-A of these rules
apply, may not be delivered from a factory registered under these rules,
or from a warehouse, before six o" clock in the forenoon or after six o"clock
in the afternoon, nor at any hour on Sundays and public holidays except
by permission of the Commissioner, and under such conditions,and on payment
of such fees, as the Commissioner may by general or special order require.
Notwithstanding anything contained in these rules, no goods shall be removed
from a factory or warehouse between appointed time and 12.00 (midnight) on the
appointed date unless, -
assessee has obtained permission of the Commissioner under sub-rule (2A) of
application for such removal in the Form A.R.1 specified in Appendix-I to
these rules has been presented by the assessee to the proper officer and
such an application has been acknowledged by the proper officer before 5.00
P.M. on the working day immediately preceding the appointed date:
that no such application for the removal of goods which may come into existence
at any time after the appointed time shall be acknowledged under this clause
unless the terms, conditions and limitations imposed by the Commissioner in this
behalf are complied with;
- For the purposes of this sub-rule and sub-rule (2A), "goods" include
goods which may come into existence at any time after the appointed time.
Where an assessee intends to remove goods from a factory or warehouse under
sub-rule (2), he may make an application in this behalf in writing to the
Commissioner undertaking to pay duty at the enhanced rate, if any, that may be
applicable to such goods with effect from the date immediately following the
appointed date and to comply with such conditions as the Commissioner may
specify and thereupon the Commissioner may, if he considers it necessary or
expedient in the public interest so to do, permit the removal of such goods.
(3) No excisable goods shall, in excess of the quota determined
in the manner provided for in sub-rule (4), be removed for home consumption
from a factory registered under these rules or from a warehouse during
any week in such period not exceeding four weeks in a year as the Central
Government may, by notification in the Official Gazette, from time to time
Provided that the Central Government may, if it is satisfied
that it is necessary or expedient in public interest so to do, permit,
by general or special order, any assessee or class of assessees-to remove,
subject to such conditions as it may specify, such goods for home consumption
in excess of the said quota from the factory or, as the case may be, from
(4) The quota referred to in sub-rule (3) shall, in a
case where excisable goods are liable to duty-
(i) at a rate dependent on the value thereof,
be one hundred and twenty per cent of the weekly average value of such
(ii) with reference to the quantity thereof, be one hundred
and twenty per cent of the weekly average quantity of such goods,
removed for home consumption from the factory or, as the
case may be, from the warehouse, during the twelve months immediately preceding
the month in which the removal of such goods is subject to the provisions
of sub-rule (3); and if, in any case the quota is not determinable in the
aforesaid manner, it shall be determined by the Commissioner in such manner
as he may deem fit.
(5) For the purposes of sub-rules (3) and (4)- (i) the
expression "excisable goods" shall include-
(a) goods initially removed from the factory
or warehouse for being warehoused or for being exported under bond, but
subsequently diverted for home consumption on payment of duty; and
(b) goods manufactured prior to the imposition of duty
thereon and removed without payment of duty from the factory during the
period of twelve months referred to in sub-rule (4);
(ii) the expression "twelve months" shall mean-
(a) in the case where a factory starts production
or manufacture of excisable goods or a warehouse is established for lodging
excisable goods, for the first time during the twelve months preceding
the month in which the removal of such goods is subject to the provisions
of sub-rule (3), the number of complete weeks commencing from the date
of production or from the date of establishment of the warehouse, as the
case may be, and ending on the day before the first day of such month;
(b) in a case where a factory is closed on account
of any lockout or strike during the period of twelve months referred to
in sub-clause (a), fifty-two weeks less the number of completed weeks of
such lockout and strikes; and
(c) in any other case, fifty-two weeks.
(6) The Central Government may, if it is satisfied that it
is necessary or expedient in public interest so to do, relax, by general
or special order, the provisions of sub-rules (1), (2) and (2A) and the
provisions of clause (iv) of sub-rule (2) of rule 173G, subject to such
conditions as it may specify in such order.
224A. Cancellation of Central Excise documents.-
Where goods in respect of which an application for clearance or removal
has been made under rules 52,158 or 185, are not cleared or removed within
ten days of the proper officer"s completing,-
(i) in the case of clearances for home consumption,
the assessment memorandum; and
(ii) in the case of removal from one warehouse to another
or for export, the examination or check-weighment;
the goods shall be liable to re-examination or re-weighment
before the proper officer allows clearance or removal thereof:
Provided that if the applicant does not require such clearance
of removal he shall apply in writing to the proper officer for cancellation
of the application therefor and shall, unless the applicant shows to the
satisfaction of such officer that the application had to be cancelled due
to circumstances beyond his control, pay a fee of rupee one only for every
such application, and thereupon the duty, if any, paid by the applicant
shall be refunded:
Provided further that no application for clearance for
home consumption presented at any time before the date appointed for the
presentation of the annual budget of the Central Government to Parliament
shall be cancelled without the prior approval of the Central Board of Excise
and Customs , if a request in respect of the cancellation for such application
is received after 5.00 P.M. on that date.
224B. Duplicates of documents may be granted on payment
of fees.- A duplicate of any certificate, registration certificate
, transport permit or other document issued to any person may, at the discretion
of the proper officer on payment of a fee of rupees thirty be furnished
to such person, if the proper officer is satisfied that no fraud has been
committed or is intended by the applicant.
225. Producer or manufacturer liable for removal of
goods by any person.- If any excisable goods are, in contravention
of any condition prescribed in these rules, removed by any person from
the place where they are produced, manufactured or warehoused, the producer
or manufacturer or the registered person or keeper of the warehouse shall
be held responsible for such removal, and shall be liable to be dealt with
according to the provisions of the Act or the rules as if he had removed
the goods himself.
226A. Electronic maintenance or generation of records,
returns and documents using computer.- (1) Any person may electronically
maintain or generate all or many of the records, returns, invoices and
other documents prescribed under these rules, using a computer, in electronically
(i) printouts of each record and document
are taken at the end of each calendar month;
(ii) printouts of such records, returns,
and documents, and copies of invoices, are kept in bound folder;
(iii) each page of the record bears
a running serial number and name and address of the person;
(2) The Assistant Commissioner of Central Excise or Deputy
Commissioner of Central Excise may, for reasons to be recordee in writing,
prohibit any person from maintaining or generating any records, returns,
invoices or other documents in the manner prescribed under sub-rule (1)
227. Provision and maintenance of weighing and measuring
apparatus.-(1) Every person registered to deal in excisable goods
shall render all necessary assistance to officers in taking account of
such goods in his possession and shall, where so required by the Commissioner
by written order, provide sufficient and just scales and weights, or a
correct weighing machine, capable of weighing the largest package of such
goods which may be packed on his premises and, where necessary, a set of
standard measures, for the purpose of weighing, measuring and taking an
account of the goods in his warehouse, stock or possession, and of any
vessel used for the purpose of containing any such goods.
(5) For any refusal or neglect on the part of a registered
dealer to comply with any of the provisions of this rule he shall be liable
to a penalty which may extend to one thousand rupees.
228. Provision and maintenance of locks.- (1) Where
any warehouse, room, place, vessel, or fitting belonging to any person
registered to deal in excisable goods is by these rules, or by any general
or special order of the Central Board of Excise and Customs, or of the
Commissioner, directed to be secured or locked, the registered person and,
in the case of a public warehouse, the warehouse keeper, shall, to the
satisfaction of the proper officer, provide, affix, repair and renew all
fastenings requisite for the purpose of enabling officers to affix locks
thereto or otherwise to secure them.
(2) If the registered person or warehouse-keeper fails
so to do, the proper officer may provide, affix, repair, or renew the fastenings,
and the expense thereof shall be paid on demand by the registered person
or warehouse-keeper, as the case may be.
(3) All requisite locks or keys shall be provided by the
Central Government at the expense of the Revenue.
(4) If any registered person or warehouse-keeper fails
on demand to pay the expense of providing, affixing, repairing or renewing
fastenings, as prescribed in sub-rule (2), or if any registered person
or warehouse-keeper or his servant or workman, wilfully destroys or damages
any such fastening, or any lock or key belonging thereto, or any lock label,
or improperly obtains access into any warehouse, room, place, vessel, or
fitting, or has any fastening, vessel or fittings so constructed that the
security intended to be obtained by any lock or fastening may be defeated,
the registered person or warehouse-keeper shall be liable to a penalty
which may extend to two thousand rupees.
229. Provision of accommodation at factory or warehouse.-(1) Every person manufacturing or storing goods on which excise duty
is to be levied shall provide and maintain to the satisfaction of the Commissioner,
for the use of the officers in attendance at the factory or warehouse,
furniture and sufficient and proper accommodation and sanitary accommodation
within the factory or warehouse premises; and every manufacturer of excisable
goods shall, where so required by the Commissioner, provide suitable lodging
conveniently situated to the factory premises at a rent not exceeding ten
per cent of the pay of each officer so accommodated:
Provided that where the limit of rent specified above
for such lodging falls short of the rent prevailing in the area the rent
payable may be increased by an amount not exceeding Rs. 20 in each case.
(2) A breach of this rule shall be punishable with a penalty
which may extend to one thousand rupees.
230. Goods, plant and machinery chargeable with duty
and not paid.- (1) When the duty leviable on any goods is owing from
or by any person carrying on trade or business, whether as a producer,
manufacturer or as dealer in such goods, all excisable goods, and all materials
and preparations, from which any such goods are made, and all plant, machinery,
vessels, utensils, implements and articles for making or manufacturing
or producing any such goods, or preparing any materials, or by which the
trade or business is carried on, in the custody or possession of the person
carrying on such trade or business, or in the custody or possession of
any agent or other person in trust for or for the use of the person carrying
on such trade or business, may be detained for the purpose of exacting
such duty; and any officer duly authorised by general or special order
of the Central Board of Excise and Customs or the Commissioner may detain
such goods, materials, preparations, plant, machinery, vessels, utensils
and articles until such duties or any sums recoverable in lieu thereof
are paid or recovered.
(2) Where any such person transfers or otherwise disposes
of his business in whole or in part, or effects any change in the ownership
thereof, in consequence of which he is succeeded in the business or trade
or part thereof by any other person or persons, all excisable goods, materials,
preparations, plant, machinery, vessels, utensils, implements and articles
in the custody or possession of the person or persons succeeding may also
be detained for the purpose of exacting duty due from the producer, manufacturer
or dealer up to the time of such transfer, disposal or change, whether
such duty has been assessed before such transfer, disposal or change, but
has remained unpaid, or is assessed thereafter.
231. Matches and excisable tobacco products not to
be sold except in prescribed containers bearing a Central Excise
Stamp or label.- Save as otherwise provided by these rules, if any
matches or excisable tobacco products are found in the possession of any
dealer in or retailer of such goods, not being affixed with Central Excise
Stamp , wrapped or labelled as hereinbefore prescribed or of which the
Central Excise Stamp , wrapper or label is cut or torn, or the wrapper
or other container bears any other mark or appearance of having been opened
or tampered with, such goods shall be liable to confiscation and such dealer
or retailer shall be liable to a penalty which may extend to one thousand
232. Officer shall not disclose information learned
in his official capacity.- If any officer except in the discharge
in good faith of his duty as such officer or in pursuance of such special
or general directions as may be issued by the Central Board of Excise and
Customs, discloses any particulars learned by him in his official capacity
in respect of any goods, he shall be liable to a penalty not exceeding
one thousand rupees.
232A. Publication of names and other particulars of
persons.- (1) Subject to the provisions of sub-rule (5), the Commissioner
shall, once in every three months, cause to be published in the Official
Gazette the names and addresses and other particulars specified in sub-rule
(2), of the following categories of persons, namely:-
(a) persons who have been convicted by a court
under section 9 of the Act;
(b) persons who have been found by an officer referred
to in section 33 of the Act to have contravened any of the provisions of
the Act or rules made thereunder and on whom a penalty of ten thousand
rupees or more has been imposed by such officer.
(2) The other particulars referred to in sub-rule (1) are:-
(a) the provisions of the Act or rules made thereunder
(b) the amount of penalty imposed;
(c) the value of excisable goods or other property ordered
to be forfeited by a court under section 10 of the Act or adjudged by the
officer referred to in section 33 to be confiscated;
(d) amount of fine in lieu of confiscation, if any, imposed
under section 34 of the Act;
(e) particulars of any registration certificate revoked
under rule 181.
Explanation.-In the case of a firm, company or other
association of persons, the names of the partners of the firm, directors,
managing agents, secretaries and treasurers or managers of the company,
or the members of the association, as the case may be, may also be published
if, in the opinion of the Commissioner, the circumstances of the case justify
(3) Notwithstanding anything contained in sub-rule (1),
the Central Government may, if it is satisfied that it is necessary or
expedient so to do, direct the Commissioner to publish the names, addresses
and other particulars specified in sub-rule (2) of any other person who
has been found guilty of contravention of the Act or of any rule made thereunder.
(4) Notwithstanding anything contained in this rule, the
Central Government may, if it is satisfied that it is necessary or expedient
in the interest of investigations under the Act, security of State or friendly
relations with foreign States or otherwise in the interest of general public,
so to do, direct the Commissioner that names of any persons may not be
(5) No publication under sub-rule (1) shall be made in
respect of a person until the period for preferring an appeal under section
35 of the Act or to the first Appellate Court has expired without an appeal
having been preferred or such appeal having been filed, has been disposed
232B. Qualifications for authorized representatives.-
For the purposes of clause (c) of sub-section (2) of section 35Q , an authorized
representative shall include a person who has acquired any of the following
(a) a Chartered Accountant within the meaning
of the Chartered Accountants Act, 1949 (38 of 1949); or
(b) a Cost Accountant within the meaning of the Cost and
Works Accountants Act, 1959 (23 of 1959); or
(c) a Company Secretary within the meaning of the Company
Secretaries Act, 1980 (56 of 1980) who has obtained a certificate of practice
under section 6 of that Act; or
(d) a post-graduate or an Honours degree holder in Commerce
or a post-graduate degree or diploma holder in Business Administration
from any recognised university; or
(e) a person formerly employed in the Department of Customs
and Central Excise or Narcotics and has retired or resigned from such employment
after having rendered service in any capacity in one or more of the said
departments for not less than ten years in the aggregate.
Explanation.-In this rule "recognised University"
means any of the Universities specified below, namely:-
I. Indian Universities
Any Indian University incorporated under any law for the
time being in force in India;
II. Rangoon University;
III. English and Welsh Universities
The Universities of Birmingham, Bristol, Cambridge, Durham,
Leeds, Liverpool, London, Manchester, Oxford, Reading, Sheffield and Wales;
IV. Scottish Universities
The Universities of Aberdeen, Edinburgh, Glasgow and St.
V. Irish Universities
The Universities of Dublin (Trinity College), the Queen"s
University, Belfast and the National University of Dublin;
VI. Pakistan Universities
Any Pakistan University incorporated by any law for the
time being in force;
VII. Bangladesh Universities
Any Bangladesh University incorporated by any law for
the time being in force.
232C. Authority under section 35Q(5)(b).-
The Commissioner of Central Excise having jurisdiction in the proceedings
in which a person who is not a legal practitioner is found guilty of misconduct
in connection with that proceeding under the Act shall be the authority
for the purposes of clause (b) of sub-section (5) of section 35Q.
233- Power to issue supplementary instructions.-
The Central Board of Excise and Customs Chief Commissioners and Commissioners,
may issue written instructions providing for any supplemental matters arising
out of these rules.
233A. Issue of show cause notice before confiscation
of any property or imposition of any penalty.-No order confiscating
any property, or imposing any penalty on any person shall be made under
these rules, unless-
(a) a written notice stating the grounds on which
it is proposed to confiscate such property or to impose such penalty; and
(b) a reasonable opportunity of making a representation
in writing within such time as may be specified in the notice against the
grounds of confiscation or imposition of penalty mentioned therein and
of being heard in the matter; are given-
(i) Where the order relates to confiscation
of any property, to the person-in-charge of such property and,
where such person-in-charge
is not the owner of such property, also to the owner thereof; or
(ii) where the order relates to the imposition of any
penalty, to the person on whom such penalty is to be imposed:
Provided that the notice referred to in clause (a) and the
representation referred to in clause (b) may, at the request of the person
or persons concerned, be oral.
233B. Procedure to be followed in cases where duty
is paid under protest.- Where an assessee desires to pay duty
under protest he shall deliver to the proper officer a letter to this effect
and give grounds for payment of the duty under protest.
(2) On receipt of the said letter, the proper officer
shall give an acknowledgement to it.
(3) The acknowledgement so given shall, subject to the
provisions of sub-rule (4), be the proof that the assessee has paid the
duty under protest from the day on which the letter of protest was delivered
to the proper officer.
(4) An endorsement "Duty paid under protest" shall be
made on all copies of the gate pass, the Application for Removal and Form
R.T.12 or Form R.T. 13, as the case may be .
(5) In cases where the remedy of an appeal or revision
is not available to the assessee against any order or decision which necessitated
him to deposit the duty under protest, he may, within three months of the
date of delivery of the letter of protest, give a detailed representation
to the Assistant Commissioner of Central Excise or Deputy Commissioner
of Central Excise.
(6) In cases where the remedy of an appeal or revision
is available to the assessee against an order or decision which necessitated
him to deposit the duty under protest, he may file an appeal or revision
within the period specified for filing such appeal or revision, as the
case may be.
(7) On service of the decision on the representation referred
to in sub-rule (5) or of the appeal or revision referred to in sub-rule
(6) the assessee shall have no right to deposit the duty under protest:
Provided that an assessee shall be allowed to deposit
the duty under protest during the period available to him for filing an
appeal or revision, as the case may be, and during the pendency of such
appeal or revision, as the case may be.
(8) If any of the provisions of this rule has not been
observed, it shall be deemed that the assessee has paid the duty without
Note:-A letter of protest or a representation under
this rule shall not constitute a claim for refund.
234. Cancellation of former rules, orders and notifications.-The following rules, orders and notifications are hereby cancelled,
1. The Motor Spirit (Duties) Order, 1917.
2. The Kerosene (Duties) Order, 1922.
3. The Silver (Excise Duty) Order, 1930.
4. The Sugar (Excise Duty) Order, 1934.
5. The Matches (Excise Duty) Order, 1934.
6. The Mechanical Lighters (Excise Duty) Order, 1934.
7. The Steel Ingots (Excise Duty) Order, 1934.
8. The Northern India Motor Spirit (Duties) Order, 1938.
9. The Northern India Kerosene (Duties) Order, 1938.
10. The Northern India Sugar (Excise Duty) Order, 1938.
11. The Northern India Matches (Excise Duty) Order, 1938.
12. The Northern India Mechanical Lighters (Excise Duty)
13. The Northern India Steel Ingots (Excise Duty) Order,
14. The Northern India Silver (Excise Duty) Order, 1938.
15. The Bombay Sugar (Excise Duty) Supplementary Order,
16. The Madras Sugar (Excise Duty) Supplementary Order,
17. The Northern India Matches (Excise Duty) Supplementary
18. The Bombay Matches (Excise Duty) Supplementary Order,
19. The Madras Matches (Excise Duty) Supplementary Order,
20. The Motor Spirit and Kerosene Export (Nepal) Rules,
21. The Sugar Export (Afghanistan) Rules, 1939.
22. The Motor Spirit and Kerosene Export (Kashmir) Rules,
23. The Motor Spirit and Kerosene Export (Afghanistan)
24. The Tyres (Excise Duty) Order, 1941.
25. The Sugar Export (Confectionery) Rules, 1941.
26. The Matches Export (Afghanistan) Rules, 1941.
27. The Tyres Export (Afghanistan and Nepal) Rules, 1941.
28. The Sugar Exports (Iran) Rules, 1942.
29. The Tobacco (Excise Duty) Rules, 1943.
30. The Vegetable Product (Excise Duty) Rules, 1943.
31. The notifications of the Government of India in Finance
(i) No. 13-Customs dated 12th April, 1930.
(ii) No. 5-Exc., dated 3rd May, 1934.
(iii) No. 13-Exc., dated 30th June, 1934.
(iv) No. 7-Exc., dated 1st March, 1941.
(v) No. 67-Exc., dated27th September, 1941.
(vi) No. 32-Exc., dated 18th September, 1943.
(vii) No. 33-Exc., dated 18th September, 1943.