Central Excise Act SECTION 5A - EXEMPTION NOTIFICATIONS. (5) Every notification issued under sub-section (1) or sub-section (2A) shall,

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1 Central Excise Act SECTION 5A - EXEMPTION NOTIFICATIONS. (5) Every notification issued under sub-section (1) or sub-section (2A) shall, (a) unless otherwise provided, come into force on the date of its issue by the Central Government for publication in the Official Gazette; (b) also be published and offered for sale on the date of its issue by the Directorate of Publicity and Public Relations, Customs and Central Excise, New Delhi,. (5) Every notification issued under sub-section (1) or sub-section (2A) shall, unless otherwise provided, come into force on the date of its issue by the Central Government for publication in the Official Gazette...substituted by FA 2016 (6) Notwithstanding anything contained in sub-section (5), where a notification comes into force on a date later than the date of its issue, the same shall be published and offered for sale by the said Directorate of Publicity and Public Relations on a date on or before the date on which the said notification comes into force....omitted by FA 2016 Section 11A Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded.. (1) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, for any reason, other than the reason of fraud or collusion or any wilful misstatement or suppression of facts or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, Pr (a) the Central Excise Officer shall, within one year 2 YEARS from the relevant date, serve notice on the person chargeable with the duty which has not been so levied or paid or which has been so short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show-cause why he should not pay the amount specified in the notice;...fa 2016 ca.vv@gmail.com 1

2 Central Excise Act Instructions to Central Excise Officers. Sec 37B. The Central Board of Excise and Customs, may, if it considers it necessary or expedient so to do for the purpose of uniformity in the classification of excisable goods or with respect to levy of duties of excise on such goods, or for the implementation of any other provision of this Act...FA 2016 issue such orders, instructions and directions to the Central Excise Officers as it may deem fit, and such officers and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions Provided that no such orders, instructions or directions shall be issued (a) so as to require any Central Excise Officer to make a particular assessment or to dispose of a particular case in a particular manner; or (b) so as to interfere with the discretion of the Commissioner of Central Excise (Appeals) in the exercise of his appellate functions. Pr ca.vv@gmail.com 2

3 Infrastructure Cess introduced by FA 2016 From 1/3/2016 CHAPTER VII of FA 2016 INFRASTRUCTURE CESS Section 159. (1) In the case of goods specified in the Eleventh Schedule, being goods manufactured or produced, there shall be levied and collected for the purposes of the Union, a duty of excise, to be called the Infrastructure Cess, at the rates specified in the said Schedule for the purposes of financing infrastructure projects. (2) The cess leviable under sub-section (1), chargeable on the goods specified in the Eleventh Schedule shall be in addition to any other duties of excise chargeable on such goods under he Central Excise Act, 1944 or any other law for the time being in force. (3) The provisions of the Central Excise Act, 1944 and the rules made thereunder, including those relating to assessment, non-levy, short-levy, refunds, interest, appeals, offences and penalties, shall, as far as may be, apply in relation to the levy and collection of the cess leviable under sub-section (1) in respect of the goods specified in the Eleventh Schedule as they apply in relation to the levy and collection of the duties of excise on such goods under the said Act or the rules, as the case may be. (4) The cess leviable under sub-section (1) shall be for the purposes of the Union and the proceeds thereof shall not be distributed among the States. THE ELEVENTH SCHEDULE of FA 2016 All goods falling under heading 8703 of the First Schedule to the Central Excise Tariff Act, % Notification No. 1/2016 Infrastructure Cess Dated 1st March, 2016 This exemption notification has exempted Infrastructure cess in excess of cerain % Note : Generally net of exemption levy infrastructure Cess at the rate of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars not exceeding 4m in length and engine capacity of up to 1500cc. The cess on all other higher engine capacity vehicles (SUVs and bigger sedans) would be levied at the rate of 4%. Pr Rule 18 & Rule 19 Export procedures Notifications No. 42/2001, Notifications No 43/2001, Notifications No 19/2004 & Notifications No 21/2004 have been amended to give Rebate/Bond of Infrastructure Cess also. ca.vv@gmail.com 3

4 Cenvat Credit Rules 3 (1):A manufacturer or producer of final product or a provider of output service shall be allowed to take credit of, (1a) A provider of output service shall be allowed to take CENVAT credit of the Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, /6/2016 (vii)additional Duty of Customs leviable u/s 3(i) of the Customs Tariff Act, equivalent to duty specified in clauses (i), (ii), (iii), (iv), (v), (vi) and (vi-a) Provided that CCR shall not be allowed in excess of 85% on ships, boats and other floating structures for breaking up...1/3/2016 Rule 3 (4) The CENVAT credit may be utilized for payment of Provided also that the CENVAT credit of any duty specified in sub-rule (1) shall not be utilised for payment of the Swachh Bharat Cess leviable under section 119(2)n of the Finance Act, /2/2016 Provided also that the CENVAT credit of any duty specified in sub-rule (1), except the National Calamity Contingent duty in item (v) thereof, shall not be utilized for payment of the National Calamity Contingent duty leviable under section 136 of the Finance Act, /4/2016 Provided also that the Cenvat credit of any duty specified in sub-rule (1) shall not be utilised for payment of Krishi Kalyan Cess leviable under section 161 of the Finance Act, /6/2016 Pr 3(7)(d) Cenvat credit in respect of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) shall be utilised only towards payment of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, /6/2016 ca.vv@gmail.com 4

5 Cenvat Credit Rules Eligible Duties / Tax / Cess GOODS SERVICES Inputs & Capital Goods Domestic Imported Inputs & Capital Goods Inputs & Capital Goods i) i) ii) ii) iii) Pr i) ii) Input Service ca.vv@gmail.com 5

6 Cenvat Credit Rules BED...BED other then BED under 1/2011, ST NCCD... NCCD HEALTH CESS(FA 2005)...HEALTH CESS(FA 2005) CVD 3(1)...STUDIED SEPARATELY CVD 3(5)...BED other then BED under 1/2011 ST...BED other then BED under 1/2011, ST KKC...KKC CVD 3(1) BED BED other then BED under 1/2011, ST NCCD... NCCD HEALTH CESS(FA 2005)...HEALTH CESS(FA 2005) CEC(Now known as Clean Enviornment Cess), SBC & IC...ALWAYS PAYABLE BY CASH Pr 6

7 Documents and accounts. Rule 9. Cenvat Credit Rules (1) The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely : (a)an invoice issued by (i)a manufacturer for clearance of (i) a manufacturer or a service provider for clearance of...substituted 1/3/2016 (fa) a Service Tax Certificate for Transportation of goods by rail issued by the Indian Railways; or... 20/9/2016 Pr ca.vv@gmail.com 7

8 CC Rule 6(6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either (i)cleared to a unit in a special economic zone or to a developer of a special economic zone for their authorised operations; or (ii) cleared to a hundred per cent export-oriented undertaking; or (iii) cleared to a unit in an Electronic Hardware Technology Park or Software Technology Park; or (iv) supplied to the United Nations or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No.108/95-Central Excise, dated the 28th August, 1995, number G.S.R. 602(E), dated the 28th August, 1995; or (iva)supplied for the use of foreign diplomatic missions or consular missions or career consular offices or diplomatic agents in terms of the provisions of Notification No. 88a[12/2012-Central Excise, dated the 17th March, 2012, number G.S.R. 163(E), dated the 17th March, 2012]; or] (v) cleared for export under bond in terms of the provisions of the Central Excise Rules, 2002; or (vi)gold or silver falling within Chapter 71 of the said First Schedule, arising in the course of manufacture of copper or zinc by smelting 89; or (vii)all goods which are exempt from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under sub-section (1) of section 3 of the said Customs Tariff Act when imported into India and are supplied, (a) against International Competitive Bidding; or (b)to a power project from which power supply has been tied up through tariff based competitive bidding; or (c)to a power project awarded to a developer through tariff based competitive bidding, in terms of Notification No. 90a[12/2012-Central Excise, dated the 17th March, 2012]; Pr (viii)supplies made for setting up of solar power generation projects or facilities (ix)ethanol produced from molasses generated from cane crushed in the sugar season i.e. 1st October, 2015 onwards, for supply to the public sector oil marketing companies, namely, Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd. or Bharat Petroleum Corporation Ltd., for the purposes of blending with petrol, in terms of the provisions of S.No.40A of the Table in Notification No.12/2012-Central Excise, dated the 17th March, 2012, number G.S.R. 163(E), dated the 17th March, Cenvat Credit Rules...10/8/2016. ca.vv@gmail.com 8

9 Removal of goods at concessional Rate of Duty CENTRAL EXCISE (REMOVAL OF GOODS AT CONCESSIONAL RATE OF DUTY FOR MANUFACTURE OF EXCISABLE AND OTHER GOODS) RULES, 2016 NOTIFICATION NO.20/2016-C.E. (N.T.), DATED Which has becomme applicable from 16/3/2016 Rule 4 Information by applicant manufacturer to obtain benefit (1) An applicant manufacturer shall provide an information in duplicate in the Form I to the jurisdictional AC/DC and the AC/DC shall forward one copy of the information to the jurisdictional range Superintendent of the supplier manufacturer. (2) The applicant manufacturer shall number the information filed under sub-rule (1) in each financial year. (3) The applicant manufacturer may either provide separate information in respect of each of the supplier manufacturer of subject goods or provide combined information for multiple supplier manufacturers with details of each of them in Form I. (4) The applicant manufacturer shall provide the information from time to time to receive subject goods in quantities commensurate with expected consumption in the manufacturing process for a period of one year or less. (5) The applicant manufacturer shall execute a general bond with surety or security...26/9/2016 Provided that it shall be sufficient to provide a letter of undertaking by an applicant manufacturer against whom no show cause notice has been issued under sub-section (4) or sub-section (5) of section 11A of the Act or where no action is proposed under any notification issued in pursuance of rule 12CCC of the Central Excise Rules, 2002 or rule 12AAA of the CENVAT Credit Rules, Pr ca.vv@gmail.com 9

10 Rule 8 Manner of payment. Central Excise Rules (1) The duty on the goods removed from the factory or the warehouse during a month shall be paid by the 6th day of the following month, if the duty is paid electronically through internet banking and by the 5th day of the following month, in any other case. Provided that in case of goods removed during the month of March, the duty shall be paid by the 31st day of March: Provided further that where an assessee is eligible to avail of the exemption under a notification based on the value of clearances(ssi) in a financial year, the duty on goods cleared during a quarter of the financial year shall be paid by the 6th day of the month following that quarter, if the duty is paid electronically through internet banking and in any other case, by the 5th day of the month following that quarter, except in case of goods removed during the last quarter, starting from the 1st day of January and ending on the 31st day of March, for which the duty shall be paid by the 31st day of March. Explanation-1. - For the removal of doubts, it is hereby clarified that, (a)an assessee, engaged in the manufacture or production of articles of jewellery, other than articles of silver jewellery but inclusive of articles of silver jewellery studded with diamond, ruby, emerald or sapphire, falling under chapter heading 7113 of the First Schedule of the Tariff Act shall be eligible, if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year, computed in the manner specified in the said notification, did not exceed rupees twelve crore;...1/4/2016 (b)an assessee, other than (a) above, shall be eligible, if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year, computed in the manner specified in the said notification, did not exceed rupees four hundred lakhs.. Pr ca.vv@gmail.com 10

11 Central Excise Rules SECTION 69 OF THE FINANCE ACT, REGISTRATION - COMMON REGISTRATION AND RETURN FOR FIRST STAGE DEALER AND IMPORTER CIRCULAR NO.1032/20/2016-CX, DATED Attention is invited to Notifications No. 30/2016-C.E.(N.T.), dated 28th June, 2016 by which it has been provided that an assessee who is registered as a First Stage Dealer shall be exempted from taking registration as an importer and vice-versa. 2.1 An assessee who conducts business both as an importer and a First Stage Dealer may take only one registration as he has been exempted from the requirement of taking a second registration. It may be noted that the facility is optional and any assessee needing separate registration for his own business purposes, may so register. 2.2 Such assessee who conducts business both as a First Stage Dealer and an Importer, henceforth shall also have the option of filing a single quarterly return giving details of transactions as a first stage dealer and an importer, one after the other in the same table of the return, viz., all transactions as first stage dealer during the return period shall be followed by all transactions as an importer during the same return period. SECTION 69 OF THE FINANCE ACT, REGISTRATION - COMMON REGISTRATION AND RETURN FOR FIRST STAGE DEALER AND IMPORTER NOTIFICATION NO.30/2016-C.E. (N.T.), DATED In pursuance of sub-rule (2) of rule 9 of the Central Excise Rules, 2002, the Central Board of Excise and Customs hereby specifies that (i)a person who is registered as a first stage dealer shall not be required to take registration as an importer; or Pr (ii)a person who is registered as an importer shall not be required to take registration as a first stage dealer. ca.vv@gmail.com 11

12 REDUCTION OF GOVERNMENT LITIGATION - WITHDRAWAL OF APPEALS BY THE DEPARTMENT BEFORE CESTAT/HC INSTRUCTION NO. [F.NO. 390/MISC./163/2010-JC], DATED I am directed to invite your kind attention towards Board's instructions dated & regarding the withdrawal of cases and Member (L & J)'s D.O. letter dated & U.O. Note dated informing that in all such identified cases, applications for withdrawal should invariably be filed by As already informed, all the cases identified for withdrawal were to be withdrawn by 15th July, 2016 as per the time-line given by the Revenue Secretary. However, after reviewing the reports of the zones, it is noticed that such cases in respect of most of the zones have still not been withdrawn by the various High Courts and Tribunals. In this regard, I am directed to inform you that the latest position in respect of the number of cases withdrawn for your zone is required for forthcoming Revenue Secretary's meeting with the entire Board by 5th September positively. In case of non-withdrawal of the cases, detailed reasons may kindly be furnished by the respective zones. Pr ca.vv@gmail.com 12

13 CLARIFICATIONS ON SCOPE OF WORD 'SITE' APPEARING IN NOTIFICATION NO.12/ 2012-C.E., DATED CIRCULAR NO.1036/23/2016-CX, DATED The issue has been examined in the Board. The expression site has been defined in the notification (ibid) as "any premises made available for the manufacture of goods by way of a specific mention in the contract or agreement for such construction work, provided that the goods manufactured at such premises are solely used in the said construction work only". 2.2 It is clear from the definition that the expression "site" cannot be given a restrictive meaning while interpreting the same so long as the premises under consideration for availing benefit of exemption under S.No. 186 of Notification No. 12/2012-Central Excise, dated fulfils following conditions: i.the said premises are made available to the manufacturer of goods by way of a specific mention in the contract/agreement for such construction work. iithe goods under Chapter 68 (except 6804, 6805, 6811, 6812 and 6813), for which exemption is claimed are manufactured at the said premises; and iii.such goods manufactured at the said premises are exclusively used for the construction work, as per the relevant contract or agreement. 3. It appears that in some field formations, the distance at which goods manufactured at site is used in the project, has been considered as criteria for examining the eligibility of goods for exemption. This is an extraneous criteria not flowing from the language used in the notification, particularly when the expression "site" stands explained in the notification. As explained in para 2.2 above, the eligibility criteria must flow from the plain reading of the explanation of the expression "site" in the notification. 4. In view of the above, it is hereby directed that each case may be decided taking into consideration the facts of the individual case, examined in light of the clarification given above. Circular No. 456/22/99-CX, dated is hereby rescinded. Pr 5. Field formations and trade may be suitably informed. Difficulty experienced, if any, in implementing the circular should be brought to the notice of the Board. ca.vv@gmail.com 13

14 Definition of manufacturer or producer amended [Rule 2(naa)] The definition of manufacturer or producer under clause (naa) of rule 2 has been amended vide Notification No. 36/2016 CE (NT) dated As per the amended definition, manufacturer or producer (i) in relation to articles of jewellery or parts of articles of jewellery or both, falling under heading 7113 of the First Schedule to the Excise Tariff Act, includes a person who is liable to pay duty of excise leviable on such goods under sub-rule (1) of rule 9 of the Articles of Jewellery (Collection of Duty) Rules, 2016; (ia) in relation to articles of precious metals falling under heading 7114 of the First Schedule to the Excise Tariff Act, includes a person who is liable to pay duty of excise leviable on such goods under sub-rule (1) of rule 12AA of the Central Excise Rules, 2002; (ii) in relation to goods falling under Chapters 61, 62 or 63 of the First Schedule to the Excise Tariff Act, includes a person who is liable to pay duty of excise leviable on such goods under sub-rule (1A) of rule 4 of the Central Excise Rules, [Effective from ] Jewellery manufacturer with turnover upto 15 crore in preceding year eligible to avail 100% CENVAT credit on capital goods in the year of purchase [Rule 4(2)(a)] As per explanation to rule 4(2)(a) read with third proviso to the said rule, an assesse, whose aggregate value of clearances of all excisable goods for home consumption in the preceding financial year does not exceed 4 crore (computed in accordance with SSI notification), can take 100% CENVAT credit on capital goods in the financial year when the same are received by him. With effect from , explanation to rule 4(2)(a) had been amended to provide that a manufacturer of articles of jewellery [excluding silver jewellery, other than studded with diamonds/ ruby/ emerald/ sapphire] will be allowed to take 100% CENVAT credit on capital goods in the year of purchase, if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year, did not exceed 12 crore However, the eligibility limit for threshold exemption for jewellery manufacturers has been raised from 12 crore to 15 crore [Refer amendment no. (1) in Chapter 13: Exemption Based on Value of Clearances given in this Statutory Update]. Consequently, with effect from , the said explanation has been amended again vide Notification No. 36/2016 CE (NT) dated to provide that a manufacturer of articles of jewellery or parts of articles of jewellery or both, falling under heading 7113 of the First Schedule of the Central Excise Tariff Act, will be allowed to take 100% CENVAT credit on capital goods in the year of purchase, if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year, did not exceed 15 crore. [Effective from ] Pr ca.vv@gmail.com 14

15 Clearance of segregated foreign material from honey grade brass scrap before feeding the same in the furnace cannot be treated as clearance of inputs as such [Rule 3(5)] Rule 3(5) of CCR lays down that where when inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the providerof output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods. In case of manufacture of brass products, foreign materials (impurities like iron, steel, rubber, plastic, dust etc.) are segregated from imported honey grade brass scrap before feeding brass scrap in the furnace. An issue arose that if the brass manufacturers clear such segregated foreign material, can it be treated as clearance of inputs as such and accordingly are the manufacturers required to pay an amount equal to the credit availed in respect of such inputs in terms of rule 3(5) of CCR. Circular No. 1029/17/2016 CX dated has clarified that segregation from honey grade brass scrap in order to weed out other foreign materials before the process of melting in the furnace is an essential process relating to manufacture of brass articles. The foreign materials, emerging during the process of segregation have to be treated as process waste and cannot be treated like removal of inputs as such. The segregated foreign material has an altogether different character and use vis-a-vis brass scrap. Value per unit and classification of the segregated foreign material is also different from that of imported brass scrap. Accordingly, clearance of segregated foreign material such as iron, steel, rubber, plastic, dust etc. from honey grade brass scrap before feeding the same in the furnace cannot be treated as clearance of inputs as such as envisaged under rule 3(5) of CCR. The segregated foreign material in such situation, as has been explained above, shall be cleared on payment of central excise duty on transaction value as per its appropriate classification and rate of duty determined on merits. Pr 15

16 Manufacturers of readymade garments and made up articles of textiles sold under a brand name with RSP of 1000 or more exempt from physical verification of premises during registration - Notification No. 35/2001 CE (NT) dated Notification No. 35/2001 CE (NT) dated , which lays down the conditions and procedures for registration, provides that on receipt of an online application for registration, the authorized officer will verify the premises physically within seven days of such receipt. Notification No. 32/2016 CE (NT) dated has amended Notification No. 35/2001 CE (NT) dated to exempt every manufacturing factory or premises engaged in the manufacture or production of goods falling under Chapters 61, 62 or 63 (except laminated jute bags falling under headings or tariff item 6305, or 6310) of the First Schedule to the Central Excise Tariff Act, 1985 bearing a brand name or sold under a brand name and having a retail sale price (RSP) of 1,000 and above. Accordingly, there will be no post registration physical verification of the premises in case of manufacturers of readymade garments and made up articles of textiles sold under a brand name with RSP of 1000 or more. Jewellery manufacturers (excluding manufacturer of articles of silver jewellery not studded with diamond/ ruby/ emerald/ sapphire) are also exempted from post registration physical verification of the premises [Refer amendment 3(ii) at page no. 261 in Chapter 5: General Procedures Under Central Excise of the Supplementary Study Paper-2016]. [Effective from ] Digitally signed invoices with manual signatures are valid invoices under central excise and service tax Notification No. 18/2015 CE (NT) dated was issued to specify conditions, safeguards and procedures in relation to authentication of invoices by digital signatures. However, many of the customers of a manufacturer or service provider, who receive goods and services under cover of an invoice authenticated by a digital signature, do not have the requisite information technology infrastructure to accept or receive such invoices electronically. In such situations, they demand manually authenticated invoices from manufacturers or service providers who otherwise issue digitally signed invoices. Pr CBEC has clarified vide Circular No. 1038/26/2016 CX dated that a manufacturer or a service provider who opts to issue invoices authenticated by digital signature may print a copy of such invoice and sign them manually and forward the same to such customers who are unable to accept or receive the digitally signed invoices. Such invoices in effect would be authenticated by two signatures, digital signature as well as manual signature and would be considered to be in conformity with rule 11 of Central Excise Rules, 2002 or rule 4A, 4B and 4C of the Service Tax Rules, Such invoices would also be a valid document to avail CENVAT credit. ca.vv@gmail.com 16

17 Amendments relating to excise duty on jewellery (i) Jewellery manufacturer exempt from submitting factory plan for the purposes of registration - Notification No. 35/2001 CE (NT) dated Notification No. 35/2001 CE (NT) dated , which lays down the conditions and procedures for registration, provides that the applicant should tender self- attested copies of, inter alia, the plan of the factory premises at the time of verification of the premises. Notification No. 38/2016 CE (NT) dated has amended Notification No. 35/2001 CE (NT) dated to exempt a manufacturer/ principal manufacturer of articles of jewellery or parts of articles of jewellery or both, falling under Chapter heading 7113 of the First Schedule to the Central Excise Tariff Act, 1985 from submitting the plan of the factory premises. [Effective from ] (ii) Jewellery manufacturer having turnover up to 10 crore not required to file the declaration under Notification No. 36/2001 CE (NT) dated Rule 9(2) of the CER empowers the CBEC to notify person or class of persons who may not require registration subject to conditions or limitations as may be specified by it. Accordingly, CBEC has issued Notification No. 36/2001 CE (NT) dated to exempt certain categories of persons/premises from operation of rule 9 i.e., from obtaining excise registration. Notification No. 36/2001 CE (NT) dated exempts the persons who manufacture excisable goods which are chargeable to nil rate of duty or remain fully exempt from the excise duty, from obtaining registration subject to the manufacturer making a declaration in the prescribed form while claiming exemption. However, where the exemption on the said goods is granted, based on the value of clearances made in a financial year ( full exemption limit ), no such declaration shall be filed, if the aggregate value of the said goods cleared was less than the specified limit during the preceding financial year. The specified limit means full exemption limit minus 60 lakh i.e., 90 lakh [ 150 lakh - 60 lakh]. Notification No. 40/2016 CE (NT) dated has amended Notification No. 36/2001 CE (NT) dated to provide that the specified limit in respect of goods falling under heading 7113 of the First Schedule to the Central Excise Tariff Act, 1985 means full exemption limit i.e., 10 crore. Therefore, in effect no declaration needs to be filed by such jewellery manufacturers. [Effective from ] Pr ca.vv@gmail.com 17

18 (iii) Jewellery manufacturer exempted from filing of Annual Return - Notification No. 17/2006 CE (NT) dated Rule 12(2)(a) of CER requires every assessee to submit an Annual Return for the preceding financial year to which the return relates by 30th day of November of the succeeding year. The Central Government, however, can notify assessee or class of assessees who may not be required to submit such an Annual Return. Accordingly, Notification No. 17/2006 CE (NT) dated exempts the following from filing of Annual Return: (i)assesses who pay less than 100 lakhs as excise duty during the financial year to which the Annual Return relates; (ii) Indian Ordnance Factories, Department of Defence Production and Ministry of Defence. The said notification has been amended vide Notification No. 39/2016 CE (NT) dated to also exempt manufacturer/ principal manufacturer of articles of jewellery or parts of articles of jewellery or both, falling under heading 7113 of the First Schedule to the Central Excise Tariff Act, 1985, from filing of Annual Return. [Effective from ] (iv) Manufacturers of parts of articles of jewellery availing exemption under Notification No. 12/2012 CE dated permitted to file quarterly returns Assessees availing exemption, inter alia, in respect of goods falling under specified serial nos. of Notification No. 12/2012 CE dated [Sl. No. 67, 128, 199(I) and 200(I)] are permitted to file a quarterly return within 10 days after the close of the quarter to which the return relates [Fourth proviso to rule 12(1) of the CER]. Notification No. 35/2016 CE (NT) dated has amended the said proviso so as to also permit an assessee availing exemption in respect of parts of articles of jewellery [falling under Sl. No. 199(II) of Notification No. 12/2012] to file a quarterly return. [Effective from ] (v) Applicability of rule 12AA of CER restricted to only articles of precious metals falling under heading 7114 of the Central Excise Tariff Hitherto, rule 12AA of the CER prescribed the provisions relating to job work in case= of articles of jewellery or other articles of precious metals. The rule casted the liability of payment of duty on the principal manufacturer when articles of jewellery or other articles of precious metals falling under heading 7113 or 7114 as the case may be of the First Schedule to the Central Excise Tariff Act, 1985 were produced or manufactured on his behalf by a job worker. In view of specific provisions being introduced for collection of excise duty on articles of jewellery or parts of articles of jewellery or both falling under heading 7113 of the Central Excise Tariff Act from , rule 12AA has been amended by Notification No. 35/2016 CE (NT) dated to restrict its applicability to only articles of precious metals falling under heading 7114 of the Tariff. Accordingly, the definition of job worker provided in the Explanation 1 to said rule has also been amended. [Effective from ] Pr ca.vv@gmail.com 18

19 (vi) In view of specific provisions being introduced for collection of excise duty on articles of jewellery from , amendment made in explanation 1 to rule 8 of Central Excise Rules, 2002 vide Notification No. 8/2016 CE (NT) dated to provide for quarterly payment of duty for jewellery manufacturers has been reversed vide Notification No. 35/2016 CE (NT) dated [Refer amendment 1(ii) at page no. 258 in Chapter 5: General Procedures Under Central Excise of the Supplementary Study Paper 2016]. [Effective from ] Threshold exemption (SSI exemption) raised from 6 crore to 10 crore for jewellery manufacturers with simultaneous increase in eligibility limit from 12 crore to 15 crore With effect from , SSI exemption for articles of jewellery [excluding silver jewellery not studded with diamonds/ruby/emerald/sapphire had been fixed at 6 crore in a year with an eligibility limit of 12 crore in the preceding year. The SSI exemption for the month of March, 2016 for jewellery manufacturers was fixed at 50 lakh, subject to the condition that value of clearances for home consumption by a manufacturer from one or more factory/premises of production or manufacture, or from a factory/premises of production or manufacture by one or more manufacturers during the financial year should not be more than 12 crore. With effect from , SSI exemption for articles of jewellery or parts of articles of jewellery or both [excluding silver jewellery not studded with diamonds/ ruby/ emerald/ sapphire] has been fixed at 10 crore in a year with an eligibility limit of 15 crore in the preceding year. The SSI exemption for the month of March, 2016 for such jewellery manufacturers has been fixed at 85 lakh, subject to the condition that value of clearances for home consumption by a manufacturer from one or more factory/premises of production or manufacture, or from a factory/premises of production or manufacture by one or more manufacturers during the financial year should not be more than 15 crore. Notification No. 8/2003 CE dated has been amended vide Notification No. 28/2016 CE dated to carry out the above amendment. [Effective from ] Pr ca.vv@gmail.com 19

20 Following are the details of Small Petrol, LPG & CNG cars sold by Tata Motors in the month of April 2016 Category SP per unit No. of Units sold Total Sales Small Petrol cars 3,00,000 1,200 36,00,00,000 Small LPG Cars 3,50, ,50,00,000 Small CNG Cars 4,00, ,00,00,000 Total -- 2,700 92,50,00,000 As per CETA ED payable is 12 % on all the Cars. SP given above is exclusive of ED. All Duties/ Taxes applicable are charged separately. Following is the details of date of manufacture of the above sold cars. Category No. of Units sold Manufactured before 28/02/2016 Manufactured after 1/03/2016 Small Petrol cars 1, Small LPG Cars Small CNG Cars Total 2,700 1,400 1,300 Ca.vv@gmail.com 20