Central Excise Circular No. 863/1/2008-CX dated 18th January, 2008
Subject: Amendments carried out in notification Nos. 49 & 50/2003-CE, both dated 10.06.2003 in respect of exemption to units located in Uttarakhand and Himachal Pradesh and amendment carried out in rule 12 of Central Excise Rules, 2002 so as to prescribe for a quarterly return for these units.

Sir/ Madam,

The undersigned is directed to refer to the notification No.1/2008-CE dated the 18th January, 2008 vide which amendments have been carried out in notification Nos. 49 and 50/2003-CE, both dated 10.06.2003. Attention is also invited towards the amendment carried out in rule 12 of Central Excise Rules, 2002 vide notification No.3/2008-CE(N.T.) dated the 18th January, 2008 in this regard.

2. A new para 4 has been inserted in both the notifications to exclude certain peripheral activities from the operation of these notifications. Accordingly, the benefit of the notifications will not be available to goods which have been subjected to only one or more of the following processes such as packing or re-packing of such goods in a unit container or labeling or re-labeling of containers, declaration or alteration of retail sale price, etc. In other words, units carrying out only such processes would not be eligible for exemption benefit and would be required to pay duty as per normal procedure.


3. Further, rule 12 of Central Excise Rules, 2002 has been amended vide notification No.3/2008-CE[NT] dated the 18th January, 2008 and a third proviso has been inserted in sub-rule (1) of rule 12 so as to prescribe for a Quarterly Return [notified as Form-A vide notification No.4/2008-CE (N.T.) dated the 18th January, 2008], to be filed by the units availing exemption under these notifications. Quarter for the purpose of this notification would mean quarter ending June, September, December and March of a financial year. Such units shall file the quarterly return by the 20th of the subsequent month of the quarter to which the return relates. However, for the quarter ending 31st day of December, 2007, the units have been allowed to file the return by the 20th February, 2008.

4. This return has been prescribed in order to collect the basic details regarding the production and removal activities of such units and the transactions undertaken by them with their related units/persons. It may be noted that this return is required to be filed with the office of the Commissioner only. Further, the manufacturers may send the said statement electronically or by post. Necessary arrangements may therefore be made in the concerned Commissionerate to receive the returns.

5. It may further be noted that the above provisions are applicable to all the existing units availing the benefit of these notifications as also to new industrial units that may be set up in future.

6. The field formations and trade and industry may be suitably informed.

7. Hindi version will follow.

F.No.354/122/2002-TRU(Pt-I)

Yours faithfully,
(Limatula Yaden)
Deputy Secretary to the Government of India

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