Chapter

1.1 The expressions ‘assessment’ and ‘assessee’ have been defined in the Central Excise (No.2) Rules, 2001 (hereinafter referred to as the said Rules). "Assessment" includes self-assessment of duty made by the assessee and provisional assessment under rule 7 of the said Rules. "Assessee" means any person who is liable for payment of duty assessed or a producer or manufacturer of excisable goods or a registered person of a private warehouse in which excisable goods are stored and includes an authorized agent of such person.

1.2 Normally, duty is payable on removal of goods. Rule 4 of the said Rules provides that every person who produces or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty leviable on such goods in the manner provided in rule 8 of the said Rules or under any other law. No excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided.

1.3 An exception has been provided in the said rule 4 in respect of goods falling under Chapter 62 of the First Schedule to Central Excise Tariff Act, 1985 (5 of 1986) produced or manufactured by a job worker. Such goods may be removed without payment of duty leviable thereon and the duty of excise leviable on such goods shall be paid by person who gets such goods, produced or manufactured on his account on job work as if such goods have been produced or manufactured by him, on the date of removal of such goods from his premises registered under rule 9. The payment of such duty may be secured by bond or otherwise. However, where such person has authorised the job worker to pay the duty leviable on such goods, the job worker shall pay such duty on the date of removal of such goods from his registered premises.

1.4 There is also an exception with respect to duty payment on molasses. Where molasses are produced in a khandsari sugar factory, the person who procures such molasses, whether directly from such factory or otherwise, for use in the manufacture of any commodity, whether or not excisable, shall pay the duty leviable on such molasses, in the same manner as if such molasses have been produced by the procurer.

1.5 For the purposes of the said rule 4, excisable goods manufactured in a factory and utilised, as such or after subjecting to any process, for the manufacture of any other commodity, in such factory shall be deemed to have been removed from such factory immediately before such utilisation.

2.1 Before each removal, whether outside the factory of manufacture or production or for captive consumption, duty has to be assessed on the excisable goods. The main ingredients of assessment are:

Second quarter – July, August, September	October
Third quarter –October, November, December	January
Fourth quarter – January, February, March	April

4.1 Date for determination of rate of duty and tariff value is prescribed in rule 5 of the Central Excise (No.2) Rules, 2001. The provision is, as follows:

4.2 If any excisable goods are used within the factory, ‘the date of removal of such goods’ shall mean the date on which the goods are issued for such use.

4.3 The rate of duty in the case of goods falling under Chapter 62 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured on job work, shall be the rate in force on the date of removal of such goods by the person referred to in sub-rule (3) of rule 4 from his premises registered under rule 9.

(1)	The rate of duty or tariff value applicable to any excisable goods, other than khandsari molasses, shall be the rate or value in force on the date when such goods are removed from a factory or a warehouse, as the case may be.
(2)	The rate of duty in the case of khandsari molasses, shall be the rate in force on the date of receipt of such molasses in the factory of the procurer of such molasses.