I am directed to say that with a view to have proper accountal of the raw materials used in the manufacture of cigarettes; Trade Notices have been issued by different Collectorates prescribing maintenance of accounts in respect of different raw materials used in the manufacture of cigarettes.

2.    In the above connection, attention is invited to Rule 55 of the Central Excise Rules, 1944 according to which Collector may prescribe a return, in proper form, of the raw materials to be submitted at the end of every manufacturing period or, if the manufacture is continuous, at the end of every quarter stating with respect to the period in question -

(a)    the quantity of principal raw materials as is prescribed by Collector and is used in the manufacture of excisable goods; and

(b)    the quantity of finished goods, of each description, produced.

4.    In order to have uniform practice in providing similar control on raw materials used for manufacturing cigarettes, the Board desires that Collectors may prescribe cigarette tissue paper, filter rods, PCT, CFCS, Shells & Slides as other principal raw materials i.e. in addition to cut tobacco for the manufacture of cigarettes. As regards cut tobacco, your attention is invited to Board's Circular 30/81-CX. 6 (issued from F.No.201/3/77-CX.6 dated 30.7.1987 (issued vide F.No. 211/70.86-CX.6) regarding declaration of input-output ratio by Cigarette Companies and their verification by Central Excise Officer.

5.    Every cigarette manufacturer may be required to maintain the raw material account for the receipt and issue of the prescribed raw materials for the manufacture of excisable goods, and the quantity of excisable goods manufactured out of the same etc. in the format annexed as Annexure-A to this Circular.

6.    In addition to maintaining the raw material accounts, every cigarette manufacturer may also be required to submit a quarterly return in Form R.T.5 in the format annexed as Annexure-B, in respect of the prescribed raw materials used and the excisable goods manufactured therefrom to the jurisdictional Range Superintendent at the end of each quarter, by the 7th of the following month.

7.    The quantity of raw materials found not suitable for manufacture or which gets damaged or is rendered unfit shall be separately accounted for and presented to the Range Office for verification before destruction thereof.

            Description of raw material / components .........................................
 

Date	Opening Balance	Quantity received	Total	Quantity used in the manufacture of		Quantity otherwise disposed of
				Excisable goods	other  goods	Nature of the disposed	Quantity
1	2	3	4	5	6	7	8
Total for the month

 

Quantity wasted of destroyed	Closing balance	Quantity of Excisable goods manufactured	Quantity of other goods manufactured	Remarks	Signature of the assessee or his agent
9	10	11	12	13	14.

NOTE :-    Separate opening should be provided in respect of each raw material / component.

(1)    Separate particulars of each description of materials used & of each description of finished goods produced should be given.

(2)    The reason for wastage and destruction should be entered in the 'Remarks' column.

        I/We declare that I /We have compared to above particulars with the records and books of my/ our factory and that they are, in so far as I/ We can ascertain, accurate & Complete.

Date ..............................