Circular No.565/2/2001-CX

dated 12-01-2001

F.No.201/28/2000-CX.6

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

Subject: Central Excise – Notification No.1/2001-Central Excise (N.T.) dated 11^th January, 2001 amending provisions relating to Payment of duty on fortnightly basis - Regarding

        I am directed to enclose copy of Notification No.1/2001-Central Excise (N.T.) dated 11^th January, 2001, whereby clause (e) of sub-rule (1) of rule 49 and clause (e) of sub-rule (1) of rule 173G have been amended. Instances have come to notice where certain Central Excise assessees did not pay substantial dues relating to earlier period even after being debarred for two months and were again eligible for the facility of fortnightly payment.

2. In order to safeguard revenue, amendments have been made in the rules mentioned above so as to provide that in case where a manufacturer forfeits the facility to pay the dues in installments on account of sub-clauses (i) & (ii) of clause (e) of sub-rule (1) of rule 49 or sub-clauses (i) & (ii) of clause (e) of sub-rule (1) of rule 173G, for a period of two months starting from the date of communication of an order passed by the proper officer in this regard, and if he still fails to make full payment of the outstanding amount before the end of this period, such manufacturer shall continue to forfeit the facility to pay the dues in installments till the date all outstanding amounts are paid. For the sake of clarify, it is mentioned that where a manufacturer pays the outstanding amount before the end of the said two months’ period, he can resume to avail the facility immediately after the completion of the two months period.