Attention is invited to the notification nos.3/2006 C.E dated 01.03.2006 and 26/2001 CE dated 11.05.2001, which provide exemption to handmade unbranded biris (other than paper rolled biris) from the whole of the duty of excise leviable for the first clearances in a financial year upto 20 lakhs. In the Budget, 2007, the said notification has been amended by notification no.3/2007CE dated 01.03.2007, whereby a condition has been inserted in the notifications, providing that any manufacturer wanting to avail this exemption, is required to file a declaration at the beginning of every financial year giving particulars of name, address, details of manufacturing process undertaken by the manufacturer, quantity of biris manufactured in the preceding financial year, name and address of job workers manufacturing Biris on his account, and the number of Biris manufactured by each job worker or himself if any. The format of this declaration has been prescribed in the notification itself. The condition of filing of declaration has been made effective from 01.03.2007. Therefore, for the current financial year also, i.e. 2006-07, a manufacturer of biris availing the benefit of said notification is required to file the declaration giving the required particulars for the financial year 2005-06, and the said declaration is required to be filed by 31st March, 2007.

2. It may however be noted that excise duty will continue to be levied on branded biris as well as unbranded biris, which have not been included in the declaration filed by the manufacturer. It is further clarified that the declaration prescribed in the notification is to be filed only by a manufacturers of biris who finally pack and sell the biris in the market and is liable to pay duty, except for the exemption provided in the notification. Therefore, this declaration is not required to be filed by individuals/household entities, who roll these biris on job work basis or who carry out other activities on job work basis for a principal manufacturer.

3. In this context, it is further directed the departmental officers should neither visit any manufacturer who has filed a declaration for conducting verification nor should summon him. In case, intelligence inputs are received that a manufacturer has filed a false declaration, or has violated any other provision of law, then the jurisdictional Commissioner of Central Excise, with prior intimation to the zonal Chief Commissioner of Central Excise, may authorize a survey or such other action in order to detect any irregularity. The jurisdictional Chief Commissioner and Commissioner should sensitize the staff to avoid any complaints of harassment.

4. Serious view would be taken of any violation of these instructions.

5. Field formations may be informed suitably.

6. Receipt of the Circular may please be acknowledged.

7. Hindi version will follow.

F.No.201/06/2006-CX-6

(Rahul Nangare)
Under Secretary to the Govt. of India