29 February, 2016

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Amendment to Central Excise Rules, 2002 by Budget 2016–Simplified Tabular Analysis

Revision of Excise Returns | Removal of ER-7 Returns | Revision of ER-3 | No Late Filing Penalty of Annual Return | Budget 2016
 
Amendment in Central Excise Rules, 2002 by Notification No. 08/2016 – Central Excise (N.T.) of Union Budget 2016:-

No requirement for filing of ER-7 | Revision of ER-1 possible | No penalty for late filing of Annual Return | Revision of ER-3 possible
S.No Amendment Governing Provisions Applicability Date Remarks
1. Change in calculation of Interest under Rule 7(4) of CER, 2002. Not. No. 08/2016
Central Excise Rules, 2002
1st March, 2016 Eg. For clarity :-
Goods under provisional assessment, cleared in the month of January, 2015, say a provisional duty of Rs 5000 is paid on the 6th February, 2015 [due date under sub-rule (1) of rule 8], a further duty of Rs 9000 is paid on the 15th April, 2015, and on the same day the documents for final assessment are submitted by the assessee. Final assessment order is issued on the 18th June, 2015, assessing the duty payable on goods as Rs 15000, and consequently the assessee pays a duty of Rs 1000 on the 30th June, 2015, then no interest shall be payable on Rs 5000, interest shall be payable on Rs 9000 from the 7th February, 2015, till the 15th April, 2015, and interest shall be payable on Rs 1000 from the 7th February, 2015, till the 30th June, 2015 as due date for payment of duty of Rs 15000 is the 6th February, 2015.
2. Increase in clearance limit of eligibility criteria of Manufacturer of Jewellery to Rs. 12 Crores Change in Explanation-1 to Second Proviso of Rule 8 of CER, 2002 1st April, 2016 Jewellery” means articles of jewellery, other than articles of silver jewellery but inclusive of articles of silver jewellery studded with diamond, ruby, emerald or sapphire, falling under chapter heading 7113 of the First Schedule of the Tariff Act
3. Removal of requirement of Self-Attestation of Duplicate Invoice for Transporter by the Manufacturer Change in Proviso to Rule 8 of Central Excise Rules, 2002 1st April, 2016
4. Submission of “Annual Return” instead of “Annual Financial Information Statement" to the Superintendent Change in Rule 12(2) clause (a) & (b) of CER, 2002 1st April, 2016
5. Additional Requirement of submission of submission of “Annual Return” for 100% Export-Oriented Unit. Addition of Rule 12(2) clause (c) to CER, 2002 1st April, 2016 Sub-Clause (a) & (b) of Rule12(2) shall apply mutatis mutandis to 100% Export Oriented Unit.
6. No requirement of filing ER-7 for declaration of Annual Production Capacity. Omission of Rule 12(2A) of CER, 2002 1st April, 2016
7. No penalty for late filing of Annual Return u/r 12(2). Change in Rule (6) of CER, 2002
8. Revision of Return filed under Rule 12(1) and (2). Addition of sub-rule 8(a) & (b) in CER, 2002 1st April, 2016 For Clarity:-
· ER-1 filed for Oct’15 on 10th Nov’15, can be revised upto 30th Nov’15
· Annual Return filed under Rule 12(2A) for F.Y. 2014-15 on 28th Nov’15 can be revised upto 27th Dec’15 i.e within a period of one month.

9. Revision of Return filed by 100% Export-Oriented Undertaking upto the end of the calendar month in which the original return is filed. Addition of Rule 17(7) in CER, 2002 1st April, 2016
10. Insertion of proviso to Rule 26(1) for conclusion of penalty liability. Addition of Provsio to Rule 26(1)

1st April, 2016 Proviso:-
“Provided that where any proceeding for the person liable to pay duty have been concluded under clause (a) or clause (d) of sub-section (1) of section 11AC of the Act in respect of duty, interest and penalty, all proceedings in respect of penalty against other persons, if any, in the said proceedings shall also be deemed to be concluded.”

 
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About the Author:
 
CA Ankit Gulgulia (Jain)
Author is Practicing Chartered Accountant in New Delhi/NCR and specialising in Indirect Taxes, Corporate Laws and Transfer Pricing. He can be reached at ankitgulgulia@gmail.com or at +91-9811653975
 
Assisted by Mr. Akshay Chopra
 
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