R.1 Short title, extent and commencement.--

       (1) These rules may be called the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001.
       (2) They extend to the whole of India.
       (3) They shall come into force on and from the 1st day of July, 2001.

R.2 Application.--

These rules shall apply to a manufacturer who intends to avail of the benefit of a notification issued under sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the Act) granting exemption of duty to excisable goods (hereinafter referred to as subject goods) when used for the purpose specified in that notification.

R.3 Application by the manufacturer to obtain the benefit.--

       (1) A manufacturer who intends to receive subject goods for specified use at concessional rate of duty, shall make an application in quadruplicate in the Form at Annexure-I to the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be (hereinafter referred to as the said Assistant Commissioner or Deputy Commissioner).
       (2) The manufacturer shall make separate application in respect of each supplier of subject goods.
       (3) The manufacturer shall execute a general bond with surety or security.
       (4) The bond shall be for such amount as considered appropriate by the said Assistant Commissioner or Deputy Commissioner, to cover the recovery of duty liability estimated to be involved at any given point of time.
    &

R.4 Procedure to be followed by the manufacturer of subject goods.--

       (1) On the basis of the application referred to in sub-rule (7) of rule 3, the manufacturer of subject goods shall avail the benefit of the exemption notification.
       (2) The manufacturer of the subject goods shall record on the application the removal details, such as No. and date of invoice, description, quantity and value of subject goods and amount of excise duty paid at concessional rate.

R.5 Manufacturer to give information regarding receipt of the subject goods and maintain records.--

The manufacturer, receiving subject goods, shall maintain a simple account indicating the quantity and value of subject goods, the quantity of subject goods consumed for the intended purpose, and the quantify remaining in sk, invoice wise and shall submit a monthly return in Return at Annexure-II to the said Assistant Commissioner or Deputy Commissioner by the tenth day of the following month.

R.6 Recovery of duty in certain cases.--

       3[The said Assistant Commissioner or Deputy Commissioner shall ensure that the goods received are used by the manufacturer for the intended purpose and where the subject goods are not used] by the manufacturer for the intended purpose, the manufacturer shall be liable to pay the amount equal to the difference between the duty leviable on such goods but for the exemption and that already paid, if any, at the time of removal from the factory of the manufacturer of the subject goods, along with interest and the provisions of section 11A and section 11AB of the Central Excise Act, 1944 (1 of 1944) shall apply mutatis mutandis for effecting such recoveries.
       1[Provided that if the subject goods on receipt are found to be defective or damaged or unsuitable or surplus to the needs of the manufacturer, he may return the subject goods to the original manufacturer of the goods from whom he ha

ANNEXURE.1 ANNEXURE-I

       ANNEXURE-I
       Application under Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001
       [Original with 3 copies to be submitted through the Range Superintendent]
       To,
       The Assistant Commissioner or Deputy Commissioner of Central Excise,
       Division.............
       Vide S. No. ........... of Notification No. .......... Central Excise, dated the.........issued under Section 5A(1) of the Central Excise Act, 1.944 read with the relevant provisions of the Central Excise Act, 1944 (1 of 1944) and the Central Excise Tariff Act, 1985 ( 5 of 1986) and other laws for the time being in force the goods, namely .......... use

ANNEXURE.2 ANNEXURE-II

       Annexure II
       Monthly Return (See rule 5)
       Name of subject goods
       S.No. Description of subject goods Details Closing balance Goods manufac- tured Specified purpose for procuring the goods at conces- sional rate of duty Whether the goods used for specified purpose or not.
       In case of export, specify the quantity exported with details of ARE 1
       /ARE-2.
        Opening balance Received Total of columns
       (3) & (4) Quantity consumed for the intended purpose Nature Nature
       (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
       Note - Separate