Responsibility of a Corporate Body for making Declaration and Obtaining Registration Certificate, Exemption from execution of bonds by Central Government.

221. Responsibility of a corporate body for making declaration and obtaining Registration Certificate
221A. Exemption from execution of bonds by Central Government...
222. [Omitted]
223. Stocks of excisable goods to be stored in an orderly manner
223A. Account of stock of goods in a factory or warehouse to be taken and balance to be struck
223B. Omitted
224. Restrictions on removal of goods
224A. Cancellation of Central Excise documents
224B. Duplicates of documents may be granted on payment of fees
224C. Omitted
225. Producer or manufacturer liable for removal of goods by any person
226. Omitted
226A. Electronic maintenance or generation of records, returns and documents using computer
227. Provision and maintenance of weighing and measuring apparatus
228. Provision and maintenance of locks
229. Provision of accommodation at factory or warehouse
230. Goods, plant and machinery chargeable with duty and not paid
231. Matches and excisable tobacco products not to be sold except in prescribed containers bearing a Central
232. Officer shall not disclose information learned in his official capacity.- If any officer except in the discharge in good
232A. Publication of names and other particulars of persons
232B. Qualifications for authorized representatives
232C. Authority under section 35Q(5)(b)
233- Power to issue supplementary instructions
233A. Issue of show cause notice before confiscation of any property or imposition of any penalty
233B. Procedure to be followed in cases where duty is paid under protest

CHAPTER XIV
MISCELLANEOUS

221. Responsibility of a corporate body for making declaration and obtaining Registration Certificate .-

1. Where any trade or business in respect of which declaration is required to be made by these rules is carried on by a corporation, the declaration shall be under the seal of the corporation and signed by the chairman or some director of the corporation or by its secretary or other principal officer.
2. Any person signing a declaration, and also the corporation under whose seal the declaration is made, shall be liable for the payment of all duties charged and to all penalties and confiscations incurred, in respect of the trade or business to which the declaration relates.
3. A declaration in respect of a trade or business carried on by a corporation shall be treated as being under the seal of the corporation if it is signed by some person authorised in that behalf by the corporation under its seal.

221A. Exemption from execution of bonds by Central Government undertakings and furnishing of security or surety by State Government undertakings.- Notwithstanding anything contained elsewhere in these rules, every undertaking owned and managed directly through any Ministry, Department or Directorate by—

1. the Central Government, is exempt from the execution of any bond;
2. a State Government, is exempt from furnishing any security or surety or bond,
   where the execution of such bond, or, as the case may be, furnishing of such security or surety, is required by or under any other provision of these rules.
   Explanation.—For the avoidance of doubts, it is hereby declared that for the purposes of this rule, an undertaking owned or controlled by the Central Government or State Government does not include—
   1. any undertaking belonging to a corporation owned or controlled by the Central Government or a State Government and established by or under a Central, Provincial or State Act; or
   2. any undertaking belonging to a Government company within the meaning of section 617 of the Companies Act, 1956 (1 of 1956).

222. [Omitted]

223. Stocks of excisable goods to be stored in an orderly manner.- All excisable goods stored in the premises of a person registered under these rules or stored in a public warehouse, whether without or after payment of duty, shall be stocked in an orderly manner, so as to facilitate their counting and verification by the Central Excise Officer with reference to Entry Book or warehouse register.

223A. Account of stock of goods in a factory or warehouse to be taken and balance to be struck.- As often as the Commissioner may deem it necessary or proper, the stock of excisable goods remaining in a factory, warehouse or store-room registered or approved for the storage of such goods shall be weighed, measured, counted or otherwise ascertained in the presence of the proper officer; and if the quantity so ascertained is less than the quantity which ought to be found in such premises (after taking into account receipts and deliveries, and making such allowance for waste by evaporation, or other natural causes, as the proper officer may consider reasonable, and as may be in accordance with any instructions issued by the Central Board of Excise and Customs) the owner of such goods, or if the premises be a public warehouse, the keeper thereof, shall, unless the deficiency be accounted for to the satisfaction of the proper officer be liable to pay the full amount of duty chargeable on such goods as are found deficient and also a penalty which may extend to two thousand rupees.
Form:D.D.2

223B. Omitted.

224. Restrictions on removal of goods.-

1. Goods , other than those to which the provisions of Chapter VII-A of these rules apply, may not be delivered from a factory registered under these rules, or from a warehouse, before six o' clock in the forenoon or after six o'clock in the afternoon, nor at any hour on Sundays and public holidays except by permission of the Commissioner, and under such conditions,and on payment of such fees, as the Commissioner may by general or special order require.
2. Notwithstanding anything contained in these rules, no goods shall be removed from a factory or warehouse between appointed time and 12.00 (midnight) on the appointed date unless, -
   1. the assessee has obtained permission of the Commissioner under sub-rule (2A) of this rule.
   2. an application for such removal in the Form A.R.1 specified in Appendix-I to these rules has been presented by the assessee to the proper officer and such an application has been acknowledged by the proper officer before 5.00 P.M. on the working day immediately preceding the appointed date:
      Provided that no such application for the removal of goods which may come into existence at any time after the appointed time shall be acknowledged under this clause unless the terms, conditions and limitations imposed by the Commissioner in this behalf are complied with;
      
      Explanation. - For the purposes of this sub-rule and sub-rule (2A), "goods" include goods which may come into existence at any time after the appointed time.
      
      
   (2A) Where an assessee intends to remove goods from a factory or warehouse under sub-rule (2), he may make an application in this behalf in writing to the Commissioner undertaking to pay duty at the enhanced rate, if any, that may be applicable to such goods with effect from the date immediately following the appointed date and to comply with such conditions as the Commissioner may specify and thereupon the Commissioner may, if he considers it necessary or expedient in the public interest so to do, permit the removal of such goods.
3. No excisable goods shall, in excess of the quota determined in the manner provided for in sub-rule (4), be removed for home consumption from a factory registered under these rules or from a warehouse during any week in such period not exceeding four weeks in a year as the Central Government may, by notification in the Official Gazette, from time to time specify:
   Provided that the Central Government may, if it is satisfied that it is necessary or expedient in public interest so to do, permit, by general or special order, any assessee or class of assessees-to remove, subject to such conditions as it may specify, such goods for home consumption in excess of the said quota from the factory or, as the case may be, from the warehouse.
4. The quota referred to in sub-rule (3) shall, in a case where excisable goods are liable to duty—
   1. at a rate dependent on the value thereof, be one hundred and twenty per cent of the weekly average value of such goods;
   2. with reference to the quantity thereof, be one hundred and twenty per cent of the weekly average quantity of such goods,
      removed for home consumption from the factory or, as the case may be, from the warehouse, during the twelve months immediately preceding the month in which the removal of such goods is subject to the provisions of sub-rule (3); and if, in any case the quota is not determinable in the aforesaid manner, it shall be determined by the Commissioner in such manner as he may deem fit.
5. For the purposes of sub-rules (3) and (4)— (i) the expression "excisable goods" shall include—
   1. goods initially removed from the factory or warehouse for being warehoused or for being exported under bond, but subsequently diverted for home consumption on payment of duty; and
   2. goods manufactured prior to the imposition of duty thereon and removed without payment of duty from the factory during the period of twelve months referred to in sub-rule (4);
      (ii) the expression "twelve months" shall mean—
      1. in the case where a factory starts production or manufacture of excisable goods or a warehouse is established for lodging excisable goods, for the first time during the twelve months preceding the month in which the removal of such goods is subject to the provisions of sub-rule (3), the number of complete weeks commencing from the date of production or from the date of establishment of the warehouse, as the case may be, and ending on the day before the first day of such month;
      2. in a case where a factory is closed on account of any lockout or strike during the period of twelve months referred to in sub-clause (a), fifty-two weeks less the number of completed weeks of such lockout and strikes; and
      3. in any other case, fifty-two weeks.
6. The Central Government may, if it is satisfied that it is necessary or expedient in public interest so to do, relax, by general or special order, the provisions of sub-rules (1), (2) and (2A) and the provisions of clause (iv) of sub-rule (2) of rule 173G, subject to such conditions as it may specify in such order.

224A. Cancellation of Central Excise documents.- Where goods in respect of which an application for clearance or removal has been made under rules 52,158 or 185, are not cleared or removed within ten days of the proper officer's completing,—

1. in the case of clearances for home consumption, the assessment memorandum; and
2. in the case of removal from one warehouse to another or for export, the examination or check-weighment;
   the goods shall be liable to re-examination or re-weighment before the proper officer allows clearance or removal thereof:
   Provided that if the applicant does not require such clearance of removal he shall apply in writing to the proper officer for cancellation of the application therefor and shall, unless the applicant shows to the satisfaction of such officer that the application had to be cancelled due to circumstances beyond his control, pay a fee of rupee one only for every such application, and thereupon the duty, if any, paid by the applicant shall be refunded:
   Provided further that no application for clearance for home consumption presented at any time before the date appointed for the presentation of the annual budget of the Central Government to Parliament shall be cancelled without the prior approval of the Central Board of Excise and Customs , if a request in respect of the cancellation for such application is received after 5.00 P.M. on that date.

224B. Duplicates of documents may be granted on payment of fees.- A duplicate of any certificate, registration certificate , transport permit or other document issued to any person may, at the discretion of the proper officer on payment of a fee of rupees thirty be furnished to such person, if the proper officer is satisfied that no fraud has been committed or is intended by the applicant.

224C. Omitted

225. Producer or manufacturer liable for removal of goods by any person.- If any excisable goods are, in contravention of any condition prescribed in these rules, removed by any person from the place where they are produced, manufactured or warehoused, the producer or manufacturer or the registered person or keeper of the warehouse shall be held responsible for such removal, and shall be liable to be dealt with according to the provisions of the Act or the rules as if he had removed the goods himself.

226. Omitted

226A. Electronic maintenance or generation of records, returns and documents using computer.-

1. Any person may electronically maintain or generate all or many of the records, returns, invoices and other documents prescribed under these rules, using a computer, in electronically readable format:
   Provided that-
   1. printouts of each record and document are taken at the end of each calendar month;
   2. printouts of such records, returns, and documents, and copies of invoices, are kept in bound folder;
   3. each page of the record bears a running serial number and name and address of the person;
2. The Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise may, for reasons to be recordee in writing, prohibit any person from maintaining or generating any records, returns, invoices or other documents in the manner prescribed under sub-rule (1) above.

227. Provision and maintenance of weighing and measuring apparatus.-

1. Every person registered to deal in excisable goods shall render all necessary assistance to officers in taking account of such goods in his possession and shall, where so required by the Commissioner by written order, provide sufficient and just scales and weights, or a correct weighing machine, capable of weighing the largest package of such goods which may be packed on his premises and, where necessary, a set of standard measures, for the purpose of weighing, measuring and taking an account of the goods in his warehouse, stock or possession, and of any vessel used for the purpose of containing any such goods.
2. [Omitted]
3. [Omitted]
4. [Omitted]
5. For any refusal or neglect on the part of a registered dealer to comply with any of the provisions of this rule he shall be liable to a penalty which may extend to one thousand rupees.

228. Provision and maintenance of locks.-

1. Where any warehouse, room, place, vessel, or fitting belonging to any person registered to deal in excisable goods is by these rules, or by any general or special order of the Central Board of Excise and Customs, or of the Commissioner, directed to be secured or locked, the registered person and, in the case of a public warehouse, the warehouse keeper, shall, to the satisfaction of the proper officer, provide, affix, repair and renew all fastenings requisite for the purpose of enabling officers to affix locks thereto or otherwise to secure them.
2. If the registered person or warehouse-keeper fails so to do, the proper officer may provide, affix, repair, or renew the fastenings, and the expense thereof shall be paid on demand by the registered person or warehouse-keeper, as the case may be.
3. All requisite locks or keys shall be provided by the Central Government at the expense of the Revenue.
4. If any registered person or warehouse-keeper fails on demand to pay the expense of providing, affixing, repairing or renewing fastenings, as prescribed in sub-rule (2), or if any registered person or warehouse-keeper or his servant or workman, wilfully destroys or damages any such fastening, or any lock or key belonging thereto, or any lock label, or improperly obtains access into any warehouse, room, place, vessel, or fitting, or has any fastening, vessel or fittings so constructed that the security intended to be obtained by any lock or fastening may be defeated, the registered person or warehouse-keeper shall be liable to a penalty which may extend to two thousand rupees.

229. Provision of accommodation at factory or warehouse.-

1. Every person manufacturing or storing goods on which excise duty is to be levied shall provide and maintain to the satisfaction of the Commissioner, for the use of the officers in attendance at the factory or warehouse, furniture and sufficient and proper accommodation and sanitary accommodation within the factory or warehouse premises; and every manufacturer of excisable goods shall, where so required by the Commissioner, provide suitable lodging conveniently situated to the factory premises at a rent not exceeding ten per cent of the pay of each officer so accommodated:
   Provided that where the limit of rent specified above for such lodging falls short of the rent prevailing in the area the rent payable may be increased by an amount not exceeding Rs. 20 in each case.
2. A breach of this rule shall be punishable with a penalty which may extend to one thousand rupees.

230. Goods, plant and machinery chargeable with duty and not paid.-

1. When the duty leviable on any goods is owing from or by any person carrying on trade or business, whether as a producer, manufacturer or as dealer in such goods, all excisable goods, and all materials and preparations, from which any such goods are made, and all plant, machinery, vessels, utensils, implements and articles for making or manufacturing or producing any such goods, or preparing any materials, or by which the trade or business is carried on, in the custody or possession of the person carrying on such trade or business, or in the custody or possession of any agent or other person in trust for or for the use of the person carrying on such trade or business, may be detained for the purpose of exacting such duty; and any officer duly authorised by general or special order of the Central Board of Excise and Customs or the Commissioner may detain such goods, materials, preparations, plant, machinery, vessels, utensils and articles until such duties or any sums recoverable in lieu thereof are paid or recovered.
2. Where any such person transfers or otherwise disposes of his business in whole or in part, or effects any change in the ownership thereof, in consequence of which he is succeeded in the business or trade or part thereof by any other person or persons, all excisable goods, materials, preparations, plant, machinery, vessels, utensils, implements and articles in the custody or possession of the person or persons succeeding may also be detained for the purpose of exacting duty due from the producer, manufacturer or dealer up to the time of such transfer, disposal or change, whether such duty has been assessed before such transfer, disposal or change, but has remained unpaid, or is assessed thereafter.

231. Matches and excisable tobacco products not to be sold except in prescribed containers bearing a Central Excise Stamp or label.- Save as otherwise provided by these rules, if any matches or excisable tobacco products are found in the possession of any dealer in or retailer of such goods, not being affixed with Central Excise Stamp , wrapped or labelled as hereinbefore prescribed or of which the Central Excise Stamp , wrapper or label is cut or torn, or the wrapper or other container bears any other mark or appearance of having been opened or tampered with, such goods shall be liable to confiscation and such dealer or retailer shall be liable to a penalty which may extend to one thousand rupees.

232. Officer shall not disclose information learned in his official capacity.- If any officer except in the discharge in good faith of his duty as such officer or in pursuance of such special or general directions as may be issued by the Central Board of Excise and Customs, discloses any particulars learned by him in his official capacity in respect of any goods, he shall be liable to a penalty not exceeding one thousand rupees.

232A. Publication of names and other particulars of persons.-

1. Subject to the provisions of sub-rule (5), the Commissioner shall, once in every three months, cause to be published in the Official Gazette the names and addresses and other particulars specified in sub-rule (2), of the following categories of persons, namely:—
   1. persons who have been convicted by a court under section 9 of the Act;
   2. persons who have been found by an officer referred to in section 33 of the Act to have contravened any of the provisions of the Act or rules made thereunder and on whom a penalty of ten thousand rupees or more has been imposed by such officer.
2. The other particulars referred to in sub-rule (1) are:—
   1. the provisions of the Act or rules made thereunder contravened;
   2. the amount of penalty imposed;
   3.  the value of excisable goods or other property ordered to be forfeited by a court under section 10 of the Act or adjudged by the officer referred to in section 33 to be confiscated;
   4. amount of fine in lieu of confiscation, if any, imposed under section 34 of the Act;
   5. particulars of any registration certificate revoked under rule 181.
      Explanation.—In the case of a firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasurers or managers of the company, or the members of the association, as the case may be, may also be published if, in the opinion of the Commissioner, the circumstances of the case justify such publication.
3.  Notwithstanding anything contained in sub-rule (1), the Central Government may, if it is satisfied that it is necessary or expedient so to do, direct the Commissioner to publish the names, addresses and other particulars specified in sub-rule (2) of any other person who has been found guilty of contravention of the Act or of any rule made thereunder.
4. Notwithstanding anything contained in this rule, the Central Government may, if it is satisfied that it is necessary or expedient in the interest of investigations under the Act, security of State or friendly relations with foreign States or otherwise in the interest of general public, so to do, direct the Commissioner that names of any persons may not be published.
5. No publication under sub-rule (1) shall be made in respect of a person until the period for preferring an appeal under section 35 of the Act or to the first Appellate Court has expired without an appeal having been preferred or such appeal having been filed, has been disposed of.

232B. Qualifications for authorized representatives.- For the purposes of clause (c) of sub-section (2) of section 35Q , an authorized representative shall include a person who has acquired any of the following qualifications namely:—

1. a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or
2. a Cost Accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959); or
3.  a Company Secretary within the meaning of the Company Secretaries Act, 1980 (56 of 1980) who has obtained a certificate of practice under section 6 of that Act; or
4. a post-graduate or an Honours degree holder in Commerce or a post-graduate degree or diploma holder in Business Administration from any recognised university; or
5. a person formerly employed in the Department of Customs and Central Excise or Narcotics and has retired or resigned from such employment after having rendered service in any capacity in one or more of the said departments for not less than ten years in the aggregate.

Explanation.—In this rule "recognised University" means any of the Universities specified below, namely:—

1. Indian Universities
   Any Indian University incorporated under any law for the time being in force in India;
2. Rangoon University;
3. English and Welsh Universities
   The Universities of Birmingham, Bristol, Cambridge, Durham, Leeds, Liverpool, London, Manchester, Oxford, Reading, Sheffield and Wales;
4. Scottish Universities
   The Universities of Aberdeen, Edinburgh, Glasgow and St. Andrews;
5. Irish Universities
   The Universities of Dublin (Trinity College), the Queen's University, Belfast and the National University of Dublin;
6. Pakistan Universities
   Any Pakistan University incorporated by any law for the time being in force;
7. Bangladesh Universities
   Any Bangladesh University incorporated by any law for the time being in force.

232C. Authority under section 35Q(5)(b).- The Commissioner of Central Excise having jurisdiction in the proceedings in which a person who is not a legal practitioner is found guilty of misconduct in connection with that proceeding under the Act shall be the authority for the purposes of clause (b) of sub-section (5) of section 35Q.

233- Power to issue supplementary instructions.- The Central Board of Excise and Customs Chief Commissioners and Commissioners, may issue written instructions providing for any supplemental matters arising out of these rules.
 
233A. Issue of show cause notice before confiscation of any property or imposition of any penalty.- No order confiscating any property, or imposing any penalty on any person shall be made under these rules, unless—

1. a written notice stating the grounds on which it is proposed to confiscate such property or to impose such penalty; and
2. a reasonable opportunity of making a representation in writing within such time as may be specified in the notice against the grounds of confiscation or imposition of penalty mentioned therein and of being heard in the matter; are given—
   1. Where the order relates to confiscation of any property, to the person-in-charge of such property and,
      where such person-in-charge is not the owner of such property, also to the owner thereof; or
   2.  where the order relates to the imposition of any penalty, to the person on whom such penalty is to be imposed:
      Provided that the notice referred to in clause (a) and the representation referred to in clause (b) may, at the request of the person or persons concerned, be oral.

233B. Procedure to be followed in cases where duty is paid under protest.- Where an assessee desires to pay duty under protest he shall deliver to the proper officer a letter to this effect and give grounds for payment of the duty under protest.

2. On receipt of the said letter, the proper officer shall give an acknowledgement to it.
3. The acknowledgement so given shall, subject to the provisions of sub-rule (4), be the proof that the assessee has paid the duty under protest from the day on which the letter of protest was delivered to the proper officer.
4. An endorsement "Duty paid under protest" shall be made on all copies of the gate pass, the Application for Removal and Form R.T.12 or Form R.T. 13, as the case may be .
5. In cases where the remedy of an appeal or revision is not available to the assessee against any order or decision which necessitated him to deposit the duty under protest, he may, within three months of the date of delivery of the letter of protest, give a detailed representation to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise.
6. In cases where the remedy of an appeal or revision is available to the assessee against an order or decision which necessitated him to deposit the duty under protest, he may file an appeal or revision within the period specified for filing such appeal or revision, as the case may be.
7. On service of the decision on the representation referred to in sub-rule (5) or of the appeal or revision referred to in sub-rule (6) the assessee shall have no right to deposit the duty under protest:
   Provided that an assessee shall be allowed to deposit the duty under protest during the period available to him for filing an appeal or revision, as the case may be, and during the pendency of such appeal or revision, as the case may be.
8. If any of the provisions of this rule has not been observed, it shall be deemed that the assessee has paid the duty without protest.
   Note:—A letter of protest or a representation under this rule shall not constitute a claim for refund.

234. Cancellation of former rules, orders and notifications.- The following rules, orders and notifications are hereby cancelled, namely:—

1. The Motor Spirit (Duties) Order, 1917.
2. The Kerosene (Duties) Order, 1922.
3. The Silver (Excise Duty) Order, 1930.
4. The Sugar (Excise Duty) Order, 1934.
5.  The Matches (Excise Duty) Order, 1934.
6. The Mechanical Lighters (Excise Duty) Order, 1934.
7. The Steel Ingots (Excise Duty) Order, 1934.
8. The Northern India Motor Spirit (Duties) Order, 1938.
9. The Northern India Kerosene (Duties) Order, 1938.
10. The Northern India Sugar (Excise Duty) Order, 1938.
11. The Northern India Matches (Excise Duty) Order, 1938.
12. The Northern India Mechanical Lighters (Excise Duty) Order, 1938.
13. The Northern India Steel Ingots (Excise Duty) Order, 1938.
14. The Northern India Silver (Excise Duty) Order, 1938.
15. The Bombay Sugar (Excise Duty) Supplementary Order, 1938.
16. The Madras Sugar (Excise Duty) Supplementary Order, 1938.
17. The Northern India Matches (Excise Duty) Supplementary Order, 1938.
18. The Bombay Matches (Excise Duty) Supplementary Order, 1938.
19. The Madras Matches (Excise Duty) Supplementary Order, 1938.
20. The Motor Spirit and Kerosene Export (Nepal) Rules, 1939.
21. The Sugar Export (Afghanistan) Rules, 1939.
22. The Motor Spirit and Kerosene Export (Kashmir) Rules, 1940.
23. The Motor Spirit and Kerosene Export (Afghanistan) Rules, 1940.
24. The Tyres (Excise Duty) Order, 1941.
25. The Sugar Export (Confectionery) Rules, 1941.
26. The Matches Export (Afghanistan) Rules, 1941.
27. The Tyres Export (Afghanistan and Nepal) Rules, 1941.
28. The Sugar Exports (Iran) Rules, 1942.
29. The Tobacco (Excise Duty) Rules, 1943.
30. The Vegetable Product (Excise Duty) Rules, 1943.
31. The notifications of the Government of India in Finance Department (C.R.)
    1. No. 13-Customs dated 12th April, 1930.
    2. No. 5-Exc., dated 3rd May, 1934.
    3. No. 13-Exc., dated 30th June, 1934.
    4. No. 7-Exc., dated 1st March, 1941.
    5. No. 67-Exc., dated27th September, 1941.
    6. No. 32-Exc., dated 18th September, 1943.
    7. No. 33-Exc., dated 18th September, 1943.