June 23, 2002	Sunday	Rabi-us-Sani 11, 1423

ISLAMABAD, June 22: The government has made amendments in the Central Excise Rules 1944 aimed at harmonising central excise procedures with those of sales tax as announced in the budget.

According to Central Board of Revenue (CBR) notifications, the pitch of penalty given in section 9 of the central excise act, 1944 and rule 210 of the central excise rules, 1944 has been amended to harmonize it with sales tax.

The adjudication powers given in section 33 of the Central Excise Act 1944 have been harmonized with those given in the sales tax act 1990 so that a case involving both CED and sales tax was adjusted by one adjudicating officer.

The government has done away with the requirement of renewed central excise licenses for the manufacturers of commodities or provider of services on which CED has been totally withdrawn and providers of services shifted to GST mode.

However, licenses would be required for the manufacturers of goods or provider of service on which CED was leviable but would not be required to get them renewed.

They would, however, got the licences amended if there was any substantial change in the plant or machinery or premises or any other vital particular of the licence. They would not have to pay any fee for amendment.

The government has dispensed with maintaining of separate raw materials accounts and submitting quarterly return as the manufacturer maintains the same for sales tax purpose.

The format of clearance documents— AR-1, AR-2, AR-3— have been merged into one “AR”. Moreover, the particulars of Gate Pass have been incorporated in the revised format of “AR” and the requirement of issuing a separate Gate Pass has been dispensed with.

The formats of monthly returns namely RT-1 and RT-2 have been substantially simplified to facilitate the taxpayers.

The rule 10 of the Central Excise Rules, 1944 has been amended to bring the time limit for recovery of duty in line with that given in the Sales Tax Act 1990.

The government amended the rule 210 to provide that machinery used for the manufacture of counterfeit goods will also be liable to seizure and confiscation.

The items manufacturers whereof cannot maintain duty paid godown within one kilometre of the factory under rule 52 of the Central Excise Rules, 1944 include beverages.

This item has been amended as “aerated beverages” to exempt the manufacturers of non-aerated beverages from this condition. It may, however, be mentioned that the requirement of maintaining record under rule 53C will continue to be applicable on non- aerated beverages also.

The Central Excise Rules, 1944 have been amended to provide that any manufacturer desirous of maintaining computerised record can do so with the prior permission of the Collector concerned.

A Central Excise General Order was being issued to lay down a uniform procedure for recovery of CED on post mix machines.

NOTIFICATIONS ABOLISHED: The government has done away with 10 notifications and rules of sales tax and central excise duty in the budget 2002-03.

The notifications rescinded included — SRO7(I)/83 dated 5th January, 1983; SRO995(I)/92, dated 8th October, 1992; SRO22(I)/98, dated 1st June, 1998; and SRO267(I)/2002, dated 15th May, 2002.

The rules abolished in the budget included — refund of input tax rules 1991; refund of sales tax rules 1992; and retailers’ enlistment tax rules 2000.

Similarly, the following notifications of central excise were rescinded in the budget: SRO454(I)/96 dated the 13th June 1996; SRO455(I)/96, dated the 13th June, 1996; and SRO456(I)/96, dated the 13th June, 1996.