Procedures to remove the excisable goods:
(a) Physical Control Procedure: Each clearance of manufactured goods from the factory is done under the supervision of the Central Excise Officers. Today, only cigarettes are removed under physical control procedure. All other products fall under the self -removal procedure.
(b) Self Removal Procedure
1. The manufacturer may ensure that the goods, which are sought to be removed, have been duly intimated to the Department providing the process flow chart of manufacture as well as list of critical raw materials.
2. He shall ensure that the finished goods are all duly entered in the production register daily. (This was called the RG-I register earlier).
3. The invoice raised should be in line with the purchase order if any, received from the customer. Care is to be exercised in calculations in the invoice.
4. The assessable value (whether cum-duty price or otherwise) is to be arrived at accurately by applying section 4 read with Central Excise Valuation Rules, 2000. If the value is based on MRP or Tariff Value fixed under section 3(2), the same may be applied.
5. The manufacturer shall prepare an invoice in accordance with the provisions of rule 11 and calculate the assessable value and excise duty payable.
6. He shall make the removal entry in production register providing details of value, quantity and duty payable.
7. It is to be ensured that the person/carrier who/which carries the goods is provided with “duplicate for transporter” copy of invoice.
8. He shall ensure that at the end of the month (1st to 30th), he debits the duty payable in the CENVAT Credit A/c and if the balance is not sufficient, pay through the Personal Ledger Account (PLA) by the 5th of the next month. For the month of March, payment will be made by the end of that month itself.
9. The units claiming SSI Exemption are required to pay the quarterly duty by the 5th of the month following that quarter. Here also, for quarter ending in the month of March, payment is to be made by 31st March itself.
10. It is hereby clarified that the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date. The Board has clarified that the liability would be discharged only on the date of realization of the cheque and not earlier as per the CBEC Circular No.28/2002 dated 24.5.2002.