MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION

New Delhi, the 28th June, 2001

No. 50/2001-CE(NT)

G. S. R. 486 (E).~- j n exercise of powers conferred under Rule 14 of the Central Excise (No.2)

Rules, 2001, the Central Board of Excise and Customs hereby notifies the following procedure for

procurement, accounting and disposal of Central Excise Stamps and matters pertaining to production,

storage, control, removal and payment of duty on matches: -

(1) Procurement of Central Excise Stamps.-(a) All Central Excise Stamps shall be procured fiom a

district Revenue Treasury or Sub-Treasury.

(b)

(i)

A registered person wishing to obtain Central Excise Stamps for ensh shall submit to the

treasury a challan In quinluplicate for the amount to be paid, specifying on the reverse the

number and class of Central Excise Stamps required, together with their price. The

treasury shall accept the amount specified in the challan and shall return the duplicate,

triplicate and quintuplicate copies of the receipted challan to the registered person.

(ii)

The registered person shall present duplicate and quintuplicate copies of the challan to Die

Inspector or Superintendent incharge of the factory who, after satisfying himself about

the correctness of the amount remitted, shall return the quintuplicate copy to the assessee

with a'n endorsement to the District Revenue Treasury-Officer or Sub-Trcnsuiy Officer to

issue the appropriate number of Central Excise Stamps. The registered person shall

present quintuplicate copy with such endorsement to the District Revenue Treasury

Officer or Sub-Treasury Officer, who shall thereafter supply the Central Excise Stamps to

the registered person.

specified in Annexure A with such surety or sufficient security as the Assistant Commissioner or Deputy

Commissioner of Central Excise may require.

(d) When the provisions of sub-paragraph (c) have been complied with, the Assistant Commissioner or

Deputy Commissioner of Central Excise shall, after due inquiry, authorise the issue of Central Excise

Stamps on credit to the registered person and shall communicate the same to the District Revenue Treasury

Officer or Sub-Treasury Officer concerned and to the Superintendent in charge of the factory with full

particulars, of bond executed and the extent of credit granted. The number of Central Excise Stamps to be

supplied at a time shall not exceed the average out-turn of the factory for a number of days, not exceeding

thirty to be fixed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central

Excise:

Provided that the total price of unused Central Excise Stamps in balance with the registered person

and of those indented for shall not exceed the amount of security furnished by the registered person.

(e) A registered person authorised to obtain Central Excise Stamps on credit shall for each supply submit

to the Superintendent in charge of the factory a requisition in quadruplicate in the Form annexed as

Annexure B. If satisfied that the details stated in the requisition are correct the said officer shall retain the

2038 GI/2001—2

THE GAZETTE OF INDIA: EXTRAORDIMARY

[PART II—SEC. 3(i)]

Jplicatc Tor his own record and send Ihe original, duplicate and quadruplicate to the District Revenue

Treasury Officer or Sub- Treasury Officer concerned, who shall retain the original in his office, issue the

number of Central Excise Stamps required, return the duplicate, duly endorsid to the said officer and send

the quadruplicate copy to the Chief Accounts Officer of the Commissionerate.

(2) Central Excise Stamps to be kept in a secure place and periodically Inspected-- The manufacturer

shall keep all his Central Excise Stamps, whether procured for cash or on credit, in a secure place within

the factory premises, and shall keep them open for inspection at any time by any officer. The inspector or

Superintendent in charge of the factory may at any time examine the stock of the Central Excise Stamps on

any working day and check the balance with that shown in the register and shall record the result in the

the registered person to pay immediately into the Treasury the full price thereof and to produce the treasury

challan. within a week.

(3) Manufacturer to keep account of Central Excise Stamps purclinscd nnd used.- (a) The

manufacturer shall maintain an account of quantity and value of-

(i)

receipts of Central Excise Stamps purchased for cash and on credit;

(ii)

Central Excise Stamps affixed on boxes or booklets;

(iii)

Central

Excise Stamps damaged and handed

over to the Inspector or

Superintendent in charge of the factory; and

(iv)

Central Excise Stamps lost in the process or not otherwise accounted for.

(b) The manufacturer shall submit to the Superintendent Incharge Of the factory monthly return in the Form

annexed as Annexure C before the tenth day of the month following that to whicfi the return relates.

(4) Time and manner of affixing Central Excise Stamps. - (a ) As soon as possible, after matches are

finished, they shall, unless intended for export, be put into boxes or booklets which shall then, save as

otherwise provided by these procedures, be affixed with Central Excise Stamps and enclosed in packets or

other outer coverings as the case may be,

(b) livery Central Excise Stamp shall be so affixed that -

(i) the box or booklet on which the Central Excise Stamp Is affixed can not be opened

without tearing the Central Excise Stamp;

(ii) when it is affixed to a box, the Central Excise Stamp shall cover one side of the inner tray

and a part of the rear or bottom or front or lop of the outer box, and the Central Excise

Stamp itself shall not be covered by either the factory's label or any advertisement label;

(b) Where the matches are intended for export out of India, the Central Excise Stamps need not be affixed

thereto and, unless they are to be exported without payment of duly in accordance with mlc 19 of the

Central Excise (No.2) Rules, 2001, the duty shall be paid by the assessee before removal of each

consignment by debit to the account current maintained by him.

available or for any other relevant reason it is necessary or expedient so to do, it may by geneial or special

order, allow the duty on matches to be paid, without affixing Central Excise Stamps to such box or booklet

by debit to the account current before the removal of each consignment subject to any condition which may

be imposed in the order,

(5) Method of packing.- (a) No packet or case containing boxes or booklets of matches other than these

.mended for export out of India and those to which the provisions of the paragraph 4(c) nbove apply shall

be dosed and reckoned as a unit unless a Central Excise Stamp of the appropriate class has been affixed to

each box or booklet in the manner laid down in paragraph 4(a) above.

(b) Each case or packet shall contain only an integral number whether one hundred boxes or booklets of

matches or multiples thereof. The boxes or booklets in each case or packet shall contain the same number

of matches on the average and shall, except where the matches are exempted from bearing Ccnlial Excise

Stamps, bear Central Excise Stamps of the same class.

characters, the name of the factory or a distinguishing mark, which may take the form of a special design

whereby the origin of the matches can be traced. Specimens of all such labels shall be submitted to the

Superintendent in-charge of the factory duly declaring the ownership of the label before that are brought

into use. In case, the label is owned by some other manufacturer, a consent letter from the owner of the

label duly declaring the rate of duty applicable to him, should also be filed.

(d) Each case or packet of matches shall be legibly marked in ink or oil colour wilh progressive number,

commencing with number 1, for each year and in different series for each class of matches, the number of

boxes or booklets in hundreds contained in each case or packet and the grade of Central Excise Slnmps

affixed thereto.

(e) Every box or booklet of matches, issued for home consumption, shall have on the box or booklet, or on

the manufacturers label affixed thereto, a statement in clearly discernable character of the sticks

contnincd

in the box or booklet, and of the retail price at which the manufacturer intends that the box or booklet

should be sold:

Provided that the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central

Excise may, by an order in writing and subject to such limitations and conditions, as -wty be prescribed by

him in the order, relax the provisions of this sub-paragraph.

(6) Disposal of matches and or Central Excise Stamps dnmnged during examination or inspection by

Central Excise Officers.- (a) If any Central Excise Stamps are torn during examination or inspection taken

up by the Inspector or Superintendent of Central Excise, the said officer may order t!i t the containers to

which they are affixed shall be returned to the registeied person for re-stamping "ii-¹ shall be replaced

immediately by an equal number of boxes or booklets of the same class from the finished stock.

(b) If examination or inspection by the Inspector or Superintendent'Central Excise shows that Central

Excise Stamps of insufficient value have been affixed, the said officer may order the boxes or booklets in

question to be returned to the factory, where the Central Excise Stamps shall be removed and replaced by

others of the proper value.

(7) Matches intended for export to be marked.- All boxes or booklets containing matches intended for

export and on which no Central Excise Stamps have been affixed, shall be packed into cases or packets on

which shall be pasted labels inscribed " Matches not alfixed with Central Excise Stamps lot E\p<ut" mid

shall be entered in daily slock account maintained under rule 10 ofCcntinl Excise (No.2) ttule-s, 2001

(8) Removal of matches bearing Central Excise Stamps purchased on credit.- When it is desiied to

remove matches bearing Central Excise Stamps purchased on credit, the registered person shall, unless he

maintains an account - current with the Commissioner, pay the price of the Central Excise Stamps and no

such matches may be removed until after the price of the Central Excise Stamps has been so paid or has

been debited to such account-current, if any.

TI IE GAZETTE OF INDIA : EXTRAORDINARY

[PART II—SEC. 3(i)]

Annexure *A

Bond (with surety/security) to be executed by match manufacluier in respect of

Central Excise Stamps obtained on credit

(Delete the letters and words not applicable)

I/we

the owner(s) of the

Match Factory situated

[hereinafter called the obligor(s)

and

(hereinafter

called the surety) am/are jointly and severally bound to the President of

India in the sum of.

rupees to be paid to the President of India for

which payment

I/we jointly and severally bind myself/ourselves and

my/our legal representatives.

Whereas the obligor(s) has/have applied to the Commissioner of

Central Excise

hereinafter called the Commissioner for the supply

on credit of Central excise Stamps to be affixed to boxes and booklets of

matches to be manufactured in the above named factory;

And whereas the Commissioner has agreed that the said obligoi(s)

may obtain from the Government Treasury at

Central Excise Stamps

of such kind as may be required by the said obligor(s), not exceeding in the

value of sum

rupees at any one time and may from time to time

obtain further Central Excise Stamps piovided that the value of the Cenlial

Excise Stamps so supplied from time to time shall not exceed the value of

the Central Excise Stamps on the boxes or booklets of matches which may,

to the satisfaction of the Commissioner, be deposited in the sloie-ioom;

And whereas the obligor(s) agrees and underlake(s) to return the

said Central Excise Stamps if so required and fuilher agree(s) and

undertakes to pay to the Commissioner the value of the Central excise

Stamps not so returned, excepting such Central Excise Stamps in respect of

which under the Central Excise Rules, 2001, the obligor(s) may be entitled

to a refund from the Commissioner;

Whereas the Commissioner has required the obligor(s) to deposit

as guarantee for the amount of this bond the sum of

rupees in cash;

And whereas the obligors has/have furnished such guaiantee by

depositing with the Commissioner the cnsli/securilies as aforementioned;

The condition of this bond is that if the obligalm(s) shall observe nil the

provisions of the Ccnlial Excise Act, 1944 and the Rules made thereunder

and all such amendments thereto as may be issued from time to time so far

as they relate to Central Excise Stamps obtained on credit.

And if the obligor(s) shall utilise the Central Excise Stamps

obtained on credit only for the purpose of affixing the same to boxes or

booklets of matches manufactured in the said factory;

And if the obligor(s) shall return the unused Central Bxcisc Slumps

to the Commissioner if so required;

And if the obligor(s) shall pay into Ihc treasury approved by the

Commissioner within ten days of such demand being made the full piice of

the Central Excise* Stamps not so returned, less the price of such Central

excise Stamps in respect of which , under the Central Excise Rules, 2001,

the obligors are entitled to a refund from the Commissioner;

This obligation shall be void.

Otherwise and on breach or failure in the performance of any part

of this condition, the same shall be in full force.

I/We declare that this bond is given under the orders of the Central

government for the performance of an act in which the public aie

interested.

Place:

Date:

Signaltirc(s) of obligoi(s)

Witnesses(l)

Addrcss(l)

Occupation(l)

(2)

Addrcss(2)

Occupalion(2)

Signatuie(s) of suiety(ies)

Witnesses(l)

Address(l)

Occupalion(l)

(2)

Addrcss(2)

Occupalion(2)

Accepted by me this

clay of

200

[

of Centi ;il I'-xciscI

[for mid on behalf of Hie President of lncli;i|

Range

Ciicle

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—SEC. 3(01

Annexure "B"

Requisition for supply of Central Excise Stamps on credit

of Central Excises

Sir,

I/We have in our possession this day the under mentioned quantity of Ccuttnl Excise

Stamps:

Denomination

Quantity

Gross

Single

Total

Rs,

Value

Please ask the Treasury Officer at

to supply me/us with Cential Excise Stamps oflhc

following denomination on credit for use at my/our factory:-

Denomination

Number of gross

required

Total

Value

Rs.

[V\

Place

Jiate

Signature of registered person.

Memorandum No.

Forwarded to the Treasury Officer,

The quantities of Central Excise Stamps indented for are covered by a security/surety

bond executed &j # - registered person(s) and may be issued on credit.

Place

c ^.

Signature.

of Cenltill Excise

Meinoranduin No.

Returned to the

of Central Excises aflcr supply of [Central Excise StampsJ to (he

assessee

Signature of Trcasuiy UMiccr

D a t e

O. ipinnl

Duplicate

Triplicate

Quadruplicate

Annexure " C "

Monthly Return of Stocks and Receipts of Central Excise Stamps

obtained on credit/Cash

Name of factory

Address

Month

Superintendent of Central Excises.

Range

Address

Division

I. Unused

Opening balance

Rs.

Received from the Treasury .

Total

Affixed to boxes and booklets and stored in store-room

Damaged and handed over to the proper officer.

Lost in process or otherwise not accounted for .

Closing balance

Total

II Affixed to boxes or booklets

Opening balance

Brought into store-room.

Total

— - —

T H E G A Z E T T E O F I N D I A : E X T R A O R D I N A R Y

[ P A R T I I — S E C 3(i)l

C l e a r e d f r o m f a c t o r y

•

Closing balance

______

Total

111 Central Excise Stamps Purchased For Cash

Opening balance .

•

Received from the Treasury .

__..

Total

Affixed to boxes or booklets

Damaged and handed over to the proper officer.

Lost in process or otherwise not accounted for.

Closing balance

_ _ _

Total

I declare that to the best of my knowledge and belief Ihe inloiinalion furnished

herein is true and complete.

Place:

Date:

Signature of

assesse«. .

[Note:- For Central Excise Stamps purchased on cash, only Fart 111 should he Tilled]

2. This notification will come into force on 1^S( July, 2001.

[F.No. 261/36/1/2001-CX. 8]

P. K.SINHA, Under Secy.

Printed by the Mnnagcr. (iuvl of Imlm I'ress. Ring Road. Maynpiui New Ddhi-I I00o4

and Published by the Controller of I'uhliculions. l)ellii-l 10054,