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With effect from 1st day of April, 2000 every manufacturer shall discharge his duty liability in respect of clearances made during the first fortnight of the month, by the 16th day of that month, and in respect of clearances made during the second fortnight of the month, by the last working day of that month:
Provided that a manufacturer availing the exemption under a Notification based on value of clearances in a Financial Year may discharge his duty liability in respect of clearances made during a calendar month, by 15th day of succeeding month.
How to pay duty.
The assessee can pay duty from two accounts. One account is called current account also described as PLA. The other account is called the Modvat account.
Current account or PLA (Personal ledger account)
After registration of a new factory, the assessee should deposit a token amount on TR-6 challan in any of the nominated branches of Punjab National Bank. T.R. abbreviates Treasury Receipt. After depositing the amount the assessee can take credit of that amount in the PLA to be maintained by him. The assessee, thereafter, should apply to the jurisdictional Range Superintendent along with a receipted copy of TR-6 for allotment of PLA number. The PLA number is allotted by the Chief Accounts Officer and it takes normally a week's time for the allotment of the PLA number. The assessee must mention the PLA number on the TR-6. Even during the pendency of allotment of PLA number the assessee can effect clearances. The duty is to be deposited by the assessee by making a debit entry of the amount of duty in PLA account.
PLA is to be maintained in triplicate using indelible pencil and double side carbon. The assessee should periodically make credit in current account by depositing on TR-6 challans. There should always be sufficient balance in the account to cover the duty on the goods intended to be removed. The debit entry towards payment of duty of an amount exceeding the balance available in the current account means removal of goods without payment of proper duty and such acts are liable to penalties under the law.
Procedure of deposit of duty during strikes etc.
The following procedure may be followed for deposit of duty during sudden strikes, riots, imposition of curfew or natural calamities such as floods/cyclones etc.
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The assessee should send the cheque drawn in favour of the Chief Accounts Officer, Central Excise Commissionerate Delhi-I, C.R.Building, I.P.Estate, New Delhi by registered post acknowledgement due or through special messenger along with completed TR-6 challans in quadruplicate, with an undertaking that they have sufficient balance in their bank account and that they will bear the collection charges charged by the bank. A copy of such forwarding letter should also be handed over to the jurisdictional Superintendent.
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On the strength of the cheque so sent, the assessee may take credit in the PLA and clear the goods. The details with regard to the cheque and the particulars of the concerned assessee are intimated by the Chief Accounts Officer to the jurisdictional Superintendent.
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The duplicate and triplicate copies of the receipted challans are returned to the assessee for his reference and record and for preparing necessary monthly statements etc. Bank commission or collection charges, if any, are to be debited in the PLA. In case the cheque is dishonoured, the assesee is liable for penal action. This concession is not available to the assessees who work on overdrafts on their banks and are not able to give the declaration that they have sufficient balance in their account in the bank to meet the amount of the cheque.
Computerisation of records
The Central Excise department has no objection to accepting computerised documents issued by the manufacturers instead of the prescribed forms or records. The new rule 226A permits the above. Records can be kept on any electronic media and the electronic records must be kept even if a hard copy is kept. The print out (hard copy) of records and documents must be taken out at the end of each month and kept in bound folders separately for each type of record, return, document etc. Persons maintaining their accounts on computer must ensure that proper back up record is maintained and preserved for a period of 5 years counted from the first day of the Financial Year following the financial year to which a record etc. pertain. In case the department requires the records they must produce the same before Central Excise, Audit parties of the department or C & AG officers.
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