CBEC Clarification on Posting of Central
Excise Officer in Cigarette Units
[CBEC Circular No. 1055 dated 1st
May 2017]
Sub: Clarification regarding posting of Central Excise
officer in Cigarette units.
Representations have been received from the field formations
and members of the trade and industry regarding practicality of round-the-clock
posting of Central Excise officers in the cigarette manufacturing units. In
terms of para 10 of instructions dated 24.12.2008 issued vide F. No.
224/37/2005-CX.6, read with para 2.2 of Chapter 4 of the CBEC Manual,
mandatory, round-the-clock presence of Central Excise officer in the factory
has been prescribed to ensure that the goods are not removed without his
authorisation and also exercise supervision and control over operations as per
instructions contained in the Commodity Manual for cigarettes. In view of the
limited number of officers posted in the range, problems are being faced to
post officers in the cigarette manufacturing units round-the-clock, resulting in
delays in production/ clearance of goods.
2. The above
issue has been examined. Rule 6 of the Central Excise Rules, 2002 lays down
that in case of cigarettes, the Superintendent or Inspector of Central Excise
shall assess the duty payable before the removal of goods by the assessee. Further, Rule 11 of the Central Excise Rules,
2002 prescribes that in case of cigarettes, each invoice signed by the owner of
the factory or his authorized agent shall also be countersigned by the
Superintendent or Inspector of Central Excise before the cigarettes are removed
from the factory.
3. On
plain reading of the said two rules, it is clear that the presence of Central
Excise officers is required for discharging the twin functions of assessment of
duty to be paid by the assessee and countersigning
the invoices before the goods are removed from the factory. There is no
requirement in law of round-the-clock posting of Central Excise officers in the
cigarette manufacturing units. Some field formations are taking a view that
production in a cigarette factory can take place only in such shifts where the
Central Excise officer is physically present. Such interpretation is not
correct. Further, under the Goods and Services Tax (GST) regime, no such
requirement of round-the-clock posting of officers has so far been envisaged on
tobacco product dealers/manufacturers who would be paying GST and/or
compensation cess.
4. In view of
above, it is clarified that round-the-clock presence of Central Excise officers
in the cigarette factories is not mandatory but directory. Those field
formations which cannot post officers round-the-clock in cigarette factory
shall use the preventive wing within their respective jurisdiction to maintain
discreet preventive vigilance on the cigarette units round-the-clock. The
presence of Superintendent or Inspector of Central Excise in all cases would be
mandatory at the time of clearance of goods from the factory for the purpose of
assessment of duty and countersigning the invoice.
5. Past
circulars/ instructions/ provisions in manual in conflict with the above
instructions shall stand rescinded to the extent of their conflict. Difficulty,
if any, in implementation of the above instructions may please be brought to
the notice of the Board.
F. No. 81/08/2016-CX.3