The Central Board of Excise and Customs (CBEC) recently clarified that round-the-clock presence of Central Excise officers in the cigarette factories is only directory and not mandatory.
The circular was issued in the background of 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.
As per Rule 6 r/w Rule 11, the presence of Central Excise officer is necessary 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.
The circular stated that 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.”
It was therefore, stated 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.”
Read the full text of the Circular below.
