Chapter-4

Part-III

SPECIAL PROCEDURE FOR REMOVAL OF LIQUID GASES -PASS-OUT SYSTEM
1. Special Procedure

1.1 Removal of liquid gases will be permitted in a tanker lorry from the factory of the manufacturer on provisional determination of central excise duty liability and provisional entry in Daily Stock Account maintained under rule 10 of the Central Excise (No.2) Rules, 2001 (hereinafter referred to as the said Rules), at the time of clearance from the factory. The invoice under rule 11 of the said Rules will be allowed to be prepared afterwards and the duty will be discharged under the provisions of rule 8 of the said Rules, subject to the observance of the following procedure: -

(a) The assessee shall submit a written request to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the factory alongwith an undertaking that he shall abide by all conditions and restrictions as may be specified, for permitting the Pass-Out System for removal of Liquid Gases.

(b) The liquid gases shall be removed in the tanker lorry under the Pass-out document as per duly filled in proforma at Annexure 9.

(c) The pass-out document shall indicate, inter alia, the description, net quantity of goods being despatched (gross weight minus tare weight of lorry tanker), duty liability on such net quantity.

(d) This net quantity and duty leviable thereon (provisional) shall be provisionally entered/recorded in the Daily Stock Account at the time of clearance from the factory. For the sake of clarity it is mentioned that such “provisional calculation of duty and provisional entry should not be construed as “provisional assessment under rule 7 of the Rules”.

(e) The pass out document shall be made out in triplicate by using double-side carbon paper.

(f) All pass-out documents shall bear printed serial numbers and shall be pre-authenticated by the Inspector of Central Excise having jurisdiction over the factory before they are put to use.

(g) The original and duplicate copy of the aforesaid document will accompany the goods to the destinations. The assessees shall retain the Triplicate copy.

2.1 The quantity delivered to or received by each customer shall be recorded on original and duplicate copies of each pass-out document under the customer’s signature.

2.2 On completion of deliveries, the quantity actually delivered, the quantity actually returned in tanker lorry and the quantum of loss, if any, shall be duly recorded in the Daily Stock Account. The provisional entry relating to quantity of removal and the duty liability shall be converted into final entry in Daily Stock Account immediately after the return of the lorry tanker [after a single trip/transportation] or latest by next morning.

2.3 After return of the tanker lorry, customer-wise Invoice/Application for Removal may be prepared based on the quantity actually delivered. Central Excise duty where payable shall be determined and paid by the assessee in terms of rule 8 on the total quantity of the non-exempted liquid gases delivered to the customer and on the quantity of transit loss and other losses, if any.

2.4 In case both non-exempted and exempted deliveries are effected from the same tanker, the respective invoice/clearance document raised subsequently must indicate the nature of each delivery very distinctly.

2.5 In case of transit and/or other losses the assessee shall be liable to pay central excise duty on the quantity of such losses as determined at the highest effective rate prevailing on the date of removal of the consignment. The assessee shall give a written undertaking in this regard, on each copy of Pass-out document covering the goods.

2.6 All Invoices/clearance document shall be dated as per the date of despatch of the consignment and cross-reference shall be maintained in the pass-out document.

2.7 The original copy of the Pass-out document showing particulars of the quantity despatched, quantity delivered to the individual consignees/customers, Final entry No./date in Daily Stock Account including quantity returned and accounted for therein, shall be handed over to the Sector Officer immediately after the return of the lorry tanker and the final accountal. The consignor factory should obtain an acknowledgement for the submission of the original Pass-out document. The assessee shall retain the duplicate copy of the completed Pass-out document for his record.

2.8 Before filling the lorry tanker for the next supply/clearance, the quantity of the goods already contained therein (left over undelivered goods of the previous supply) should be re-ascertained and any difference between the quantity returned from the previous clearance and the quantity re-ascertained as above shall be treated as storage loss within the factory on which the assessee shall be liable to pay duty. Such differential quantity and the particular duty thereon should be recorded in the appropriate column of Daily Stock Account.

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