Every assessee is required to maintain certain
records and submit returns periodically as prescribed in the various
rules. Before these records are brought into use, the assessee is
required to give page numbers to the records and get the same counter
signed from the Sector officer having jurisdiction over the premises.
General records to be maintained by the assessee.
- RG-1 register, i.e. daily stock account of excisable
- Form-IV register of receipt and issue of raw material;
- Personal Ledger Account;
- Invoice book.
Additional record to be maintained by the assessee
- RG-23A Pt.-I entry book of input receipts;
- RG-23A Pt.-II entry book for taking credit of duty paid
- RG-23C Pt.-I entry book of capital goods received;
- RG-23C Pt.-II - entry book for taking credit of duty paid on
- Record of inputs sent for job work outside the factory under
- Record of inputs received in the factory for job work;
- Challan book under Rule 57F(4) for sending inputs or partially
processed inputs for job work;
- Challan book for sending capital goods for tests, repairs etc.
under Rule 57S.
Additional records to be maintained
by the manufacturers of.
- RG-4 cane account;
- RG-6(C) or (G) register of daily manufacture;
- RG-7 - daily drier account;
- RG-8 Sugar store account;
- RG-9 Gunny bag account;
- RG-11 Daily account of sugar received for crushing.
- RG-2 daily account of splints and veneers and
composition of match heads;
- RG-3 register of stock and receipts of Central Excise
RG-12 register of manufacture of excisable tobacco products;
RG-25 production register cum account
current to be maintained by the manufacturers of embroidery
working under special procedure.
- RG-17 daily account of loose tea utilised in the production
of package tea.
Additional records to be maintained by units
working under Chapter X procedure.
- RG-16 register of excisable goods used for special industrial
Additional records to be maintained by independent
- 1. lot register;
- 2. register in respect of deemed credit taken under Rule 57A;
Records to be maintained by registered dealers.
- RG-23D record of receipt of duty paid goods and issue
- Invoice book.
Returns to be filed by the assessee.
- RT-12 monthly return for the assessee working under
Self Removal Procedure or
- RT-3 monthly return for the assessee working under Physical
- In case of units availing small-scale exemption notifications
RT-12 return is to be filed on quarterly basis.
- RT-5 Quarterly return of the principle raw material
consumed and excisable goods manufactured
Industry specific returns.
- RT-6 matches - monthly return of stocks and
receipts of band rolls;
- RT-7(C) or (G) V.P.Sugar monthly manufacturing
- RT-8 - V.P.Sugar monthly manufacturing report;
- RT-9 V.P.Sugar monthly abstract of sugar received
- RT-11 quarterly return of excisable goods received and
used for special industrial purposes under Chapter X procedure;
- RT-13 100% EOUs monthly return of excisable goods
removed from 100% EOUs or unit working under Free Trade Zones
or Export Processing Zones on payment of duty in the domestic
Returns to be submitted by the Registered dealers.
1. photocopy of relevant pages of the RG-23D register for the
month for which return is submitted along with triplicate copies
of invoices issued, photocopies of invoices under which duty paid
goods received and original copies thereof for defacing and eventual
return, are to be submitted.
Submission of revenue particulars of every assessee.
Every assessee shall submit revenue paid report
to the Range Superintendent in the prescribed proforma on 1st
of every month.
Search, Seizure, Arrest, Offence, Penalty, Prosecution
In every statute, to ensure due compliance of law,
preventive and investigative provisions are incorporated. Under
the Central Excise Act, 1944 and the Rules made thereunder for collection
of appropriate amount of excise duty the preventive and investigative
provisions such as search, seizure, summons, arrest are provided
for. Some of these measures are not expressly provided under the
Central Excise Act, 1944 but have been adopted from the Customs
Act, 1962 vide notification no. 68/63-CE dated 4.5.63 as amended
issued under section 12 of the Central Excise Act, 1944.
An officer not below the rank of Inspector of Central Excise, duly
authorised can search at any time, any premises where the officer
authorising search has reason to believe that excisable goods are
manufactured or stored in contravention of the provisions of the
Act or Rules or where he has reason to believe that the evidence
pertaining to manufacturing and removal of such goods is available.
The authorisation for search is called Search Authorisation or Search
Warrant. For a registered premises or for stopping and searching
any conveyance in transit no such warrant is required. The Search
warrant is issued by an officer not below the rank of the Assistant
Commissioner. The search is to be carried out in the presence of
two independent witnesses.
Whenever after the search of the premises or a conveyance, a proper
officer of Central Excise, i.e. an officer not below the rank of
Inspector forms a reasonable belief that the goods liable to confiscation
or the documentary evidence pertaining to evasion of Central Excise
duty is available in the premises or conveyance searched, he can
seize the goods as well as the documents under section 110 of the
Customs Act, 1962 as made applicable to the like matters of Central
Excise. The instrumentality of the seizure is a panchanama drawn
on the spot in the presence of two independent witnesses. After
seizure the proper officer either takes charge of the goods or keeps
the offending goods in the custody of any person for safe keeping
under a superdginama. The law, however, provides for the provisional
release of the goods seized, pending the order of adjudication,
on execution of a bond and deposition of such security as the officer
competent to adjudicate the case may require.
Under section 14 of the Central Excise Act, 1944, Superintendent
or any officer senior to him, can issue summons to any person requiring
him to give evidence or to produce any record etc. The persons so
summoned are bound to attend and give their truthful statement and
produce the summoned records/documents etc. The statement tendered
under section 14 is admissible as evidence in a court of law. The
summons are to be issued in writing and must bear the signature
of the officer issuing it as well as his official seal, if any.
At the stage of investigation under this provision, the person summoned
has no right to have his lawyer present during the questioning by
Any officer not inferior in rank to an inspector is authorised
to arrest any person whom he reasonably believe to be liable to
punishment under the Central Excise Act, 1944. The person is to
be produced before the Magistrate within 24 hrs. of his arrest.
In the absence of any express definition of the term Offence in
the Central Excise law, any violation of the provisions of the law
would be construed as an offence. Whether or not any offence has
been committed by an assessee is to be adjudged through a process
of adjudication in accordance with the principles of natural justice.
The law envisages action both in respect of offending goods and
The Central Excise Act also provides for initiation of prosecution
proceedings in certain cases, depending upon the gravity of the
offence. Prosecutions are launched by the department through complaints
in the competent jurisdictional courts leading to the trial of the
accused person. If found guilty, such persons may be punished with
fine or imprisonment or both.
Fines and penalties.
The Central Excise Act, 1944 and the Central Excise Rules, 1944
provide for following categories of fine or penalties
31. penalties on the persons who are responsible to conduct the
business of the company or firm, which may include their managers,
partners or directors;
32. penalties on persons who abet any of the offences mentioned
in Rules or Section 9 of the Act;
33. penalties on the companies and firms;
34. confiscation of the goods in respect of which the offence
has been committed or the duty has been evaded;
35. confiscation of the land, building, plant, machinery etc.
used in connection with the manufacture, production, storage,
removal or disposal or excisable goods; and
36. penalty on a person for obstruction or giving false or misleading
Besides these fines and penalties, the Act provides
powers under section 9(B) to publish name, place of business of
persons convicted under the Act.
The property of the confiscated goods vests with the Central Govt.
The owner of the goods, however gets an option to redeem the goods
on payment of fine imposed by the competent adjudicating authority.
The evasion of Central Excise duty is considered a very serious
offence and penalty imposable in certain serious cases is equivalent
to the amount of duty evaded. It is, therefore, desirable that the
assessee should ensure proper maintenance of Central Excise records,
payment of proper duty at proper time and due observance of the
provisions of law. The law also contains provisions for charging
of interest where the duty is not timely paid.
Besides the departmental adjudication, prosecution
can also be launched under Central Excise Act, 1944 for offences
described under section 9(1) of the Act. The law also provides for
prosecution against any person, director, manager, secretary or
other officer of a company or partner of the firm or proprietor
of a concern who is responsible for the conduct of the business
of the company/firm/concern and is found guilty of the offences
under the Central Excise law.
The prosecution proceedings are generally initiated in serious cases
having substantial revenue involvement.
If as a result of the trial the charges made in the complaint against
the accused are proved the court may award the following punishments
23. imprisonment up to 7 years depending upon the gravity of
24. imposition of fine as per the provisions;
25. forfeiture of any goods in respect of which the court is satisfied
that an offence has been committed - this may include vehicle
used for carrying such goods, packages used for packing such goods
and implements or machinery used in the manufacture of such goods;
26. publication of name, place of business etc. of persons convicted
under the Act.