|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
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 assesee, 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 weeks 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
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.
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. 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. 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
If the assessee is availing the benefit of Modvat scheme envisaged
in Central Excise Rules, 1944 from Rule 57A to 57J and Rule 57Q to
57U, he can discharge his duty liability from the credit permissible
in the relevant rules. For operating under the scheme the assessee
is to maintain accounts in the form RG-23A parts-I and II for taking
Modvat credit on inputs and RG-23C Parts I & II in respect of
Modvat credit on capital goods. In these accounts the credit of duty
paid on inputs and capital goods received in the factory, is taken
and the credit is used for payment of duty on the goods manufactured
and removed by the assessee.