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Unit 5: Clearances of Excisable Goods

1. For rule 195, the following rule shall be substituted, namely:— Notes
“195. Disposal of refuse of excisable goods.- All refuse of excisable goods obtained under rule
192, which may remain after the completion of the industrial process shall be stored separately
and the manufacturer shall inform the proper officer in writing the quantity of such refuse and
the date on which he proposes to destroy them at least seven days in advance and may destroy
or otherwise dispose of such refuse in the manner and in accordance with the conditions as may
be prescribed by the Commissioner by a general or special order.”
2. For rule 196A, the following rule shall be substituted, namely:—
“196A. Surplus excisable goods.- If any excisable goods obtained under rule 192 become surplus
to the needs of the applicant for any reason, the applicant may, after informing the proper officer
in writing at least 24 hours in advance:

(i) clear the goods on payment of duty, the rate of duty and the tariff valuation, if any, applicable
to such goods being the rate and valuation, if any, in force on the date of actual removal of the
goods from the applicant’s premises; or
(ii) return the goods to the original manufacturer of the goods from whom the applicant had
obtained them under bond and every such returned goods shall be added to the non-duty paid
stock of the original manufacturer and dealt with accordingly. The applicant shall be accountable
for the loss or deficiency, if any, during transport of the goods from the applicant’s premises to
the place of the original manufacturer; or
(iii) clear the goods for export in the manner provided in rule 12 or 13 or 14, as the case may be.”

(2A) For rule 196AA, the following rule shall be substituted, namely:—
“196AA. Transfer of excisable goods.- The applicant may, after informing the proper officer in
writing at least twenty-four hours in advance, despatch the excisable goods obtained under rule
192 to another manufacturer who is eligible to the concession in respect of such goods and to
whom a registration Certificate has been granted under rule 192 for obtaining such goods.”
3. For rule 196B, the following rule shall be substituted, namely:—
“196B. Disposal of defective or damaged excisable goods.- If any excisable goods obtained under
rule 192 are on receipt found to be defective or damaged or unsuitable to the needs of the
applicant for any reason, such goods shall be stored separately and the applicant may,—

(a) after informing the proper officer in writing at least 24 hours in advance,—
(i) return such goods to the original manufacturer of the goods from whom the applicant had
obtained them under bond within such period and subject to such conditions as may be prescribed
by the Commissioner in this behalf, and every such returned goods shall be added to the non-
duty paid stock of the original manufacturer and dealt with accordingly. The applicant shall be
accountable for the loss or deficiency, if any, during transport of the goods from the applicant’s
premises to the place of the original manufacturer; or
(ii) clear such goods on payment of duty, the rate of duty and the tariff valuation if any, applicable
to such goods being the rate and valuation, if any, in force on the date of actual removal of such
goods from the applicant’s premises; or
(b) after informing the proper officer in writing at least seven days in advance the quantity of
such goods and the date on which he proposes to destroy them and after observing such conditions
as may be prescribed by the Commissioner by general or special order, destroy such goods
where the duty payable thereon has been remitted.”

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