New Delhi, Dec 19 (UNI) The Government today introduced an optional compounded levy scheme in respect of Pan Masala and Pan Masala containing tobacco, popularly known as Gutkha.
This scheme has been introduced under Rule 15 of the Central Excise Rules, 2002, which provides for payment of duty on the basis of number of packing machines installed in the factory premises of a manufacturer of these goods.
The notification issued by the Central Board of Excise and Customs (CBEC) today has provided for an option for payment of Rs 12 lakh as duty per month per packing machine per line for Gutkha pouches of retail sale price (RSP) upto Rs 1.50.
Similarly, the duty per machine per line per month for Pan Masala pouches carrying RSP upto Rs 1.50 has been fixed at Rs 10 lakh.
Different duty slabs have been provided for pouches priced upto Rs 6.
In case of multiple track or line packing machine, the rate of duty would be multiplied accordingly.
A manufacturer opting for this scheme has to file an application giving details of the packing machine installed in the factory to the jurisdictional Assistant/Deputy Commissioner of Central Excise.
Once this option is exercised by a manufacturer, it will remain effective for the entire financial year. Any addition or removal of packing machines can be made only under the physical supervision of the officer authorised for this purpose.
In case a manufacturer opts for this scheme, there will be normally no inspection or search of his premises in a routine manner.
Detailed instructions have also been issued to the field formations highlighting the salient features of this scheme.
Taking note of the rampant evasion prevalent in this sector, the Chairman, CBEC had recently issued instructions to the field formations for verification of the packing machines present in the factory, the number of such machines working, and for sealing of non-working machines.
This scheme is part of the strategy of the indirect tax administration to encourage voluntary tax compliance, at the same time providing a sharp and uncompromising response to non-compliance, an official release here said.