Chapter-3

Chapter-3 Provisions Relating To Collection of Excise Duty
6. Process of levying excise duty at the time of manufacture:

(1) In the case of the products so specified by the Department as being subject to excise duty at the time of manufacture, excise duty shall be levied, collected and recovered by fulfilling the procedures referred to in
Sub-rule (2).
(2) In the case of a product on which excise duty is levied, collected and recovered at the time of manufacture, the Excise Duty Officer may calculate the products to be manufactured by the  manufacturer throughout the fiscal year and the amount of excise duty payable therefor and require the manufacturer to pay such amount in advance as a deposit. In cases where the amount so paid as a deposit becomes less than the amount payable as excise duty, the Excise Duty Officer may require the manufacturer to pay shortfall amount and shall refund the surplus amount.

7. Power to collect and recover due and outstanding excise duty: In cases where it appears that any person has paid less than the amount of excise duty payable by such person for a product or service  subject to excise duty pursuant to the Act and these Rules, the Excise  Duty Officer may recover due and outstanding amount of excise duty
from him.

8. To sell product in stock in the event of cancellation of license: In the case of the products in stock in the warehouse at the time of cancellation of the license pursuant to the Act and these Rules, they may be sold by obtaining permission of the Department and paying the excise duty due and payable. In cases where the due and payable excise
duty is not paid to the Department, the Department may auction off such products and collect the due and payable excise duty from the proceeds of the sale and refund the surplus amount, if any, to the concerned person.