Challan book

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2012 Do we use new Job work challan book for New Financial year??

Or can we continue same job work challan book and serial number in new financial year

RENGARAJ R.K

RENGARAJ R.K (Expert)
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28 June 2012 Better to have new serial in the new accounting year for challan also, which we follow for excise invoice when we start in the new financial year.

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2012 Is challan book different for Goods removal under Rule 4(5) and Goods removal under Rule 4(6)??

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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19 July 2024 Under the Central Excise Rules, Rule 4(5) and Rule 4(6) pertain to different types of removal of goods from a manufacturer's premises. Here’s a brief explanation of each:

1. **Rule 4(5) of Central Excise Rules, 2002**: This rule pertains to removal of excisable goods for export under bond. When goods are removed under Rule 4(5), they are intended for export and are not subject to excise duty, provided certain conditions and documentation requirements are fulfilled.

2. **Rule 4(6) of Central Excise Rules, 2002**: This rule deals with removal of excisable goods for captive consumption. Captive consumption refers to the use of goods within the premises of the manufacturer for further manufacturing or processing. The excise duty on goods removed for captive consumption is payable as if they were removed for sale.

### Challan Book for Goods Removal:

Typically, for each type of removal (whether under Rule 4(5) or Rule 4(6)), a separate challan or document is used to record the details of the goods being removed. Here are some considerations for each type:

- **Rule 4(5) Goods Removal (for Export)**:
- **Bond**: Goods are removed under a bond without payment of duty.
- **Documentation**: A separate challan or document (commonly referred to as an ARE-1 form) is used to record such removals. This form details the quantity, description of goods, value, destination, and other relevant particulars.
- **Procedure**: The procedures for export under bond involve compliance with Customs and Excise formalities to ensure the goods are exported and the bond conditions are met.

- **Rule 4(6) Goods Removal (for Captive Consumption)**:
- **Duty Payment**: Excise duty is payable on goods removed for captive consumption.
- **Documentation**: A different challan or document is used to record removals for captive consumption. This document includes details required for accounting purposes and for compliance with excise laws.
- **Procedure**: Goods removed for captive consumption are used within the premises for further manufacturing or processing and are subject to excise duty.

### Conclusion:

Yes, typically there would be different forms or formats of challans or documents used for recording removals under Rule 4(5) and Rule 4(6) of the Central Excise Rules. Each form serves a specific purpose related to the type of removal and the corresponding regulatory requirements, whether it involves duty-free export under bond (Rule 4(5)) or removal for captive consumption with duty liability (Rule 4(6)). These documents help in maintaining proper records and ensuring compliance with excise regulations.