SUMMARY OF EXCISE ACT,2058

&
EXCISE RULES, 2059
INCOME YEAR
2076-77

PRESENTED BY :
CA. PRABIN RAJ KAFLE
FCA, M Com

FOR:
INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPAL (ICAN)
SATDOBATO, LALITPUR

CA. PRABIN RAJ KAFLE

 TO LEVY EXCISE DUTY (SECITON 3)

As per law, Excise duty shall be levied on the goods or services as mentioned in the
schedule at the rate mentioned against the goods or services in the same schedule.

The schedule forming part of the Act states the name of the goods and services on
which excise duty shall be charged, the harmonized code of the goods, unit of the
goods and the rate of the excise duty.

Duties, either specific or ad valorem are yearly applied based on Yearly Finance
Act/Ordinances. These rates are not reproduced here. Please update the rates from
particular Finance Act of relevant year.

CA. PRABIN RAJ KAFLE

 IMPOSITION OF EXCISE DUTY (SECTION 3)

On Domestic Production of Goods

The production unit is taxable while issuing the goods

On Import of Goods
Excise items are linked with customs classification of goods and commodities (called
HS codes) as in the US, EU or in Japan as motivated by IMF to its members. The
advantages are the comparability of trade statistics, the use of a uniform "language"
in international trade based on a systematic classification that avoids linguistic
differences and predictability of the cross-border traders within exporting state.

On services
Excise duty shall be charged on the services covered by the schedule forming part of
Excise Duty Act, 2058. Excise duty shall be collected when the service is provided, it
means when the invoice for the service is issued as per Sec. 7.

CA. PRABIN RAJ KAFLE

 THE NEED TO TAKE LICENSE (Section 8 & 9)

No one shall manufacture, import, sell or store any excisable goods or provide excisable
service, without obtaining a license as prescribed in this Act or rules.

No excise duty license is required on import of goods subject to excise duty under the
diplomatic facility on the recommendation of the Nepal Government, Ministry of
Foreign Affairs and to sell or store a product subject to excise duty by an industry under
shelf removal system.

The term of the license issued shall remain valid until one Fiscal Year.

The person shall renew the excise license within Shrawan after the expiry of a fiscal year
after paying the prescribed fees. Such renewal may be done for three fiscal year at once.

A licensee of Bidi, tobacco (surti) panmasala, Gutkha, Khadsary industry or importer of

khudo or Gud importer shall renew his/her license by depositing renewal fees as
prescribed.

The renewal requirement is waived for license holder involved in industries that
produces goods under self removal system and provides service attracting excise duty.

CA. PRABIN RAJ KAFLE

 THE NEED TO TAKE LICENSE (Section 8 & 9)
In case any licensee fails to have its license renewed within the prescribed period, it
may have its license renewed for one fiscal year on payment of an addition fee as
follows: Other than licensed importer and manufacturer
Condition Additional Fee
If the renewal is requested within first 3 25% of the fee mentioned in Annexure 2 shall
months of the expiry of the period be charged extra
If the renewal is requested within next 3 50% of the fee mentioned in annexure 2 shall
months of the expiry of the first 3 months be charged extra
If the renewal is requested within next 3 75% of the fee mentioned in annexure 2 shall
months of the expiry of the first and be charged extra
second 3 months
If the renewal is requested within next 3 100% of the fee mentioned in annexure 2 shall
months of the expiry of the first, second be charged extra.
and third 3 months

Licensed importer and manufacturer

Condition Additional Fee
If the renewal is requested within 50% of the fee mentioned in Annexure 2
first 3 months of the expiry of the shall be charged extra
period
If the renewal is requested within 100% of the fee mentioned in annexure 2
next 3 months of the expiry of the shall be charged extra
first 3 months
 TIME OF LEVYING EXCISE DUTY (Section 4)

The following is the time determined by the Act to levy excise duty:

In case of Issue of Goods under Physical Control System

In this case, excise duty shall be levied at the time of issuance after production from
the enterprises for the purpose of sales.
In case of liquor, spirit, khudo (molasses) and beer the Excise Duty shall be levied at
the time of release of goods after production following Physical Control System.
(Rule 6(1)

NOTE:
"Physical control system" means the system of production, release, import and
export of a product subject to excise duty under the control of the Excise Duty
Officer or employee designated by him or her.

CA. PRABIN RAJ KAFLE

 TIME OF LEVYING EXCISE DUTY (Section 4)
In case of Issue of Goods & Services under Self-Removal System
In this case, excise duty shall be levied at the time of issuance of invoice.
In case of excisable goods mentioned other than in sub-rule (1), the goods shall be -
released following Self- Removal System. (Rule 6(2)

TUTORIAL NOTE:
Notwithstanding anything contained in Rule 6(1) or Rule 6(2), while releasing
Cigarette, tobacco, Khaini, Gutkha, Panmasala-with or without having nicotine, and
other similar tobacco related products, the amount of excise duty shall have to be
deposited and the requisition form shall have to be approved for release of goods.

NOTE:
"Self-release system" means the system of production, release, import and export of a
product subject to excise duty other than that based on the physical control system.

In case of Import of Goods

In this case, the custom office shall levy excise duty at the custom entry point at the
time of import.

In case of Import of Services

The time to levy excise duty shall be as prescribed by IRD.
CA. PRABIN RAJ KAFLE
 SET OFF OF EXCISE DUTY/ EXCISE DUTY CREDITS
Under the following conditions as per Sec. 3Ka, excise duty paid on purchases or
import of the excisable goods shall be allowed for setoff from the excise duty
collected on sales:
 The excise duty paid on the raw materials used in the making of a product
subject to excise duty may be deducted from the excise duty to be paid at the
removal of finished product.
 The excise duty paid by any industry other than industry producing tobacco
mixed products subject to the self-release system on the purchase or import of
raw materials may be deducted from the excise duty payable while selling the
finished product.
 In case of excise paid on stock which is lost due to fire, theft, accident, arson or
expiry of useful term may be deducted as specified by the Department according
to Sec. 3 Ka (4).
 Excise duty paid at the time of purchase or import of raw material used for
production by industry producing and exporting excisable goods shall be
allowed to be set off with excise duty to be paid at the time of removal of
finished product as per Section 3Ka(3).
 No set off of Excise Duty paid at the time of import of subsidiary raw material,
packing material, custom duty exempt raw material and spare parts is
permissible.

CA. PRABIN RAJ KAFLE

 NOT TO LEVY EXCISE DUTY (Section 3Kha)

 If any goods or services are exported from Nepal or

 Any goods other than liquors and cigarette are sold to a licensed bonded
warehouse and duty free shop, on such goods or services.

 Cigarette, liquors or any other goods sold by the licensed bonded warehouse to
any person or entity enjoying diplomatic and tariff privilege, as recommended by
the Government of Nepal, Ministry of Foreign Affairs. But the duty free shop or
the bonded warehouse when purchasing the goods have to pay cash deposit or
provide a bank guarantee for an amount equal to the excise duty chargeable on the
goods. The release of the cash deposit or bank guarantee shall be as prescribed by
IRD.

CA. PRABIN RAJ KAFLE

 CASE STUDY:

Royal Stag Distillery has been manufacturing 65 UP Alcohol using Molasses as

prime raw material. The input output ratio is 20 litre per quintal of molasses.
During the month Bhadra 2076, it has purchased 200 quintal Molasses on which
the excise duty is Rs. 50 per quintal. The excise duty payable on 65 UP Alcohol is
Rs. 90 per liter. It is assumed that all the production has been sold, out of which
70% is sold to a duty-free shop under recommendation from Inland Revenue
Office. Calculate the net Excise Duty payable for the month?

CA. PRABIN RAJ KAFLE

 CASE STUDY:

Casterly Rock Pvt. Ltd. is a Television Assembling Unit in Nepal which imports
Television Receivers under HS Code: 8529.90.10 which is the major raw materials for
Television Manufacturing. Excise Duty on the same is levied @ 10% at the time of
imports as well as is charged @ 10% at the time of Sales of Final Product. Whereas on
the other hand Custom Duty for the same is NIL i.e. no duty is imposed on import of
items falling under HS Code: 8529.90.10. During 2076/77 Casterly Rock imported
around 10,000 Units of Television Receivers @ of Yuan 750 CIF Birgunj Custom Point
each (1 Yuan = 15 NPR). Further assembled the same and sold around 7,500 Units of
Television @ NPR.15,000 each. With Due respect to the provision of Excise & Custom
Act suggest about the following:
What will be the cost per unit of Television Assembling Unit so imported?
Will Casterly Rock be allowed to Claim Credit of the Excise Paid on Import of Raw
Material? If Yes, Why?

CA. PRABIN RAJ KAFLE

 RE IMPORTATION OF EXPORTED GOODS (Section 3Kha)

If any goods manufactured or prepared within Nepal and already exported from
Nepal are re-imported because of rejection by the concerned party or other reason,
and the same goods are to be exported within Three months of the import, the
goods may be released against the deposit of the excise duty leviable at the time of
such return, and the deposit shall be refunded by the concerned Customs Office
after the re-export of such goods.

CA. PRABIN RAJ KAFLE

 REFUND OF EXCISE DUTY (Section 3Kha)

 Unadjusted Excise Duty if any after set off can be filed for
refund with Excise Officer.
 If Excise Officer finds its reasonable after investigation and
examination then refund claimed shall be refunded within
60 days from the date of an application.
 There must be the value addition of at least 15% on
removal of Tobacco, Liquors and Panmasala products for
claiming refund of Excise Duty.
 If claim for refund is not made within 1 year from the due
date of filing return and if there is no value addition as
mentioned above then no refund shall be allowed.

CA. PRABIN RAJ KAFLE

 SUMMARY OF EXCISE ACT,2058
&
EXCISE RULES, 2059
INCOME YEAR
2076-77

PRESENTED BY :
CA. PRABIN RAJ KAFLE
FCA, M Com

FOR:
INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPAL (ICAN)
SATDOBATO, LALITPUR

CA. PRABIN RAJ KAFLE

 PERSON LIABLE TO PAY EXCISE DUTY (Section 4Ka)

Conditions Person liable to pay

Domestic production of goods The producer
or services
Import of goods Name of the person mentioned on the
bill of lading, or airway bill or person
mentioned in the application filed for
clearance.
Auction of excisable goods The person who accepts the auction
When the goods sold to duty- The owner of the goods who re-sales or
free shop comes for resale in person who reuses it.
the market or used for other
purposes
When the non-excisable goods The owner of the goods when it converts
convert to excisable goods to excisable goods.
In other cases As prescribed by IRD

CA. PRABIN RAJ KAFLE

 CASE STUDY:

Mr. Ram is a Business Man Established its business in Kathmandu last year.
During this year Mr. Ram has converted its business goods from non-excisable
goods to excisable goods. On dated Ashad end 2076, Mr. Kamal Excise officer
visited the business house of Mr. Ram found that non-excisable goods are
converted to excisable goods in business without paying any excise duty as
required by the Excise Act 2058. But Mr. Ram is arguing that he has converted the
non-excisable goods to excisable goods so no need to pay excise duty as demand
by Excise officer. State the consequence in the action taken by Excise officer.

CA. PRABIN RAJ KAFLE

 TIME LIMIT TO PAY EXCISE DUTY (Section 4Kha)

Conditions Time Limit

Goods subject to the
physical control system
Goods or services to be
produced and sold
distributed under the self
removal system
Goods to be imported
Services to be imported
At the time of discharge of such
goods
Within the 25th day of the month
following the issue of invoice
Note:
It failure to pay on due date: there
shall be charged a delay fee by 0.05
percent on the due and payable
amount per day
At the time of entering of such
goods into Nepal
As prescribed by the Department

CA. PRABIN RAJ KAFLE

 CASE STUDY:

A manufacturing company producing excisable goods and have obtained approval

for self-removal system. As per the financial statements for the year 2076/77 of the
company, there is excise payable of Rs. 2,500,000 of which Rs. 100,000 is related to
sales of Baishakh, 2077, Rs. 50,000 is related to the sales of Jestha, 2077 and the
balance amount is related to the sales of Ashadh, 2077. The company has not paid
the excise amount till 15th Bhadra, 2077. In this case, briefly mention the excise
duty payment in case of self removable system and calculate fee if applicable till
15th Bhadra, 2077. (No. of Days: Baishakh 2077: 31, Jestha 2077: 31, Ashadh 2077:
32, Shrawan 2077: 31, Bhadra 2077: 31)

CA. PRABIN RAJ KAFLE

 CASE STUDY:

A manufacturing company producing excisable goods and have obtained

approval for self removable system. As per the financial statements for the
year 2076/77 of the company, there is excise payable of Rs. 1, 50,000.00 on
which Rs. 50,000.00 is related to the sales of Jestha, 2077 and the balance
amount related to the Ashad, 2077. The company has not paid the excise
amount till 15 Bhadra, 2077. In this case, briefly mention the excise duty
payment in case of self removable system and calculate fee if applicable till
Bhadra 15, 2077.

CA. PRABIN RAJ KAFLE

 EXEMPTION FROM EXCISE DUTY (Section 4Ga)

 Import of goods by diplomats or persons availing such privilege under the

recommendation of Ministry of Foreign Affairs.

 In Transfer of Vehicles or cancellation of Registration of Vehicles

 In the following cases, the excise duty is exempted while transferring vehicle:

 Transfer to project by changing in government name plate according to the

approved annual plan of the project, such vehicles not exceeding ten years
from the year of original manufacturing that were imported after availing
diplomatic facility or duty privilege by any foreign institution or donating
agencies

 Transfer to government entity, local bodies, community schools, or

community hospitals after obtaining permission of Ministry of Finance
after the completion of any project, such vehicles not exceeding ten years
that were imported availing custom exemption or concession in tariff rate
(except on deposit or bank guarantee) by such projects.

 Transfer to spouse of the owner after his/her death, such vehicles imported
by individual for personal purpose availing partial duty exemption
CA. PRABIN RAJ KAFLE
 EXEMPTION FROM EXCISE DUTY (Section 4Ga)

 While cancellation of registration of vehicle by scrapping it after the

approval of Ministry of Finance, such vehicles imported by Diplomatic
mission, project, person or any other government or non-government
institutions with the enjoyment of the tariff facility and that is more than
Fifteen years old after the year of initial production.

 Armed personal carrier, motor vehicle, arms and other related goods
carried by Army, Nepal police, Sashastra Police for restoration of peace on
request of United Nation Organisation.

 Industry producing goods using 90% or more local scrap materials.

CA. PRABIN RAJ KAFLE

 CASE STUDY:

 At what conditions excise duty is exempt ?

 Is there any provision under which an industry shall enjoy excise exemption
under Excise Act, 2058 although its products are excisable?

CA. PRABIN RAJ KAFLE

 PROVISION RELATED TO GIFT AND CASH REBATE (Section 4Nga)

The liquor, Beer or tobacco related industry or its importers and their sellers
shall not operate any type of gift programme or such industry shall not
provide any rebate to any other distributor except to the distributor registered
in the Value Added Tax while selling such products. If such act is carried it
shall deem a breach of the condition of the license.

CA. PRABIN RAJ KAFLE

 CASE STUDY:

After the success of Visit Nepal Year 1998 and Nepal Tourism Year 2011, the Tourism
Board of Nepal introduced Visit Nepal Campaign 2020. The Campaign was announced
in 2015 to be held in 2018 but was later postponed to 2020. The mainstream media
publicized Nepal as utterly devastated by the earthquake in 2015 and failed to show that
Kathmandu with other major cities was almost intact. The earthquake significantly
affected the inflow of tourists in 2016 as the number of tourists halved compared with
the previous year. Currently, the country sees nearly one million tourist visitors yearly
and expect to double this number promoting Visit Nepal Campaign aggressively. M/s
Khagendra Distilleries manufacturer of all kinds of Alcohol products including Beer
Whiskey rum etc. International Brands in Nepal registered with company registered
office of Government of Nepal and Inland Revenue Department.

Chief Operating Officer and Chief Finance Officer (CFO) of M/s Khagendra Distilleries
have planning to introduce the following scheme for targeting and promotion of
Tourist in 2020.

CA. PRABIN RAJ KAFLE

Particular Budget Remarks
Kathmandu –Pokhara (two ways) USD 212 2 Person
Kathmandu-Bhairahawa (two ways) USD 200 2 Person
KTM –Bharatpur(two ways) USD 190 2 Person
Five Star hotel Accommodation in all Per night and the average
places USD 100 stay for 2 night
All Alcohol Beer and whiskey other Free No limits for dinks

COO and CFO have planned some schemes for retailer wholesaler some free
cartons of alcohol to growth sales during the tourist year 2020. CFO has planned to
book the expenses incurred during this scheme under sales promotion expenses
heading. Mr. Chief Executive Officer of the M/s Khagendra distilleries seek your
advice whether COO and CFO proposed scheme is benefited to the company from
a legal perspective.

CA. PRABIN RAJ KAFLE

 CASE STUDY:

Queenfisher Brewery Industries Limited, a multinational company having

manufacturing unit at Bharatpur, Chitwan manufacturing Queenfisher Brand Beer.
The management of the company announced a scheme that the customer will get
sure shot Rs. 10 to 100,000 as printed in the tin cap of the bottle. Accordingly, the
company makes the scheme to the public via Kantipur Daily. On the next day the
department has issued a show case notice to the company citing "why the license is
not cancelled". Is the notice of the Department is correct? Will your answer be
different if the company made the scheme to the public via Hoarding Board at
Tripureshwor instead of Kantipur daily?

CA. PRABIN RAJ KAFLE

 CASE STUDY:

Ministry of Culture, Tourism and Civil Aviation Nepal has planned to celebrate
Tourism Year 2020 with 2 Million target tourist in Nepal to promote tourist in Nepal
and increase the economic activities in Nepal. Mr. President NRN has established
the best beer factories in Nepal since 15 years. The Marketing head and CFO of the
company has planning to introduce some promotional Scheme of beer targeting to
Tourism Year 2020. They plan to give its customers coins of Silver 10 gms , 20 gms
and 50 gms for every one, two and three case of beer purchase. Marketing head and
CFO has proposed this scheme to CEO Mr. Excellent but CEO seeking your advice of
this promotion plan of marketing head and CFO for Tourism Year 2020 for
implement in 2020 of not?

CA. PRABIN RAJ KAFLE

 CASE STUDY:

Dolma Distilleries, manufacturer of Beer and wiskey both brand name is ―Change
& Dance‖, which is facing top competition threat from similar product
manufacturer. The management of the company has decided to provide 10 beer &
wiskey free for 5 cartons of Change & Dance and 2 cartons free for every 10 cartons
of Change & Dance sales. The consumer will get threes free sales promotion from
retailer. The retailer will be reimbursed the same from dealers the company will pay
to the dealers and will book under sales promotion expenses. The company will do
the luck draw schemes with TV, Motorbike, and Car and house facility in yearend
period. The management of the company seeks your advice whether it can go for
the schemes proposed by them?

CA. PRABIN RAJ KAFLE

 SUMMARY OF EXCISE ACT,2058
&
EXCISE RULES, 2059
INCOME YEAR
2076-77

PRESENTED BY :
CA. PRABIN RAJ KAFLE
FCA, M Com

FOR:
INSTITUTE OF CHARTERED ACCOUNTANTS OF NEPAL (ICAN)
SATDOBATO, LALITPUR

CA. PRABIN RAJ KAFLE

 REMISSION OF STOCK SHORTFALL (Rule 23)

The licensee who produces liquors has to submit

in monthly return to Excise Duty Officer for the
remission of stock shortfall in cases where there
has been shortfall in the stock because of
evaporation or obscuration or leakage or bottling
upto 1 per cent.
The Excise Duty Officer shall verify the submitted
return within 30 days.
Upon checking, the Excise Duty Officer may grant
remission of the shortage in case the reason of the
shortage is justifiable and the shortage is upto 1%
after documenting the basis of such decision.
CA. PRABIN RAJ KAFLE
 REMISSION FOR SHORTAGE IN STOCK OF BEER (Rule 23Ka)

The Excise Duty Officer may grant the remission of

the shortage documenting the basis of decision, in
case the reason of the shortage is justifiable and the
shortage is upto 1.5% in case of shortage of stock
shown by bottle counter than that measured by flow
meter and 2% in case of shortage of crown corks due
to damages or breaks at the time of pasteurization,
packaging or shortage.

CA. PRABIN RAJ KAFLE

 CASE STUDY:
Liquor World (Pvt.) Ltd. has the following stocks. Analyze and suggest the company
about the shortages as per Excise Rules, 2059.

Stock as per
Stock as per Physical
Record Verification
Liquor 10,000 litres 9,890 litres
Stock as per flow- Stock as per bottle
Beer bottles while meter counter
bottling 10,000 bottles 9,800 bottles
Beer bottles after Stock as per
pasteurization, physical
packaging and Stock as per record verification
storing 10,000 bottles 9,600 bottles

CA. PRABIN RAJ KAFLE

 PRICE DETERMINATION OF EXCISABLE GOODS AND SERVICES
(SECTION 7)

Summary
Applicability How to determine
On production of The factory price determined by the producer for excisable
goods goods for sales from the factory; or

The price determined by Department on the basis of

production cost of the goods.
On import of Price determined for the purpose of custom duty plus the
excisable goods amount of custom duty charged on the goods.
Value for custom duty xxx
+ custom duty xxx
Value for excise duty xxx

On service The invoice price of the service.

provided

For the purpose of excise duty recovery, the Department can carry out a
reassessment or an additional assessment if deemed necessary.

CA. PRABIN RAJ KAFLE

 POWER TO ADJOURN LICENSE (SECTION 9KA)

 If a licensee gives up doing transaction of goods or services subject to excise

duty, the licensee has to make an application within 15 days, accompanied by
the reason, to the Excise Duty Officer for the adjournment of the license.
 Excise Duty Officer shall make decision to adjourned or not to adjourned the
license of that licensee, and if it appears necessary to adjourned the license,
adjourned it and give information thereof to the licensee within 15 days after
the receipt of the application.
 The licensee who so gets information of the adjournment of the license shall
not be required to furnish details as referred to in Section 10Ka after the next
month of the adjournment.
 The licensee shall not be required to obtain the renewal of license pursuant
during the period of adjournment of license.
 The licensee whose license has been adjourned if wants to commence
transaction of goods or services through such license then application shall be
filed before the excise officer and after receiving such application excise officer
shall give approval of such transactions.

CA. PRABIN RAJ KAFLE

 CASE STUDY:

Mr. Netra is dealing with the excise goods in his home town Kanchanpur, due
to financial crisis Mr Netra has applied for the suspension of Excise license in
accordance with the provision of Excise Act 2058. Excise office has suspense
the excise license for three years as demand by Mr. Netra in accordance with
the section 9ka of Excise Act, 2058, on dated 2073 Magh 27. Mr. Excellent
Excise visited the office of Mr. Netra on dated 23rd Jestha 2076 and fine Mr.
Netra for not renewed as required by the Excise Act 2058. Is the action taken
by Mr. Excellent, Excise office is in accordance with the provision of Excise
Act 2058?

CA. PRABIN RAJ KAFLE

 CASE STUDY:

The ABC Bricks Industries is registered under the Excise Act and incurred
heavy loss since F/Y 2076/077 due to pandemic situation in Nepal. The owner
of ABC Bricks Industries wanted to suspend the license for two years from F/Y
2077/078 to 2078/079. As you are a tax expert, the firm wants your expert
opinion whether the suspension for two years is possible or not? Your views are
to be based on the legal provision of Excise Act, 2058.

CA. PRABIN RAJ KAFLE

 SUSPENSION OF LICENSE (SECTION 9KHA)

License of licensee can suspend up the period of 3 month if Excise Officer found
in its initial investigation regarding evasion of excise duty through
 Non-pasting of excise sticker,
 Using duplicate sticker or
 Reuse of used sticker

On production, removal or selling and distribution of Alcohol, Cigarette or

tobacco product or without disclosing proper record of production or storage of
raw materials required for such products.

CA. PRABIN RAJ KAFLE

 CANCELLATION OF LICENSE (Section 10 & Rule 5Ka)

As per Section 10, The license issued on the basis of Sub-Section (1) of Section 9 can
be cancelled by the Department under the following conditions:-
 If the terms and conditions that have been specified in the permit have been
found to be violated.
 If it is observed to be detrimental to public welfare.
 If Excise duty not paid
 In cases where the licensee organization is dissolved or the licensee makes an
application for the cancellation of license.
 If not renewed as per Section 9
 In case the licensee has stopped the business of dealing in excisable goods or
services or the licensee is deceased, the excise license is to be cancelled.

CA. PRABIN RAJ KAFLE

 TO SELL PRODUCT IN STOCK IN THE EVENT OF CANCELLATION OF
LICENSE (Rule8)

 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.

CA. PRABIN RAJ KAFLE