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CENTRAL EXCISE DUTY NATURE & MEANING CENTRAL EXCISE DUTY

EXCISE DUTY

Central excise duty is an indirect tax, levied in goods manufactured in India. The tax is administered by the central government under the authority of entry 84 of the union list (list 1) under 7 schedule, read with article 256 of the constitution of India. The word excise is derived from a Dutch term acise , which itself is derived from the Latin word accensay , which means to tax excise is a word of wide import any & according to dictionary meaning, denotes an in direct tax on commodity manufactured ,produced ,sold ,used or transported by the country. Excise duty is a duty levied on the goods that are indigenously manufactured. Excise duties having been defined in this manner in sec. 3 of the that act, it immediately follows from the very defined that for anything to be liable to excise duties, it must fulfill all the following conditions.

(A) It must be goods. (B) It must be excisable goods. (C) It must be either produced or manufactured in India. While the duty no doubt is on goods as such, still goods themselves cannot pay duty. This takes us to the next concept of taxable event. For every tax, whether direct or indirect, there is a taxable event. That is the event or situation which gives rise to the liability which he has created, which would mean that he should be the person to pay the duty. Since the taxable event is production/manufacturer. Excise duty is today the most important source of revenue in India. It constitutes about 1/5 of the total yearly receipts of the central government.

The finance act, 2000 has renamed the duty of excise. The central value added tax (CENVAT), which term is the term duty, duties, excise duty or duties of excise. The Websters New International Dictionary defines excise duty as :(A) Any duty, toll or tax ;

(B) An inland duty or imposed, levied upon the manufacture, sale or consumption of commodities within the country. (C) A tax upon the pursuit or fall of certain sports, trades or occupation, usually taking in this case, the form of exactions for licenses. The supreme court of India has defined Excise duty as a tax on the production or manufacture of excisable goods produced or manufactured within the country Nature of Excise Duty A few special features describing the nature of excise duty are as follows:1. The duty of excise is not levied on directly on the goods but is levied on the manufacture or production of a new commodity. Hence it is called an indirect tax. 2. Excise duty is payable by the manufacturer or the producer, not by the consumer. However the incidence of duty is always indirectly on the consumer. 3. Excise duty is levied on goods &the taxable events is manufacture or production if a new commercial commodity. The levy collection of excise duty is practically made at a stage next to the manufacture of goods, i.e. removal of goods. 4. The taxable event is not independent of liability to pay duty from levy of duty. Therefore there cannot be different taxable events for different purposes. 5. The method of collection does not effect the essence of excise duty, but only relates to the machinery of collection for administration convenience. Excise differentiated from other duties: Excise v/s custom duty :Excise duty is levied on manufacture or production of goods within the country. Thus it is related to industrial activity. Custom duty, on the other hand, is attracted on the movement of goods across the custom frontier. Excise duties are the duties, payable on goods produced at home, where as custom duties on goods imported into country from abroad. Excise v/s sales tax :-

Excise duties are the duties levied upon a manufacture or producer of specified goods, in respect of their manufacture & production in a factory within the country. It is not related to sale of goods or proceeds of such sale. Sale tax , on the contrary is levied on the vendor of goods, in respect of his sale. The taxable event in case of excise duty is the coming into existence of a commodity. However in case of sale tax , the taxable event is the sale of a commodity. The event of a sale of a commodity is immaterial for levy of excise duty. In 1939, the duty of excise included the tax on sales as well. However, when the government of India Act 1985, delegated powers to levy tax on sale to another authority, it was distinguished from excise duty. Excise v/s service tax :Service tax is a tax on the services provided by the specified category of person to their clients & customers. On the contrary, excise duty is a tax on removal of goods from the place of manufacture or production, irrespective Of whether the same are used by customer or not. Excise v/s octroi :Octroi is charged on the entry of goods & a specified area. This is generally levied & collected by the local governments. While excise duty is levied on the goods manufactured &produced &the country. Octri is a kind of entry tax. The levy of excise duty is therefore not conflict with the levy & imposition of octroi. Types of excise duty:Central excise duties can be classified into the following categories:(A) Basic excise duty (BED):- BED is levied under the central excise act 1994, on specified goods manufactured or produced in India at the rates specified in the Central Excise Tariff Act 1985. The basic excise duty may be:(1) Ad Valorem Duty i.e. duty levied at the specified rate on the volume of goods. (2) Specific Duty i.e. duty levied at the specified rate on the

unit, weight, volume, length or area of goods. There is a fixed rate of duty @ 16% is charged. The basic excise duty is shared between the Union & the States. (B) Special duties also known as auxillary duties, are the regulatory duties, which are levied as surcharge on certain specified goods. The purpose of special duties to raise additional resources for some specified objects. Special excise duty is the percentage of effective basic duty is calculated & relief exemptions & rebates is granted. Thus, if the basic excise duty is nil the special excise duty would also be nil. The special duties were first introduced in India in 1963 at the time of Chinese aggression. Special excise duties are generally announced through the Finance Bill. (C) Additional duties:- Additional duty is collected on certain specified goods & products under the provisions of separate status. The additional duty is levied with the object to, either curb the demand or consumption of the particular commodity or to generate revenue sources from the commodity, which can, for the time being, bear the extra load of taxation. These additional duties are in addition to the basic excise duty & special excise duty. (D) National calamity contingent duty [finance act 2001]:- A national contingent duty is imposed by a finance act 2001. This duty shall be in addition to any another duties of excise chargeable on such goods under the Central Excise Act 1944 or any other law for the time being in force. This duty is imposed on Pan masala, Cigarettes, Bidies & other tobacco products.
(E)

Special Additional Excise Duty [finance act 2002]:- In the case of goods specified in the 8th schedule, beings goods manufactured, there shall be levied and collected for purpose of the union by surcharge, a duty of excise to called the special additional excise duty at the rates specified in the said schedule, This duty shall be in additional to any other duty on such goods under central excise duty 1944 or any other law for

the time being in force. The 8th schedule:1. Motor Spirit (Petrol), 2. High Speed Diesel Oil

1:- SPECIFIC DUTY:It is the duty payable on the basis of certain units like weight, length, volume, thickness etc. for example duty on cigrattes is payable on the basis of its length. Duty on sugar is based on per kg. etc. In such cases calculation of duty is payable in comparatively easy. In view of simplicity many goods were earlier covered under specific duty. However this disadvantage is that even if the selling price of product increases and the revenue earned by the government doesnt increase accordingly. Frequent revision of the rates have to be done which is slow and time consuming process hence now most of the goods are covered under Ad-valorem duty. Presently specific rates amended for:1:- Cigrattes on the basis length, match box on the basis of per hundred boxes/ packs. 2:- Marbles slabs and tiles on the basis of square mt.basis 3:- Colour t.v. based on screen size in centimeter. 4:- Sugar per quintal basis. 5:- Cement on ton basis.

2:- AD-VELORAM DUTY:Fixing specific duty or tariff value is possible only for few selected items like sugar pan masala consumer goods etc. Generally it is not practically possible to charge specific duty. Similarly paying duty on the basis of mrp is possible only in respect of few selected commodities. In other case central excise is payable on the basis of value and this is called ad-veloram duty. On a few commodity excise duty is levid on fix price or rate per unit. For eg. Cement is levid @ 350 per ton and on sugar is levid on @ 340 per ton. However on the majority of goods the duty is levid on the ad-

veloram basis. In such case duty is payable should be worked out on percentage basis of the assessable value of the goods clearly. This percentage of duty is specified in the CEPA from 1994-1995. the gatepass system has been replaced by invoice system. The manufacturer under self removal procedure( under chapter vii a rule 173 A to 173 Q) can clear goods by payment of duties, on the value shown in there invoice.there is no need of filing price list ( except whenever the clearance are taking place from as well as depot / consignment agents of factory) The value shown in the invoice should be arrived at after considering the provision of section 4 and section 4a of central excise act 1944 as well as central valuation rule 1975.

3:-COMPOUNDED DUTY:Compounded is the combination of specific and ad-veloram duty.

LEVY OF SLABS
1:- CENTRAL RATE 16 % 2:- MERIT RATE 8 % 3:- DEMERIT RATE 24 % ( With effect from 20th feb 1999 as per the budget of 1999 ) Earlier these were 11 various ad- veloram rates, some commodities were earlier fixed rates at 30 % 32 % 40 % but now maximum excise duty has been lower to maximum of 24% .

LEVIABILITY
The duties of excise which shall be levied and collected on any excisable goods which are produced or manufactured:1:- In a free trade zone and brought to any other place in India 2:- By a hundred per-cent export oriented undertaking and allowed to be sold in India.Shall be an amount equal to the aggregate of the duties of customs which would be leviable ( under the customs act,1962 c52 of 18962) or any other law for the time being in force on like goods produced or manufactured outside India if imported into India and where the said duties of customs are chargeable by reference to their value the value of such excisable goods shall notwithstanding anything contceined in any other provision of this act be determined in accorndance with the provisions of the customs act,1962 (52 of 1962)and the customs tarrif act 1975 (51 of1975).

WHO IS LIABLE TO CHARGE THE DUTY LEVIABILITY:CONSTITUTION IS SUPREME LAW:Legislative powers emanate from the provisions enshrined in the constitution adopted by the respective country.

INDIA IS UNION OF STATES:India being a union of various states has a quasi federal constitution in which the powers of legislation are shared between the union and states. Article 246 and the seventh schedule mentioned therein which lay down the division line, are specifically relevant for this purpose. It shall be seen therefrom that both the union and the state government have powers to legislative in regard to the levy and collection of excise duty.

CONSTITUTION AUTHORITY FOR LEVY OF EXCISE DUTY BY CENTRAL GOVERNMENT:As regard duties of excise, the union government regulates that part of levy which is provided in entry 84 or entry 97residual power of lidt 1 under seveth schedule read with article 246 of the constitution of India and the state government regulates those given in entry 51 list 3. The major part of excise duties are leviable by the union government more popularly known as central excise while the state legislature have a minor share to regulate as described in entry 51. It is understood that industrial alcohol will be subject to union excise as it is not fir for human consumption hence it is the central government not the state government which is competent to levy duty thereon. The union duties of excise are levied on varieties of goods which are classified in the schedule to the central excise tariff act 1985. The central excise tariff contains a detailed classification of excisable goods the rate of duty leviable on each tariff head.

DEFINATION OF EXCISE DUTY:However there is no definition of term excise duty either in constitution or in CEA.

CONSTITUTIONAL AUTHORITY FOR LEVY OF EXCISE DUTY BY STATE GOVERNMENT:As in evident from entry 84 in the union list, in the seventh schedule of the constitution of India, the union government has no power to levy any duty of excise on alcoholic liquor for human consumption, opium, Indian hemp, and other narcotic drugs but including medicinal tolilet preparation containing alcohol or any narcotic substance. Central government has power to levied duty on medicinal toilet preparations containing alcohol narcotic substance etc. eg. Are cough syrup and pain killer tablets or syrups etc. though the duty is levieable by central government would be collected as state excise duty the center cannot collect excise duty on them.

AN OVERVIEW OF CENTRAL EXCISE RULE 1944:As per usual scheme of any act sec 37 of the CEA grants power to govt. to frame rules for prescribing procedures form etc. accordingly central excise rules have been notified by central excise rules have been notified by central govt. ammended from time to time. These rules provided for various procedures t be followed for clearance storage of goods accounting of goods licensing procedures refund procedures, appeal procedures etc. rules are generally important as the prescribed procedure have to be followed by the assessee. In case of central excise, the rules are more important because excise is a very procedure oriented. Many time such substantive benefits are lost or penalties are imposed merely because proper procedure were not followed. Moreover rules often provide for granting concession reliefs hence they must be studied thoroughly. These rules contains the procedure for collection of duty. These rules interalia detail the procedure for appointment and power of officers time manner of payment of duty execution of bonds etc. detailed procedure regarding on levy of duty on un manufactured products manufactured tobacco, tyre, cotton fibers tea vegetables products medicine etc. has been given. They also contain the procedure for availing the benefit of MODVAT.

AN OVERVIEW OF CENTRAL EXCISE & SALT ACT 1944:To improve the body of excise duty, the British Govt. framed the central excise and salt act 1944. there were separate excise act, number 16 all these were consolidated and consolidating act was passed in 1944. In the year 1996 the word salt was omitted from the name of the act, now this act is known as central excise act 1944. This act is applicable till date but with various amendments made in it from time to time. Time is a basic act for excise duty collection, there are 40 sections in this enactment. This act provides for charging of duty, valuation powers of officer provision of arrest and penalty etc Sec 37 of the act empowers the central government to frame rules for this purpose.

AN OVERVIEW OF CENTRAL EXCISE TARIFF ACT 1985:This act provides for tariff for central duty of excise. The central excise rules 1984 and central excise tariff act 1985 form the body of law of central excise. Recommendation made by the study group constitute to review the central excise tariff a new central excise tariff act has come into force with effect from 28 feb 1986. the tariff act replaces 1st schedule of the central excise and tariff 1944, this is very important development in excise taxation. When the central excise act was passed in 1944 the act itself included various items ( called tariff items ) into which goods were classified. However, as more and more goods were covered under central

excise. The tariff began complicated and unsystematic. Hence, CETA 1985 was passed which comes into effect from 1st april 1986. the CETA 1985 classified all goods under 96 chapters and specific court is allotted to each item. There are over 1000 tariff headings and 2000 sub-headings in this act. This classification forms the basis for classifying the goods under particular chapter and sub-head to prescribed duty to be charged on particular product. The excise act and tariff act are thus being separated.

Main features of tariff are as follows;1:-LINKING OF CETA:-CEA and CETA are link together as follows:I:-Section 2 of CETA states that rate at which duties of excise shall be levied under CEA are specified in schedule to CETA. II:-Section 3 (1) of CEA specifies that the duty shall be levied collected on all excisable goods which are produced as manufactured in India, as and at the rates, prescribed in schedule to the CETA thus both acts are link to each other.

2:-CETA IS BASED ON HSN:-CETA is based on harmonize system of


nomenclature called harmonized community description coding system. This is an international nomenclature and standard adopted by the most of the countries to insure uniformity in classification. International trade through CETA generally follows HSN. Often there are wide variations in HSN and CETA.

3:-CETA CONTAINS 2 SCHEDULE:-CETA consist of 2 schedule the


first schedule gives basic excise duties leviable on various products while 2 nd schedule gives list of items on which special excise duty is payable. 2nd schedule contains only few items. It has been cleared that tariff heading given in 2nd schedule will be interpreted in the same way as those in 1st schedule. Items included in 2nd schedule are already covered in 1st schedule.

4:-SECTION AND CHAPTERS OF CEA:-Tariff is divided into 20


sections each of 20 sections is related to broader class of goods. Section notes are given at the beginning of each section which govern entries in that section. These notes are applicable to all chapters in that section. Each of the section is divided into various chapters and each chapters contains goods of one class. Chapter notes are given at the beginning of each chapter.

5:-GROUPS AND SUB GROUPS WITHIN THE CHAPTER:-

Each chapter is further divided into various headings depending on different types of goods belonging to same class of products. The headings are sometimes divided into further sub-headings. All excisable goods are classified using 2 digit system 2 more digits are added for further sub classification.

6:-A SAMPLE CHAPTER FORM CETA:-Extract from CETA of


chapter is given on previous page to given an idea of the tariff. 7:-COLUMNS IN CETA:-Central excise tariff has four columns:I:-HEADING II:-SUB-HEADING III:-DESCRIPTION OF GOODS IV:-RATE OF DUTY

IMPORTANT TERMS AND DEFINATION 1:- ASSESSEE:-Asseesse means any person


I:- who is liable for payment of excise duty assessed under these act or any other act II:- included any procedure or manufactures of excisable goods
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I:- Assembly of CKD ( completely knocked down ) package is not manufacture often goods are dispatched in SKD ( semi knock down )or CKD conditional for conveyance for dispatch. For e.g. cycle manufacture bend cycle in unassembled condition from their factory. In such cases assembly of SKD or CKD packs at site would not amount to manufacture. Case Law:A :- Cycles of India v/s VOI ( 1983 ) B :- Walchand Nagar v/s CCF ( 1995 ) II:- Assembly of plant at site is not manufacture. Assembly of plant at site will not be liable to pay duty if immovable property emerges. After such assembly because excise duty can be only on goods i.e. movable property.

5:- Manufacture even if final product falls under same tariff:-T here
can be manufacture even if both input and final product fall under same tariff heading if a different idenficable commercially known product comes into existence. Case Law:- Laminated packing pvt. Ltd. V/s CCE 1990 (i.e. ELT 326)(sc)

MANUFACTURER:The liability to pay duty is on open manufacturer or producer duty cannot be recovered form his purchaser though the manufacturer may recover the same from buyer.

WHO IS THE MANUFACTURER:Sec. 2(f ) which defines the word manufacturers after defining the word manufacturer states that the word manufacturer shall be understood accordingly and shall include not only a person who employs hired labour in the production or manufactures at excisable goods but also any person who involves in their production and manufacture on his own account. Here again the definition is not exhaustive the definition contains two categories of manufacturer namely. I:- Persons who manufacture goods themselves on their own account. II:-Persons who gets the goods manufactured through hired labor. Since the definition is not exhaustive the word manufacturer has to be understood in its natural meaning. Manufacturer is a person who actually manufacture of produce excisable goods.

1:- MANUFACTURED THROUGH HIRED LABOUR:A person will be treated as manufacturer if he engaged hired labor who may be employee or contractor for manufacture of excisable goods. A hired labor is one who hires himself to work for an under control of another for wages.

2:- MANUFACTURE ON HIS OWN ACCOUNT:- The word on his


own account in the definition of manufacture indicate that a person will be treated as manufacture even if the manufactures goods for his own consumption or use. I:-Who is not manufacturer:- It is necessary to understand who is not treated as manufacture. A:-Raw material supplier is not manufacture:- It is common in industries to supply raw material to a job worked or processor and get the goods manufactured from him in his factory like bajaj, maruti, mahindra or premier automobile vary often get many parts manufactured form outside on jobwork basis. In such cases they will not be treated as manufacturer even if the raw material supplied by them right of rejection is retained by them. B:- Brand owner is not the manufacturer:Some large units get their goods manufactured from others under their brand

name instead of manufacturing it themselves. They usually control quality may even supply the design for e.g. bajaj electricals many electrical goods manufactured footwear and use brand name some large companies also get the goods manufactured from small scale units under their brand names. In such cases bajaj bata or the formestical companies will not be treated as manufacturer even if they exercise quality control or allow use of their brand name or provide financial help to the small manufacturers or even supply the raw material if their relation with the manufactures is principal to principal basis. C:- Loan license :- Loan license is not manufacture in drug license supplies raw material to other having manufacturing facility. Person supplying the raw material is termed as loan license. He has to obtain loan license as per rule 138 A of drugs and cosmetics rule. Goods are manufactured by factory owner under brand name loan license. In such case the loan license is not the manufacturer. The owner of factory which carries on the actual manufacturing activity is the manufacture. D:- Contractor :- Contractor supplying labour in the premises of manufacture is not manufacturer. If contractor supplies labour and goods which are manufactured in the premises of manufacture with his machinery the contractor cannot be treated as manufacturer. DUMMY MANUFACTURER:- The above position regarding supplies of raw material or brand name owner is valid only if the actual manufacture is not dummy or fague or is not working under direct control or supervision of raw material supplier. However, mere quality check or control over price will not make the manufacturer dummy. REGISTRATION UNDER CENTRAL EXCISE: In terms of section 6 of the CEA,1944 a manufacturer of any excisable goods is required to register himself with the central excise office within whose range the factory of the manufacturer is located. Rule 9 of the CCR, 1944 further amplifies various procedure aspect of registration as a manufacture. Under rule 9(1) the following categories of persons have been specified by the government to be under an obligation to apply to registration. 1:- Person require registration:A:- Manufacture of excisable goods( issuing invoice under rule 11 ) B:- Producer of excisable goods ( issuing invoice under rule 11 ) C:- Warehouse where excisable goods are stored without payment of duty. D:- Users who bring the goods without payment of duty under central excise( removal of goods at concessional rate of duty for manufacture of

excisable goods )rules, 2001 procedure. E:- Persons who obtain excisable goods for availing end use based exemption notification. F:- Exporters manufacturing or processing export goods by using duty paid inputs and intending to claim rebate of such duty or by using inputs receives without payment of duty and exporting the finished export goods. G:- Importer( who will issue invoice under CENVAT rules, 2001 ) H:- Dealer of imported goods( whether first second stage who will issue invoice under CENVAT rules 2001 ) I:- First stage dealer of excisable goods( who will issue invoice under CENVAT rule 2001 ) J :- Second stage dealer of excisable goods( who will issue invoice under CENVAT rules 2001) Manufacture/ producer/ warehouse/ owner must apply for registration before commencement of manufacture, production or warehousing of goods. FIRST STAGE DEALER:- FSD means a dealer who purchases either from the manufacturers factory or depot or from the consignment agent of the manufacturers or from any other premises from where the goods are sold by or on behalf of the said manufacturer or from an importer of the goods. SECOND STAGE DEALER means the dealer who purchases the goods form the first stage dealer. PROCEDURE FOR REGISTRATION IS A S UNDER:1:- Application for registration:- Application for registration is to be made in form A-1 in quadruplicate to jurisidictional RSCE. The application should be signed by the authorized signatory only, in case of partnership firm the application should contain the name of all the partners and should be signed by all the partners. The following doucuments should be enclosed with the application:A:- Certified copy of the sales tax registration certificate. B:- Certified copy of income tax permanent account number. C:- Ground plan/ map/ layout/ of the factory/ office/ godown if it is separate with full postal address marking on ground plan of major plant and machinery where they are installed. Where factory premises are used to manufacture both excisable as well as non excisable goods than the person intending to register has to give only a portion of the ground plan wherein manufacturing activity pertaining to excisable goods is undertaken. D:- Certified copy of the factory license/ shopestablishment certificate if any.

E:- Certified copy of certificate of incorporation/ certificate for commencement of business in case of company. F:- Certified copy of partnership deed in case of firm. G:-Certified copy of memorandum and articles of association in case of private/ public ltd. Company. H:- Copy of bye laws of the society if the manufacture is the co-operative society. I:- Power of attorney for signing excise documents in case of person other than partner J:- Board resolution copy for authorizing to sign and submit excise documents application also procure or collect central excise registration certificate in favour of any one director. K:- If the premises godown is owned than property tax receipts societys maintainance receipt, if the premises/ godowns is rented then rent receipt or if there is subtenancy or sublease then such agreements certified copy. L:- No physical verification of premises or godown will be done before issue of registration certificate the bonafide of the applicant will be verified form the certified copies of the above documents. M:- There is no fee for registration and a factory/ depot etc. is to be registered once only i.e. there is no requirement for renewing the registration. N:-Registration certificate in form re duly typed in triplicate indicate therein all goods manufactured/ traded with proper nomenclature tariff headings/ sub headings. O:- Manufacture applicant are required to submit in addition to above the following additional details/ documents with form A-1. P:- List of complete plant and machinery installed within the factory premises. Q:- List of final products list of intermediate products list of waste scrap to be manufactured or produced with full description relevant tariff headings/ sub headings numbers. R:- Details of input with tariff headings and sub headings. S:- Details of manufacturing process if possible sequence of operations/ process involved in the manufacture of the product..

RECORDS OF PRODUCTION
1:- DAILY STOCK ACCOUNT REGISTER (RG 1):Under rule 10 of the central excise rules the manufacture is required to maintain a daily stock account of the excisable goods manufactured by him in daily stock account register. Daily stock account

register is to be maintained on daily basis. In case there is non-production or dispatch on a particular day nil entries are to be made in the daily stock account register. The commissioner has the power to grant exemption form making mil entries in the register. In case of default, goods are liable to be confiscated. The register is not required to be pre authenticated by the authorities before being brought into use. However, first page and last page of the daily stock account register is to be pre authenticated by producer or the manufacture or his authorized agent.

RECORDS IN DAILY STOCK REGISTER:A:- Quantity deposited in the store room or other place of storage. B:- Quantity removed after payment of duty from such store room or other place of storage or from the place or premises specified under rule 9. C:- for recording the date of storage of loose goods in the finishing room. D:- The date of subsequent transfer of pacted goods from finishing room to the finished goods store room E:- Process waste and scrap which are excisable under the tariff. F:- Quantity delivered form the factory without payment of duty for export or other purpose and the rate of duty the amount of such duty.

DAY AND TIME OF RECORDING:Usually manufacturers accumulate the days production and make a consolidated entry. In such cases, assessee should inform to the jurisdictional range superitendent and assistant commissioner the day and time by which the daily production will be entered in daily stock account register. Goods in gully manufactured condition should be accounted within one hour of the close of the day. The entries in the daily stock account register are made on 24 hours cycle i.e. production of excisable goods for the previous 24 hours is entered in the daily stock account register every morning at the commencement of the working day. Entries in the register cab also be made shift wise. Assessee working under three shifts,