CENTRAL EXCISE RULES, 1944
|1.||Short title and extent|
|3.||Agent of owner of goods, factory, warehouse or establishment ,organization or undertaking providing or rendering services to be deemed owner for certain purposes
APPOINTMENT AND POWERS OF OFFICERS
|4.||Authorization of officers|
|5.||Delegation of powers by the Chief Collector and Collector|
|6.||Exercise of powers and discharge of duties
LEVY AND REFUND OF, AND EXEMPTION FROM, DUTY
|7.||Recovery of Duty|
|9.||Time and manner of payment of Duty|
|10.||Recovery of duty short-levied or erroneously refunded, etc|
|11.||No refund of charges erroneously levied or paid, unless claimed within one year|
|12.||Rebate of duty on goods exported|
|12-A.||Rebate of duty on exported goods which are made from excisable goods|
|13.||Export under bond of goods on which duty has not been paid|
|14A.||Validity of bonds
|15 – 25-A||[Rules 15 -25-A Omitted ]|
|26.||Despatch of products to a bonded warehouse|
|27 – 33||[Rules 27-33 Omitted]|
|34.||Period of validity of transport documents|
|35 – 42-A||[Rules 35-42-A Omitted]|
|42-B.||Receipt of non-duty paid un-manufactured tobacco in a factory manufacturing cigarettes, smoking mixtures for pipes and cigarettes and dutiable cigars and cheroots|
CENTRAL EXCISE RULES, 1944
- Short title and extent. These rules may be called the Central Excise Rules, 1944.
2. Definitions.:- In these Rules, unless there is anything repugnant in the subject or context,:–
(a) Act means the Central Excises Act, 1944 (I of 1944);
(b) Bad debt means loans classified as bad and doubtful under Prudential Regulations for Loan Classification issued by the State Bank of Pakistan;
(bbb) Chief Collector means,:-
(i) In the Provinces of Sindh and Balochistan, the Chief Collector (Southern Region), and
(ii) In the Provinces of Punjab and North-West Frontier, the Chief Collector (Northern Region).
(d) Collector means a central excise officer appointed to exercise powers and Discharge duties conferred or imposed on Collector under the Act or the Rules in relation to the Collectorates below:-
|Collectorate of Central Excise, Hyderabad||The area comprising the Province of Sind excluding Civil Division of Karachi.|
|Collectorate of Central Excise, Quetta.||The area comprising the Province of Balochistan, including the Provincially Administered Tribal Areas thereof.|
|Collectorate of Central Excises, Faisalabad.||The area included in Civil Divisions of Faisalabad and Sargodha.|
|Collectorate of Central Excise, Gujranwala.||The area included in Civil Division of Gujranwala.|
|Collectorate of Central Excise, Multan.||The area included in the Civil Divisions of Dera Ghazi Khan, Bahawalpur and Multan|
|Collectorate of Central Excise, Rawalpindi.||The area included in the Civil Division of Rawalpindi, the Islamabad Capital territory and the Northern Areas.|
|Collectorate of Central||The area comprising the Province of Excise, Peshawar.the North West Frontier, as well as the Provincially Administered Tribunal Areas thereof and the Federally Administered Tribal Areas].|
|Collector of Central Excise, Karachi||The area comprising of Civil Division of Karachi in the Province of the Sind|
|Collector of Central Excise, Lahore.||The area comprising of Civil Division of Lahore in the Province of the Punjab.]|
(cc) Collector Appeals means a Collector competent of hear appeals under section 35 of the Act against orders or decisions passed under the Act or the rules made thereunder by Deputy Collector, Assistant Collector or Superintendent posted in the Collectorates specified against each::-
|(i) Collector Appeals, Northern Zone, Islamabad.||Collectorates of Central Excise, Peshawar, Rawalpindi and Gujranwala;|
|(ii) Collector Appeals, Central Zone, Lahore||Collectorates of Central Excise, .Lahore, Faisalabad and Multan;|
|(iii) Collector Appeals, Western Zone, Karachi.||Collectorates of Central Excise, Hyderabad and Quetta; and|
|(iv) Collector Appeals, Southern Zone, Karachi.||Collectorates of Central Excise Karachi.|
(f) Cottage industry means:-
(1) An enterprise (not being owned by a joint stock company) which fulfils the following conditions, namely::–
(a) It is basically an enterprise in which the owner combines in himself the functions of the investor and the labourer;
(b) The capital employed therein does not exceed three hundred thousand rupees] at any time during the year;
(c) The number of workers employed therein on a single shift basis does not, including the owner, the members of his family, relations, dependents or others, whether working whole-time or part-time and whether for or without any wages, remuneration or compensation in cash or otherwise, exceed fifteen at any time during the year; and
(d) The owner thereof does not own any other cottage industry or any other enterprise or where he does so, either wholly or in part, the capital employed at any time during the year in all such industries and enterprises, if any, taken together does not exceed 1[three hundred thousand rupees]; and
(2) Capital employed means every type of capital whether invested in fixed or current assets including borrowed capital but investment in business premises shall not be considered while computing the amount of capital employed:
Provided that, if any property like plant, machinery furniture or fixture is not owned by the manufacturer, the market value of such property shall be deemed to be a part of the capital employed.”;
(g) Curer means a person curing unmanufactured products whether of his own growing or grown by others, and includes a person curing such products by the labour of his relatives, dependents or any person in his employ;
(j) Green tobacco means tobacco before it has been subjected to any process of curing;
(k) Grower means a person growing unmanufactured products, whether by his own labour, or by that of his relatives, dependents or other persons in his employ, or by tenants;
(n) Proper form means the appropriate forms as prescribed in Appendix I to these rules;
(o) Proper officer means the officer in whose jurisdiction the land or premises of the producer of any excisable goods, or persons engaged in any process of production of, or trade in,such goods or containers thereof, whether as a grower, agent, or manufacturer, o intended grower, curer, wholesale dealer, broker,commission agent, or manufacturer, or the land or premises where excisable services are provided or rendered are situated;
(s) Ship handled means a ship or a shipping line represented or business transacted in a port on behalf of ship owner or charterer, by a shipping agent each time a ship calls at any port in Pakistan;
(u) Unmanufactured products means excisable goods which are described in the First Schedule to the Act as unmanufactured or cured;
(v) Warehouse means any place or premises licensed under Rule 140.
3. Agent of owner of goods, factory, warehouse or establishment ,organization or undertaking providing or rendering services to be deemed owner for certain purposes.:–(1) When any person is expressly or impliedly authorised by the owner of any goods, factory, warehouse or establishment, organization or undertaking providing or rendering services to be his agent in respect of such goods, factory, warehouse or establishment, organization or undertaking, providing or rendering services for all or any of the purposes of these Rules, and such authorization is approved by the an officer not below the rank of Assistant Collector, such person shall, for such purposes, be deemed to be the owner of such goods, factory, warehouse or establishment, organization or undertaking, providing or rendering services.
(2) Every such owner expressly desiring to authorise any person or persons to deal, on his behalf, with the Central Excise Department for all or any of the purposes of these Rules, shall submit Special Power of Attorney in favour of such person or persons to the proper officer:
Provided that a sole proprietor intending to deal directly with the Department shall give notice of his intention to do so on plain paper.
APPOINTMENT AND POWERS OF OFFICERS
- Authorization of officers :- The Central Board of Revenue may authorise any Central Excise Officer to exercise all or any of the power conferred by the Act or these Rules.
5. Delegation of powers by the Chief Collector and Collector:- Unless the Federal Government in any case otherwise directs, the Chief Collector and Collector may authorise any officer subordinate to him to exercise throughout his jurisdiction, or in any specified area therein, all or any or the powers of a Chief Collector and Collector under these Rules.
- Exercise of powers and discharge of duties:-
(1) The Chief Collector may,:-
(a) Exercise all or any of he powers except the powers of adjudication; and
(b) Discharge all or any of the duties, conferred or imposed on any officer, subordinate to him, under these rules.
(2) A Central Excise Officer shall be competent to exercise all power and discharge all duties conferred or imposed on any officer lower in rank to him.
LEVY AND REFUND OF, AND EXEMPTION FROM, DUTY
- Recovery of Duty :- Every person who produces, cures, 6[purchases or otherwise acquires without payment of duty], or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty or duties due on such goods, at such time and place and to such persons as may be designated in, or under the authority of these Rules, whether the payment of such duties is secured by bone or otherwise; provided that, in the case of un- manufactured products, the person purchasing or acquiring them form a curer shall assume the liability for the payment of duty; and if any such person does not pay such duty or duties at such time and place and to such person as aforesaid, or upon written demand made by the proper officer, whether such demand is delivered personally or is left at his dwelling house, or at the premises where such duty or duties have been charged, every such person shall be liable to a penalty under these Rules.
Provided that, in the case of natural gas, the liability for payment of duty shall, if the Central board of Revenue of order in writing so directs, be of the distributors or the consumers.
8. [Omitted] 9. Time and manner of payment of Duty. :- No excisable goods shall be removed from any place where they are produced or manufactured or any premises appurtenant thereto, which the manufacturer may declare and get approved by the Collector in this behalf, whether for consumption, export, or manufacture of any other commodity in or outside such place, until the excise duty leviable thereon has been paid at such place and in such manner as is prescribed in these Rules or as the Collector may require, and except on presentation of an application in the proper form and on obtaining the permission of the proper officer on the form:
Provided that such goods may be stored, after their production or manufacture and due entry in the prescribed record, in any approved storage place within the licensed premises of the manufacturer, only upto one year from the date of their manufacture or upto such extended period not exceeding three years as may be approved by the Collector on case to case basis on the request of the manufacturer in writing:
Provided also that such goods may be deposited without payment of duty in a storeroom or other place of storage approved by the Collector under rule 47 or rule 237 or in a warehouse Omitted licensed under rule 140 or may be exported under bond as provided in rule 13:
Provided further that the Collector may, if he thinks fit, instead of requiring payment of duty in respect of each separate consignment of goods removed from the place or premises specified in
this behalf, or from a storeroom or warehouse duly approved, and licensed by him, keep with any person dealing in such goods an account-current of the duties payable thereon, and such account shall be settled at intervals not exceeding one month, and the account- holder shall periodically make deposit therein sufficient in the opinion of the Collector to cover the duty due on the goods intended to be removed from the place of production, manufacture or storage.
Provided further that the Central Board of Revenue may, be notification in the official Gazette, allow the manufacturer of any goods or class of goods to pay the central excise duty within a
specified period after the removal of the goods, on such conditions or restrictions as may be specified in the said notification.
Provided further that the duty in respect of goods imported into Pakistan shall be charged on collected in the same manner and at the same time as if it were a duty of customs payable under the Customs Act, 1969 (IV of 1969).
9A. [Omitted] 10. Recovery of duty short-levied or erroneously refunded, etc. :- (1) Where by reason of any inadvertence, error or misconstruction, any duty or charge has not been levied or has been short levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within one year of the relevant date by an officer not below the rank of Superintendent requiring him to show cause why he should not pay the amount specified in the notice.
(2) Where by reason of any mis-declaration, false information or collusion, any duty or charge has not been levied or has been short levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within three years of the relevant date by the competent adjudicating authority, requiring him to show cause why he should not pay the amount specified in the notice and be penalized under the law and the rules.
(3) Where by reason of any false document, counterfeit seal or impression, fraud or any other heinous offence any duty of charge has not been levied or has been short levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within ten years of the relevant date by the competent adjudicating authority, requiring him to show cause why he should not pay the amount, specified in the notice and be penalized under the rules.
(4) For the purpose of this rule, the expression “relevant date” means:-
(a) in any case where duty has not been levied or has been short levied, the date on which clearance of goods is made or the date prescribed for payment of duty for the services provided or rendered;
(b) in case where duty has been erroneously refunded, date of its refund.
11. No refund of charges erroneously levied or paid, unless claimed within one year. :- No duty which has been paid, or has been adjusted in an account-current maintained with the Collector under Rule 9, and of which repayment wholly or in part is claimed in consequence of the same having been paid through inadvertence, error or misconstruction, shall be refunded and no abatement in duty shall be allowed, unless a written claim is lodged with the proper officer within one year from the date of such payment or adjustment as the case may be.
12. Rebate of duty on goods exported. :- (1) Rebate of the duty paid on any excisable goods may be granted by the Collector if the goods are exported in accordance with the procedure set out in the relevant provisions of Chapter IX of these Rules, and subject to the conditions and limitations contained in this rule.
Provided that the Central Board of Revenue may, with the prior approval of the Federal Government, by a notification in the official Gazette, withdraw or disallow grant of rebate of duty paid on any excisable goods.
(2) An application for export in Form A.R. 3 shall be submitted to the proper officer at the time of removal of the goods from the factory on payment of duty under Rule 52 or Rule 238, and the place where the goods shall be stored pending export shall be stated on the application in the Remarks column of that Form.
(3) If the person making the application under sub-rule (2) is different from the manufacturer who paid the duty on the goods under Rule 52 or Rule 238, the name and address of such person shall, at the time of removal of the goods from the factory, be shown by the proper officer over his dated signature in the Remarks column of the application under Rule 52 or the Clearance Memorandum under Rule 238, as the case may be.
(4) The goods allowed to be removed under sub-rule (2) and sub-rule (3) shall e exported within a period of three months from the date of removal of the goods or within such extended period as the Collector may in any particular case allow.
(5) The claim for the rebate of the duty shall be lodged, within three months of the date on which the goods were exported, with the Collector in whose jurisdiction the duty was paid.
(6) The rebate may be granted by the Collector if he is satisfied that duty had actually been paid on the goods which were exported and that the goods were duty exported in accordance with the prescribed procedure. (6-A) In the case of a textile mill who opted, in pursuance of the Ministry of Finance Notification No. S.R.O. 477(I)71, dated 7th October, 1971 or No. S.R.O. 478(I)/71, dated 7th October, 1971, to pay duty under sub-section (1) of section 3 of the Act, the rebate granted in respect of goods exported out of the stocks held on the 1st November, 1971, shall not exceed the amount of duty paid by such mill under sub-section (4) of that section during the financial year commencing on the 1st July, 1971. (6-B) In the case of textile mill who opted, in pursuance of the Ministry of Finance Notification No. S.R.O. 611(I)/71, dated the 16 the December, 1971 or S.R.O. No. 612(I)/71, to pay duty under sub-section (1) of section 3 of the Act the rebate granted in respect of goods exported out of the stocks held on the 1st January, 1972, shall not exceed the amount of duty paid by such mill under sub-section (4) of that section during the financial year commencing on the 1st July, 1971. (6-C) Notwithstanding the provisions of sub-rules (6-A) and (6-B), in the case of a textile mill who exercised option under sub-rule (2-AA) of Rule 3 of the Excise Duty on Production Capacity (Cotton yarn) Rules, 1968, or under sub-rule (2-AA) of rule 3 of the Excise Duty on Production Capacity (Cotton Fabrics) Rules, 1968, on any day following the first day of January, 1972, but before the 1st day of July, 1972, or who exercised such option on or before the 30th June of any subsequent financial year, to pay duty under sub-section (1) of section 3 of the Act, the rebate granted in respect of goods exported out of the stock held on the the case may be, shall not exceed the amount that would have been deductible in the manner laid down in the Excise Duty on Production Capacity (Cotton Yarn) Rules, 1968, or the Excise Duty on Production Capacity (Cotton Fabrics) Rules, 1968, as the case may be, on account of exports made during the financial year immediately preceding the said first day of July.
(7) No rebate under this shall be admissible if the goods, after removal from the factory on payment of duty, were subject to any further process of manufacture or otherwise tampered with after such removal and before export.
(8) No rebate under this rule shall be admissible if the amount is less than five rupees in respect of any one consignment of goods exported.
(9) In the case of goods supplied for consumption on board a vessel or aircraft proceeding to a foreign destination, the rebate shall be admissible only in respect of such goods and such quantities as the Collector may consider reasonable for the purpose.
(10) If any person commits a breach of this rule, he shall be liable to a penalty under these Rules.
12-A. Rebate of duty on exported goods which are made from excisable goods. :- (1) The Central Board of Revenue may, be notification in the official Gazette, grant rebate Omitted of duty paid on any goods used in the manufacture of any goods manufactured in and exported out of Pakistan, except those notified by the Central Board of Revenue under proviso to sub-rule (1) of rule 12. or shipped as provisions or stores for consumption on board a ship or aircraft proceeding to a destination outside Pakistan, at such rate or rates and subject to such conditions and limitations as may be specified in the notification.
(2) A person desiring to be granted a rebate of Omitted duty under sub-rule (1) in respect of goods in the manufacture of which excisable goods have been used which are to b exported shall make an application to the Central Board of Revenue declaring therein the name and address of his business, the description, quantity and value of excisable and non-excisable goods used, the rate and amount of excise duty levied and the value of goods for export. The application shall be submitted in duplicate and shall be signed by the applicant himself or by his duly authorised agent.
(3) On the receipt of an applicant under sub-rule (2), the Central Board of Revenue may cause such enquiries to be made as it deems necessary to enable it to decide whether any rebate be granted and if so, at what rate or rates and from what date.
(4) Rules 197 and 198 shall apply to the premises wherein the goods in respect of which rebate is granted under sub-rule (1) are manufactured and to the accounts relating to such goods.
(5) In order to obtain payment of rebate the applicant shall produce, before the appropriate officer of Customs or officer of Central Excise not below the rank of Assistant Collector incharge of the customs station from whose jurisdiction the goods were exported or before the Collector of Central Excise where so stated in a Notification, the shipping documents certifying the export of the consignment, and after satisfying himself that the claim is in order, such officer shall sanction the payment of the rebate in accordance with the relative Notification under sub-rule (1) as in force on the date of export.
Explanation. :- For the purpose of this rule, an officer of Customs not below the rank of an Assistant Collector of Customs shall be deemed to be a Central Excise Officer within the meaning of Clause (b) of Section 2 of the Act. (5A) The Collector of Customs from whose jurisdiction goods are exported shall be deemed to be the Collector of Central Excise within the meaning of clause (b) of section 2 of the Central Excises and Salt Act, 1944, to exercise powers in terms of Section 35-A of the Central Excises and Salt Act, 1944.
(6) The cases or packages in which such goods are packed shall be legibly marked in ink or oil colour or in such other durable manner as the Collector may, in any particular case, allow, with a progressive number commencing with No. (1) for each year and with the owner’s name and special mark, if any.
(11) If any of the particular entered in the application submitted under sub-rule (2) or sub-rule (5) is found to be incorrect, either before or after the export of the goods, or if the intimation required to be given by paragraph 4 of the application is not given in due time, the applicant shall be liable:-
(i) To a penalty [under these Rules for each breach of any provision of this rule;
(ii) To refund to the Government the sums received by him as rebate; and
(iii) To be deprived of the benefit of such rebate for a period of one year. (12) No rebate shall be granted if:-
(i) The claim for rebate is filed after one hundred and twenty days of the exportation or of the publication of notification, whichever is later; or
(ii) The amount of rebate admissible is less than 6[one hundred rupees.
13. Export under bond of goods on which duty has not been paid.:- (1) Excisable goods except those notified by the Central Board of Revenue under proviso to the sub-rule (1) of rule 12, may be exported without payment of duty from a licensed factory or warehouse in accordance with the procedure set out in the relevant provisions of Chapter IX of these Rules:
Provided that the owner enters into a general bond in the proper Form with such surety, security, bank guarantee or insurance guarantee in a sum equal at least to the amount of duty chargeable on all such goods under export at a time, and under such conditions as the Collector approves, for the removal of such goods for export from time to time and due arrival thereof at the place of export and their export therefrom within a period of three months from the date of application under rule 185 or rule 240 or such extended period as the Collector may, in any particular case, allow. (2) In case the manufacture is unable to export the excisable goods, he may consume the goods within Pakistan before the expiry of the period allowed for export under sub-rule (1) on payment of duty thereon at the rate applicable on the date which duty is paid:
Provided that if the rare of duty on such date is lower than the rate applicable on the date on which the goods where removed from the factory or warehouse, the duty shall be payable at such rate which was applicable on the date of such removal:
Provided further that the manufacturer shall inform the Assistant Collector incharge of the unit within twenty-four hours of consumption of the goods alongwith a copy of the treasury receipt showing the deposit of duty. (3) Except as provided in sub-rule (2), if the entire quantity of the goods is not exported in due time, or if at any time subsequent to their removal from the licensed factory or warehouse under sub-rule (1) the whole or part of the goods is consumed or otherwise disposed of within Pakistan, or if the Central Excise seals on the packages placed under rule 185 or the relative Central Excise documents are found to have been tampered with, duty due on the entire quantity of the goods removed under sub-rule (1), subject to the proviso to sub-rule (2), shall be paid forthwith on demand, and the person to whom permission was granted under sub-rule (1) to remove the goods from the licensed factory or the warehouse shall be liable to a penalty which may extend to twenty thousand rupees or ten times the amount of the duty involved, and the whole or any part of the goods which is recovered shall be liable to confiscation. (4) If a manufacturer renders himself liable to any action under sub-rule (3), the Collector may disallow removal of goods from the licensed factory or the warehouse pending payment of the total amount of duty demanded:
Provided that if the manufacturer has an account-current with the Collector and sufficient balance at his credit is available in the account-current, the amount of duty demanded may be recovered by the Collector by adjustment in that account-current.
(5) Action under sub-rules (3) and (4) may be taken without prejudice to any other action under other provisions of the Act or the rules.
(6) The manufacturer shall maintain and export register in the proper Form showing therein removal of excisable goods from the factory without payment of duty in bond for export. (7) If a person other than a manufacturer, desires to export excisable goods under this rule, such export shall be subject to the preceding sub-rules, Chapter IX of these Rules and the following conditions, namely::-
(a) Such person and manufacturer shall jointly sign the surety bond (B-2 SURETY) and shall be individually and severally responsible for accountal of goods cleared for export;
(b) Name and address of the exporter shall be given in the Remarks column of A.R. 3 and the name and address of the manufacturer shall be shown on all copies of the shipping bills under the description of the goods; and
(c) Shipping bill is prominently stamped with the words “Export under Bond as per rule 13 of the Central Excise Rules, 1944.
14A. Validity of bonds. :- Every bond executed under these rules with surety, except the bond executed under sub-rule (1) of 7[rule 153], shall, unless sooner cancelled by the Collector remain in force and the surety shall continue to be liable thereunder as long as the licence to which the bond relates continues to be valid, and for the purpose of this rule a licence shall include a licence renewed from time to time: Provided that, if any surety before the expiry of the period of the licence or renewed licence intimates to the proper officer in writing, his desire not to remain a surety, he shall cease to be such surety at the end of such period.
15 – 25-A [Rules 15 -25-A Omitted ]
26. Despatch of products to a bonded warehouse. :- Where the products are to be deposited in a warehouse, they shall be conveyed thereto under cover of a transport permit or a certificate as prescribed under the Rules.
27 – 33 [Rules 27-33 Omitted]
34. Period of validity of transport documents. :- Every transport permit granted under these Rules shall be in force only for the period specified thereon by the officer by whom it is granted, every transport certificate shall be valid only until sunset of the fourth day following that on which it is prepared, or for such shorter period as the Central Board of Revenue may be order in writing direct in any particular area or in respect of any particular commodity.
35 – 42-A [Rules 35-42-A Omitted]
42-B. Receipt of non-duty paid un-manufactured tobacco in a factory manufacturing cigarettes, smoking mixtures for pipes and cigarettes and dutiable cigars and cheroots. :- (1) If a manufacturer of cigarettes, smoking mixtures for pipes and cigarettes and dutiable cigars and cheroots desires to receive from outside any un-manufactured tobacco, otherwise than under Chapter VII of these rules, he shall submit an application in quadruplicate in the proper Form to the proper officer.
(2) After obtaining the proper officer’s endorsement, the manufacturer may bring the un-manufactured tobacco in his factory without payment of duty for storage in the bonded store room or the warehouse specifically provided for the purpose:
Provided that the transportation of the un-manufactured tobacco from the factory gate to the warehouse shall be physically supervised by the proper officer and the proper officer shall record on the Form the time of entry into the storeroom or the warehouse in his own hand:
Provided further that the un-manufactured tobacco shall be stored in the bonded store-room or the warehouse immediately after its receipt.
(3) As soon as the un-manufactured tobacco is received in the bonded store-room or the warehouse, each package, bale or bag shall be physically weighed in the presence of the proper officer and shall also be legibly marked in ink or oil colour with a progressive number, commencing with No. 1 for each calendar year and in a different series for each class of packing. The goods shall then be entered in the register in the Form WRG 1 and thereafter governed by Chapter VII of these Rules.
(4) The refuse, dust or sand obtained from the processes of duty paid tobacco during the manufacture of cigarettes or other tobacco products, shall be accounted for in From E.B. 1 by the owner of the factory manufacturing such products.