CENTRAL EXCISE RETURNS:-
ER-1 : Monthly return for production and removal
of goods and Cenvat Credit
ER-2 : Monthly return on excisable goods manufactured
and input/capital goods received.
ER-3 : Quarterly return for clearance of goods
and Cenvat credit
ER-4 : Annual Financial Information Statement,
ER-5 : Cenvat-Annual return for principal input
ER-6 : Cenvat-Monthly return for principal input,
CENTRAL EXCISE LEVIABLE:-
1. Central Excise is a Tax on act of manufacture or
production while sale tax is a tax on act of sale and
for custom duty it is a tax on import of goods within
custom barriers. Excise is collected, on the goods manufactured
or produced, at the time of their removal from the factory.
2. With effect from 9-7-2004, an education cess @2%
of the aggregate duties of customs and excise is leviable.With
effect from 1-3-2007, a further secondary and Higher
education cess @1% has been imposed. However, the education
cess will be available as credit for paying education
cess on final excisable product as provided for Cenvat
Credit Rule. If goods are fully exempted from duty or
chargeable to nil duty or are cleared without payment
of duty under prescribed procedure, such as clearance
under bond, no cess would be leviable.
CENTRAL EXCISE REGISTRATION:-
Person requiring registration:- The following category
of person require registration:-
1. Every manufacturer of dutiable excisable goods,
2. First and second stage dealer (including manufacturer’s
depots and importers) desiring to issue cenvatable invoices,
3. Person holding warehouses for storing non duty paid
goods,
4. Person who obtain excisable goods for availing end
used based exemption,
Separate registration is required in respect of separate
premises (factory, depot, godown etc.) except in cases
where two or more premises are actually part of the
same factory (where processes are interlinked) but are
segregated by public road, canal or railway line.
Person exempt for registration:-
1. Manufacturers of goods which are chargeable to nil
rate of duty or are fully exempt. They should however,
file the prescribed declaration in the beginning of
every financial year,
2.Person who gets their goods manufactured by others,
except the person who gets certain textile item manufactured
on job work,
3. Person manufacturing excisable goods under the custom
warehousing procedure subject to certain condition,
4. Wholesale trader or dealer of excisable goods (except
first stage dealer, second stage dealer and depot)
5. Job work of goods under ch.61 &62,on behalf of
another person who undertakes to pay duty and comply
with all the procedure,
6.Approved/licensed units in export processing zone,
SEZ, and 100% export oriented unit, deeming EOUs/EPZ
units are registered are not applicable if such units
are having clearance in or procurement from domestic
traffic area.
Procedure for registration:-
1. Application for registration:-Before starting production
of excisable goods or dealership for the purpose of
issuing invoices to pass Cenvat credit, registration
should be obtained. The application form specified for
this purpose is given in annexure I.
2. Registration certificate:-The registration certificate
in prescribed format [Form RC annexure 2] will be issued
within 7 days. Normally RC can be obtained across the
table on the date of application itself.
3. Parmanent nature of RC:-Registration certificate
once issued is permanent except when it is suspended
or revoked .RC is not required to be renewed.
4. No fee for registration:-Registration certificate
is free of charge and there is no fee prescribed for
the same.
5. Same form for intimation of charges:-The same application
form is to be used for intimating change in the information
furnished originally at the time of applying for registration
certificate. Manufacture of new or additional product
need not to be intimated.
6. Transfer of business:-Excise registration is premises
specific. But it is non transferable and hence, when
the business is transferred to another person by way
of sale or lease, the person taking over the business
should take fresh registration in his name.
7. Change in constitution:-If the entity holding central
excise registration is a firm or company or association
of person, any change in the constitution should be
intimated to the concerned central excise officer within
30 days.
8. De-registration:-If the business is not carried,
registration certificate should be surrendered to the
superintendent of central excise. A declaration specified
for this purpose should be given while surrendering
RC.
9.Quoting RC number:-The PAN based excise registration
number is required to be printed on the top of on all
central excise invoice, duty payment challans,PLA and
other form/document textile unit coming into excise
fold for the first time can clear their goods and pay
duty pending grant of registration.
10. Revocation or suspension of registration:-For contravention
of provision of central excise act 1944/central excise
rule 2002 and other specified offences, RC can be suspended
or revoked by the deputy/assistant commissioner. As
there are separate penal provision tom take care of
various infraction, this is seldom resorted to.
MEANING OF MANUFACTURE:-
To levy central excise duty, it is necessary that new
article should come into existence as a result of manufacturing
activity, unless there is a finding of manufacture,
excise duty is not attracted. Thus the term manufacture
is of significant importance in central excise field.
The expression ‘manufacture’ has been defined
in section 2(f) of the act according to which it includes
any process,-
(i) Incidental or ancillary to the completion of manufactured
product,
(ii) Which is specified in relation to any goods in
the section or chapter note of the schedule to the central
excise tariff act,1985 as amounting to manufacture;
or
(iii) Which, in relation to the goods specified in the
third schedule [MRP goods etc] involve packing or repacking
of such goods in a unit container or labeling or relabeling
of container including the declaration or alteration
of retail sale price on it or adoption of any other
treatment on the goods to render the product marketable
to the consumer,
Small Scale Industry & Excise Exemption:-
(1) For the purpose of assisting smaller industrial
units, excise duty exemption has been granted to such
units. As per excise, the definition of Small Scale
Industry (SSI) is different from the one adopted commonly
for trade purpose. A manufacturing unit is considered
as SSI in Excise when:
* Total value of clearances of excisable goods for home
consumption does not exceed Rs.4 crores during previous
financial year,
* The unit is not required to pay excise duty till its
clearance value reaches Rs.1.50 crores.
Even if eligible, a person has option not to avail this
exemption. He can pay normal rate of duty and such option
cannot be withdrawn during the financial year. He should
intimate his intention of not availing exemption before
removing goods on payment of duty. SSIs need not get
registration certificate till they cross the exemption
limit. A declaration has been prescribed in annexure
4 which is required to be filled with deputy/ asst.commissioner
when the value of clearance crosses Rs.90 lakhs. The
exemption is subject to several conditions. Cenvat credit
of duty paid on input cannot be taken while under exemption.
In case of duty paid on capital goods, Cenvat credit
can be taken and accumulated but can be utilized only
after crossing exemption limit. An eligible person who
has been paying excise duty but wishes to avail SSI
exemption, should pay an amount equivalent to Cenvat
credit taken on input lying in stock or in process or
contained in final product lying in stock on the date
of choosing to avail exemption.
(2) For computing the ceiling/monetary limit of clearances
for eligibility under SSI notification in respect of
commodities whose assessable value is determined under
section 4A (MRP less notified report), such assemble
value will be taken as the value. Clearance at full
exemption rate also to be taken into consideration to
determine the aggregate ceiling of Rs.4Crores but not
deemed export to FTZ/SEZ/100%EOU/EHTP/ESTP units or
supplies to U.N.O agencies etc. Under notification number.108/95-C.E
or goods produced on job work basis. However for determining
the limit of first Rs. 150 lakhs, fully exempted (under
another notification) or nil rated clearance do not
count.
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