Central excise Registration of two units of same management

[Hariharan Sundaram]

Dear experts,

We are having two manufacturing units at different places. Only one premises is registered with Central Excise. We paid duty for both units from the unit registered under central excise and file consolidated ER1 return. Whether is it correct? whether we have to take registration for another unit also? Whether we have to pay excise duty again for the second unit. Kindly clarify.

Thanking you,

[YAGAY andSUN]

You would have to apply for registration under  Central Excise Act for the unit which is not registered.  Department may levy penalty on you for not getting the registration certificate even though you are paying duty from the other unit. 

[Hariharan Sundaram]

Dear pradeep ji, Thank you for prompt reply

Praeepji pl clarify whether I have to pay duty for the goods cleared from the unregistered unit. If no, pl give me authority to show that duty need not be paid again for the goods already cleared from the unregistered unit.  One more thing, whether confiscation of goods already cleared from unregistered unit is possible. What is quantum of penalty impsoable on us?

[YAGAY andSUN]

Dear Sir,

Prima facie, Department can demand duty,levy interest and also impose penalty on you provided you prove your bonafide and show them that it is regardless the premises was not registered but you were paying appropriate duty while removing of goods from the unregistered premises.

Start collecting the following documentory evidenses,namely: -

1) Copies of the Balance Sheet for the material period.

2) Schedule of sale for both the units clearly showing the quantum of duties paid thereon along with the documetory evidenses.

3) Concrete reason for not getting the registration certificate.

4) Bifurcation of ER-1, ER-4, ER-6, and ER-7. returns.

5) It is settled legal position that if the goods are not available then no confiscation can be made.

6) No you have not require to pay the duty again if you had paid to the revenue department but it will depend on the facts of the matter.

7) Yes, without any further delay, you would have to submit an application for seeking the registration certificate under  Central Excise Act.

Whether you have been issued  a Show Cause Notice by the Department as yet?  Please clarify.

Regards,

Pradeep Khatri

AI Summary

Central excise registration requirement can lead to duty, interest and penalties if an additional unit remains unregistered. Each manufacturing premise must obtain separate Central Excise registration; paying duty from a registered unit does not eliminate the obligation to register other units. The department may demand duty, interest and penalties for an unregistered unit, though additional duty is not automatically due if appropriate duty was already paid and can be proven. Confiscation requires availability of goods. Taxpayers should immediately apply for registration and collect documentary evidence such as balance sheets, sales schedules showing duties paid, and bifurcated ER returns to support their position.