er-3 or er-1

[Asked by Guest]

We are manufacturing capital goods  with annual turnover of 1.3 crores.  Due to customer requirements we are NOT utilizing the SSI exemption of 1.5 cr.

What form we have to file? ER-3 or ER-1

[R MUTHURAJ]

Dear Mr.Ganesh,

Since you are not opting for SSI, you have to file the ER-1 returns meant for Non-SSI categories.

 Regards,

R.Muthuraj

Mob: 099944 54039

Dear Mr. Muthuraj.

Point Noted. Thank you very much for the reply.

 

[YAGAY and SUN]

The ER-1 is required to be furnished through www.aces.gov.in

 

[rajkumar shukla]

In my view, ER3 is required to be filed in case assessee is eligible for ssi exemption. since you are eligible for ssi because of your turnover, although you have not availed it , you may file ER3.

[PAWAN KUMAR]

As per your statement you are eligible for exemption under SSI Scheme but not availed due to customer requirement. You have selected the option for paying duty at normal rate. In my view, you have to file ER-1 return as you have paid duty as per normal rate and not availed the exemption under SSI.

[rajkumar shukla]

please quote authority for your answers .

[SHIVKUMAR SHARMA]

Dear Ganesh

You can file ER-3 Return as per Rule 12 of Central Excise Rule, 2002.For this you may please refer Explanation-1 given on page No.2.16 of R.K JAIN'S Central excise law manual 52nd Edition.As Mr Rajkumar

shukla is rightly said that it is not the matter whether you are availing SSI exemption or not because your Annual

turnover is not more than 400 Lacs. In this case you can make payment of excise duty on quarterly basis & also avail 100% cenvat credit on capital goods in the financial year in which you have received the same.

 

SHIVKUMAR SHARMA

[Chintamani Bhide]

Mr. Ganesh,

What Mr. Shukla & Sharma commented/stated is absolutely correct. If I remember correctly, DO letter issued in 2011 budget also clarified that irrespective whether the unit is paying duty or not, as long as it is 'eligible' (i.e. turnover below 400 lakhs) it can pay duty quarterly and file return quarterly.

The word 'eligible' is defined in the Explanation to Rule 12 as Mr. Sharma rightly mentioned.

therefore you can file ER 3 and pay duty quarterly.

A similar confusion is prevailing among the departmental officers, not just on this issue, but also in respect of filing of ER4/5/6 by the Assessees who have crossed duty payment of 10 Lakhs.

Dear All,

Thank you for the information provided.  Even though i believe that  i am eligible to file ER3, Since the Excise authorities insisting, i have filed ER1 for the month of July (To avoid problems)

Thanks to all

Ganesh K.

AI Summary

SSI eligibility permits filing ER-3 with quarterly duty payment even when duty is paid at normal rates.
Where an assessee is eligible for SSI, the eligibility explanation and administrative guidance allow filing ER-3 with quarterly duty payment and claiming 100% cenvat credit on capital goods; however, if the assessee elects not to avail the SSI exemption and pays duty at normal rates, the common and administratively accepted practice is to file ER-1 (the non SSI return) through the electronic return system.