Due date for payment for those availing 1/2011 CE

[Ramesh Agarwal]

Whether an assessee is availing the benefit of  Exemption Notification No 1/2011 CE Dated 1/3/2011 and is manufacturing only those goods which are specified in the said notification and is filling ER-8 Return can pay duty on quarterly basis or not

[Surender Gupta]

I have tried to find any notification or rules i.e. Rule 8 of  Central Excise Rules, 2002 for providing any concession for making quarterly payment instead of monthly payment. But could not. 

Therefore, unit availing notification no. 1/2011 CE is not entitled for quarterly payment of duty of excise.

However, there is one exception to this submission that, if the unit is eligible for availing SSI exemption i.e. its turnover is not exceeding 4 crores, during the previous year, it can opt for making payment on quarterly basis. - Rule 8 as amended is self explanatory.

AI Summary

Quarterly payment eligibility for excise duty denied for exemption-notified manufacturers, except where SSI turnover criteria allow quarterly payments. Units manufacturing only goods covered by Exemption Notification No. 1/2011 CE and filing ER-8 returns are not entitled to make quarterly excise duty payments because neither the notification nor the Central Excise Rules authorise substitution of quarterly for monthly payments; however, a unit eligible for the SSI exemption by reason of its turnover in the previous year being below the small-scale industry threshold may opt to pay duty quarterly under the amended payment rules applicable to SSI assessees.