Registration fro Importers from April 2014

[Vinay Kunte]

In view of the amendments to Rule 9 of the Central Excise Rules 2002 and Rule 9 of Cenvat Credit Rules 2004, it is now mandatory for an importer to get himself registered as Importer in addition to the existing registration as Dealer of excisable goods.

Can the Assesses have two registrations under Central excise for the same premises? Will it be necessary to submit all the documents in relation to the proposed new registration for the existing premises which is already registered with the Dept.? 

[Chintamani Bhide]

Mr. Vinay,'

Unfortunately, the answer is 'Yes' for your first question. The same premises are to be registered as 'Importer'. It is possible that all the documents may not be required, but the photo copy of earlier RC and IEC registration may be called for. 

if the dealer does not procure anything from local dealer/manufacturer, he may surrender the earlier registration after filing returns for the qtr. Otherwise he will have to file two returns every quarter.

Chnitamani Bhide

[Vinay Kunte]

Is there any Circular / Instructions / Clarification / Trade Notice issued by the Department? which stipulates that the it is Mandatory to get the new registration, for the existing Registered assessees who are involved in the trading of self-imported goods or who are passing on the Cenvat credit under the cover of an excise invoice to the customers, as the Notifications does not make it mandatory for the existing assessees neither it stipulates such requirements but only facilitates the registration as Importer in ACES and also allows the credit to be availed on the invoices issued by the Importers, filing of Returns etc.

[Chintamani Bhide]

Notification 8/2014 amended the CER 2002 and made it necessary for an importer to get registered wef 1st April. Not. 10 was issued to facilitate this registration by providing the category 'Importer' and corresponding box, which was absent in earlier A-1 form.

Even today there is no clarification issued by the Board in this regard, The jurisdictional authorities are not clear and simply sticking to amended CER. I raised this topic on LinkedIn and also written to ACES. Aces wrote back that it is necessary for a person already registered as a dealer to get one more registration as an importer. They also informed me that the new registration number will involve part of IEC code also. I spoke to ACES toll free number, but nobody could give satisfactory answers to questions such as :1) Can same premises be registered twice ? 2) What happens to old stock of imported goods lying in RG23D ? 3) After registration as an importer, should there be a separate series of Invoices, Separate RG23D etc? 4) Why the category importer is not available in amendment mode on ACES so that existing registration no does not change ? (like adding a service) No satisfactory answers received from ACES people nor range/divisional superintendents. In fact, some of the supdts. asked the assessees already registered, to get registered as soon as possible and simply to produce copy of IEC registration along with print-out of A1.

I advised my clients who have been importing as well as locally procuring goods as a dealer to get registered as an Importer by way of abundant precaution so as to avoid SCN and penalty for non-compliance of CER. Those who deal only in imported goods, can surrender their earlier registration after submitting returns for the quarter and continue only with new registration.

[Vinay Kunte]

Thank you Sir, for the detailed reply and illustration and guidance.

[Madhukar N Hiregange]

In the earlier period there was no express requirement for the importer to be registered for passing on the CVD+SAD. However as a matter of caution we had been telling them to register. Now this have been made mandatory.

In my view only 1 registration is required which can be confirmed with the jurisdictional officer by seeking official clarification under speed post ack due.

[Chintamani Bhide]

You are right Mr. Hiregange, Even I am of the same opinion. Only one registration is suffice. In fact for one of my client,  I had drafted a letter addressed to Jurisdictional Supdt asking their advise  that whether it is necessary to get one more registration for an assessee who is already registered. In the said letter it was also brought to their notice that ACES have not made any provision for amendment to existing registration by way of adding a category of 'Importer'. The Supdt refused to acknowledge the letter and instead advised the client to get registered. Even if it is agreed that the said letter could have been sent thru registered post ACK, there was no guarantee of reply. The client deals in both the types of goods, imported  as well as local and was not ready to take the risk of buyer of goods being denied the Cenvat just because of his non-registration as an importer, in spite of issuing genuine cenvatable invoice.

It's high time Board comes out with clarification and make it compulsory only for those importers who do not have registration and those who deal only in imported goods.

[Amol shete]

Dear Sir

As per bellow notification department is said for reverse4% additional duty credit which is issued by dealer had not amend/ taken registration as a importer

Dealer has taken/amend their registration after 06 month from notification, now department said reverse the 4% additional duty credit issue before amend date from 01 april2014

The amount of additional duty is going nearby 15 lakh.

 

If anyone have case reference kindly share

Ref. notification no. 08/2014, 09/2014, 10/2015 C.E. (NT)

[Chintamani Bhide]

Mr. Amol Shete,

Before we discuss about case laws I would like to bring to your notice a very recent notification and circular issued which has clarified that those who are already registered as First Stage Dealer or Second Stage Dealer need not get themselves registered as an 'Importer' and vice versa. Thus the Board has corrected its mistake committed in 2014.

please take a print-out each of Notification no. 30/2016 CE(NT) and circular no. 1032/2016-Cx both dated 28.06.16 and try to convince the authorities that passing on the SAD by an FSD or SSD without getting registered as an Importer is only (at the most) a procedural lapse and credit can not be denied on that ground. The fact that once a person is registered with the department as a Dealer he is eligible to pass on any duty under the cover of a valid invoice & he need not get registered separately as an Importer is proved by the issuance of new notification and circular mentioned above.

If following factors are in your favour then there are various case laws which held that substantial benefit or credit can not be denied on the grounds of procedural lapse.

1) Is it a valid invoice/are they valid invoices issued under Rule 11?

2) Does or Do these invoices contain the required details specified in the rules?

3) Is the receipt of material and its use in the production without/beyond doubt or not challenged ?

4) are the dealers registered as FSD or SSD ?

Then put your foot down, convince your management and let the department issue SCN, Then you can contest it.

AI Summary

Importer registration requirement: procedural lapse alone should not deny Cenvat credit where invoices and receipt of goods are valid. Amendments required registration as an Importer in addition to dealer registration, causing dual-registration, ACES amendment gaps, and questions on documents, invoice series, RG23D and returns. Administrative clarification later indicated existing first- or second-stage dealers need not obtain separate importer registration and that absence of importer registration is at most a procedural lapse; valid invoices and undisputed receipt/use of goods support entitlement to Cenvat credit despite the registration formality.