SURRENDER EXCISE LICENCE

[Guest]

Greetings to the community!!

I am a manufacturer and have suffered huge losses. I want to surrender my license as i want to quit manufacturing. I have not paid my dues that is duty received on on raising invoices. Is there any settlement system. My dues are around 10 Lakhs. I am not in state to repay. Is there any possibility that I can surrender without depositing my dues. Is there any settlement procedure. What will happen if I start new company in service sector?? Please guide...

request for honest answers

[Arun Kumar Singh]

After the clear all due registration will be surrender. You need to reverse all cenvat credit available in the balance.

[Guest]

Thanks for the reply Arun ji.

Please bring light to the consequences if I dont pay dues and start a new company in some other state.

thanks

[Mahir S]

Non payment of service tax will lead to imposition of interest and penalty, thus increasing your total liability. Surrender of registration shall not be accepted till all the payments are made to the department.

Department may grant you the facility to make payment of tax and interest in installment, if your case is genuine and merits consideration.

However, if your are planning to start a new company, then u surely are having funds, so better clear the pending duty payment before starting the new business.

Department may start recovery proceedings if the duty amount is not deposited/paid.

[YAGAY andSUN]

Dear Pankaj,

Not paying statutory dues comes under the category of economic offence and without knocking it off R.C. cannot be surrendered. Even if you opt other State to start a new venture or business, then, on the basis of PAN based registration, you will be denied for RC and recovery proceeding would be started such as attachment of Bank Account/property in this regard.

So, clear any statutory dues (Customs, Central Excise, VAT/CST/Entry Tax/ Income Tax, Service Tax, ESI, PF etc.) immediately to start a new venture in other State.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Manufacturer Must Settle 10 Lakh Dues Before Surrendering Excise License; New Business May Face PAN Registration Issues A manufacturer facing significant financial losses seeks to surrender their excise license without paying outstanding dues of approximately 10 Lakhs. They inquire about settlement options and the implications of starting a new company in the service sector. Respondents advise that surrendering the license requires clearing all dues and reversing cenvat credit. Non-payment may result in interest, penalties, and recovery proceedings, including potential bank account or property attachment. Starting a new business in another state without settling dues may be hindered by PAN-based registration checks. It is recommended to clear all statutory dues before proceeding with new ventures.