Clarification on ER-3 and SSI Exemption

[Moksh Ari]

I am submitting return for manufacturer (Proprietor) doing galvanizing activity who has charged excise duty on all goods received under 4(5)a challan, without avaliaing SSI exemption upto 150 lacks. His current turnover is approximately ₹ 65 lacs, however excise duty is charged on jobwork done for total billing upto ₹ 48 lacs for galvanizing process chapter heading:79011200 and for balance he has manufactured Galvanized plant under chapter heading: 73090010, and charged excise duty accordingly.

Since he has not availed benefit under SSI exemption , do i need to file ER-1 or shall i continue with ER-3.

if required to continue with ER-3, then on page 2 we have to show 'non- tariff notification used or Clearance', then for galvanizing activity what will the said notification???.

Please guide...

Rgds

Moksh

[Rajagopalan Ranganathan]

Sir,

Facility of quarterly payment of excise duty and filing of quarterly return is available to SSI for the whole financial year even if the assessee is paying excise duty at full rate vide Explanation 2 to 2nd proviso to rule 8 (1) and and Explanation 2 to 2nd proviso to rule 12 (1) of Central Excise Rules, 2002.

AI Summary

SSI quarterly filing entitlement remains even when excise duty is paid at full rate, allowing continued quarterly returns.
An assessee qualifying as a Small Scale Industry may use the facility of quarterly payment of excise duty and filing of quarterly returns for the whole financial year even if duty is paid at the full rate; this entitlement applies despite not availing SSI exemption and requires disclosure of the applicable duty treatment and any relevant non tariff notification or clearance entries on the quarterly return.