ER1 Return and ER8 Return.

[Samik Chaudhuri]

Hello Sir

Our factory is Food Factory. We submit ER1 on regular basis but our new product is Jhalmuri for which we want to avail Notification no: 1/2011 dt.01/03/2011 and our duty rate will be 2% for which we can not avail Cenvat Credit and we have to submit ER8. I would like to know whether it is possible or not.

Samik Chaudhuri.

[PAWAN KUMAR]

Dear Sir,

You need to submit the ER1 return as per my view. Simply what you have to do is, just maintain the separate inventory of input and Input services pertains to goods on which rate of duty is 2%. File ER-1 return also for the product in question and select the appropriate rate of duty with tariff notification No.01/2011. Fill the details accordingly and file with remark in the remark section.

[Mahir S]

Sir,

ER-8 returns are filed quarterly and that too only by those manufacturers who exclusively avail the benefit of exemption notification no. 1/2011 dated 01.03.2011 and does not manufacture any other excisable goods, other than those specified in the said notification.

In your case, as you are also manufacturing other goods not falling under the above notification, hence you do not fall under the category of manufacturers filing ER-8 returns.

 

AI Summary

Filing classification for excise returns: exclusive exemption manufacturers may file ER 8; mixed producers must file ER 1 with segregated inputs. Manufacturers must file the regular ER 1 return when they produce any excisable goods outside the scope of the exemption notification; they should maintain separate input and input service inventories for goods subject to the concessional duty rate, record the appropriate duty rate and notification reference, and note the treatment in remarks. ER 8 is confined to manufacturers exclusively producing goods under the exemption notification and not producing other excisable goods, making mixed manufacturers ineligible for ER 8.