shifting of excise registered premise.

[SARAVANAN RENGACHARY]

we have taken CE registration for a particular building which is on rental. since the place size is not sufficient, we would like hire some other bigger building and continue our excise manufacturing activities from there.

please help us to understand the compliance involved in this....

R. Saravanan.

[KASTURI SETHI]

Central Excise Registration is premises-specific. You will have to inform your jurisdictional Range Officer about the change of premises or any change within 30 days. In terms of Para No.3.3 of Chapter 2 (Registration) of CBEC's Manual of Supplementary Instructions 2005 separate registration is required for each depot, godown etc. In your case registration no. will remain the same but new premises have to be got registered. Already approved plan has to be got cancelled. The following docs are to be submitted again:-

(i) Form A-1 (To be filled again)

(ii) Plan of the factory premises;

(iii) Documents to establish possession of the premises to be registered;

Notification No.35/2001-CE(NT) dated 26.6.2001 as amended vide Notification No.7/2015-CE(NT) dated 1.3.2015 refer.

[SARAVANAN RENGACHARY]

thanks for the reply sir.

[Ganeshan Kalyani]

It enriched my knowledge. Thanks.

[Mahir S]

Sir,

Further, I would like to add that shifting of manufacturing premise require closure of one premise and opening of other. Central excise registration is given to premises and not to person and therefore close of premises require surrender of one registration and opening of other premises require new registration. The other aspect concerned with shifting is maintenance of registers. Central Excise requires maintenance of stock and credit registers which are required to be kept at factory or on premises where they can be easily accessible. If shifting is performed, assessee need to close registers kept at old premises and start new registers on new premises with transfer of entries of material and credit invoices.

In case there is a shifting of existing premises a new central excise registration certificate is to be applied for and the previous one is to be surrendered. It is necessary to do so, especially when there is a change in the Commissionerate or the division or the range.

If there is no change in the Commissionerate or the division, the tax payer can simply intimate its range Assistant Commissioner merely through a letter of change in the address of the premises.

[Mahir S]

Action steps for shifting manufacturing premise :

1. First of all, register new premises if required as per above (i.e. if there is a change in range). This is required because central excise registration is for premises and not for person.

2. Clear all RM & FM from existing factory to new factory.

For RM, all inputs and capital goods will be clearance as such under Rule 10 of CENVAT Credit Rules, 2004 and credit needs to be reversed in the existing CENVAT Credit Register. When inputs and capital goods are received in new premises, new CENVAT register is to be prepared with new central excise number and all credit can be received.

Remember, transfer of CENVAT Credit on inputs and capital goods under Rule 10 can be taken only after satisfaction of Assistant Commissioner hence tax payer needs to intimate Assistant Commissioner through a letter about transfer of premises and CENVAT Credit to transfer in that regard.

There is no need to wait for any action from excise office in this regard, intimation is enough. Please refer below case law:

As far as credit of input services are concerned, there is no need to intimate to Assistant Commissioner or follow any procedure. Reason is services cannot have inventory and credit of service tax (i.e. on input services) does not require any special format of registers to be maintained as per CENVAT Credit Rules, 2004.

For FM, person needs to pay central excise duty first because excise duty is payable on every removal. Once they are received in new premises, the credit of the duty paid can again be taken.

Where invoice for clearance of FM shall be as per Rule 11 of Central Excise Rules, 2002 and Rule 9(1)(a)(i)(II) of CENVAT Credit Rules, 2004 makes an invoice issued by a manufacture for clearance of inputs or capital goods as such eligible for receipt of credit.

3. Surrender your existing central excise registration.

All these steps shall be completed ideally within 30 days because registration is to be received within 30 days of shifting of premises.

[KASTURI SETHI]

I fully agree with Sh.Mahir S. Sir in respect of both replies.

[DR.MARIAPPAN GOVINDARAJAN]

Thanks for detailed analysis of this case.

[SARAVANAN RENGACHARY]

all,

Thank you all for comprehensive analysis.

[KASTURI SETHI]

Such a comprehensive analysis is really appreciable. Kudos to Sh.Mahir S. Sir.

[Ganeshan Kalyani]

All aspects has been cleared by Mahir Sir. Not only the queriest but I too learned from the reply. Thanks.

[Mahir S]

Sirs,

Thanx all for the love and appreciation..

[YAGAY andSUN]

Dear R. Saravanan,

Please be informed that the procedure which is discussed at length would be applicable only when there is change in jurisdiction of C.E. Office.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Sir,

With due respect, I state that whole procedure discussed above in my earlier replies shall be applicable even if the new premise is situated in the same jurisdiction or same range or to be more precise,even if it is falling in the next lane.

Exemption can be available only with reference to new registration, if the new place is falling under the same jurisdiction.

AI Summary

Premises-specific excise registration requires new registration or intimation and proper CENVAT credit transfer on shifting premises. Central excise registration is premises-specific and shifting premises requires intimation within 30 days or, if jurisdiction changes, new registration of the new premises and surrender of the old registration; submit Form A 1, factory plan and proof of possession. Transfer of inputs and capital goods under CENVAT requires reversal in old registers and receipt in new registers under Rule 10 with Assistant Commissioner's satisfaction; input service credit need not be physically transferred. Finished goods removals may require duty payment on removal and subsequent credit receipt at the new premises.