Central Excise Exemption

[Guest]

Hi All,

I have a new Fabric export startup and my turnover will not cross 50 lakhs for current financial year.

-->Do I need to register in Central Excise?

-->Do I need to pay any excise duty for my goods during clearance, If not required to pay, Please suggest me how to get exempted from central excise duty, any forms or certificate do I need to submit with my other documents.

-->I hope in above scenario I do not need to submit ARE-1 form even if my goods are under excisable duty.

Thanks,

Kings

[Ganeshan Kalyani]

Excise duty is applicable only when the removal of excisable goods is 1.50 crores and more.

[Guest]

Thanks for the information Ganeshan sir.

[KASTURI SETHI]

You need not to get yourself registered with Central Excise till you cross exemption limit of ₹ 1.50 crores. For computing exemption limit of ₹ 1.50 crores, the value of fully exempted goods or nil rate of duty is not to be accounted for . Value of the goods exported is also not to be included while calculating turnover of ₹ 1.50 Crores. When you cross turnover of ₹ 90 lakhs you are required to file declaration with jurisdictional Range Officer of Central Excise. Notification No.36/2001-CE(NT) dated 26.6.2001 as amended vide Notification No. 14/2005-CE(NT) dated 1.3.2005. refers.

[KASTURI SETHI]

Sh.M.Kings,

I have just elaborated the reply of Sh.Ganeshan Kalyani, Sir. I do agree with his reply.

[Ganeshan Kalyani]

Yes the additional details given by Sri Kasturi Sir is of immense use then the turnover turnarounds. Thanks.

[Guest]

Thanks to Kasturi Sir and Ganeshan Sir for a wonderful response.

AI Summary

Central Excise registration threshold: no registration or duty while turnover remains below the statutory exemption limit. Registration with Central Excise is not required until turnover of taxable removals exceeds the exemption threshold of Rs. 1.50 crores; values of fully exempted or nil rated goods and exported goods are excluded when computing turnover. A declaration to the jurisdictional Range Officer becomes necessary upon reaching the intermediate notification threshold. Relevant notifications include Notification No.36/2001-CE(NT) as amended by Notification No.14/2005-CE(NT).