EXCISE RETURN FOR JEWELLERS

[manoj lalwani]

Sir

My Client is jewelers and his annual turnover for year ending on 31.3.2016 is below 12cr. Since his turnover for year ending on 31.3.2016 is above 6 cr he has obtained registration. I wish to know :

1. Form No in which he should file Excise Return for 2016-17

2. Since his turnover has not exceeded 6 Cr in 1st Quarter of 2016-17, how the return should be filed since he is exempted from payment of excise duty up to 6 Cr

[KASTURI SETHI]

1. Form ER-3 Return Quarterly

2. In ER-3 return for quarter ending 30.6.16, against Serial No.3, show the value of goods cleared . Being exempted, no Central Excise duty is to be paid. NIL duty paid return is to be filed. SSI exemption notification no. is to be mentioned against Col. no.8 at serial no.3.

[manoj lalwani]

Thanx a lot sir. I wish to know in which case ER 8 is applicable

[KASTURI SETHI]

ER-8 is applicable for those manufacturers who pay duty @ 1% instead of fully rate of duty for specified goods and do not avail Cenvat Credit.(Rule 12 of CE Rules,2002 refers.)

[Ganeshan Kalyani]

Sri Kasturi Sir, thanks for your reply. It enriched my knowledge. Thanks.

AI Summary

Excise return filing: registered jewellers must use ER 3 quarterly and submit a nil duty return when covered by small scale exemption.
Registered jewellers file quarterly excise returns in ER 3; for quarters where clearances fall within the small scale exemption, ER 3 must show value of goods cleared and be filed as a nil duty return with the applicable SSI exemption notification cited. ER 8 applies instead to manufacturers who opt into the separate composition arrangement and forgo Cenvat credit, not to exempted nil duty filers.