Applicability of central excise registration

[Brijesh Mathur]

We are manufacturer of garments and Jewellery and are exporting the same, do we need to get registered under Central Excise? Do we require registeration if we are having the status of merchant exporter?

[Ravi Chopra]

If you are engaged yourself only into exporting activities without removing anything into a Domestic Area (Local sale) you are not required to take central excise registration. Manufacture of garments is otherwise exempt from duties of excise. But for jewellery, you can export without payment of duty. Indeed, in case of export also, if the volume of export is major enough, you may be required to submit the proof of export alongwith form H with the excise department. You may also CBEC guidelines under Central Excise - CBEC manual also in this regards.

AI Summary

Central excise registration not required for exclusive exporters; export proof and Form H may nonetheless be required. Where goods are manufactured solely for export and are not removed into the domestic market, central excise registration is not required; garments are generally exempt and jewellery can be exported without payment of duty, but exporters may still need to furnish proof of export and Form H to excise authorities under CBEC guidance.