Form of Data Keeping of Excise Related

[PAWAN KUMAR SHARMA]

Sir,

My query is whether we can fulfill the requirements of Excise w.r.t. RG1 register, if we maintain it in soft copy in our database/ERP system.

OR it is mandatory to keep it in hard in the Format prescribed.

[khumansinh D.Zala]

Dear Pawankumar,

The Record can also be kept electronically or in soft copy .In that case print-out (hard copies) should be taken out at the end of each month and kept in bound folders.

Khumansinh D.Zala

Ankleshwar.Gujarat 

[NEERAJ KUMAR, RANCHI]

Yes, you can do that but as suggested by Mr zala you have to keep it in hard copy in bound folders, as it is a statutory document, You can not get any exemption from that.

[Mahir S]

Apart from above, following points may also please be kept in mind, as detailed in Circular No. 499/65/99-CX, dated 10/12/1999 ::-

1) Under the new rule, any person dealing with the Central Excise Department may electronically maintain records or generate returns, invoices or other documents, using computer, which he is required to maintain or generate, as the case may be, under the provisions of the Central Excise Rules, 1944. No specific permission from the Central Excise Department is required for this purpose. Such person is also not required to give any intimation to the Department.

(2) The Range office, however, will record in "Scrutiny Register" or any other record indicating a person's profile, the fact that such person is electronically maintaining records or generating returns, invoices or other documents, using computer.

(3) The records can be kept on any electronic media, such as hard disk of computers, floppies, CDs or tapes and preserved.

(4) The records, returns and documents should be in electronically readable format. This also means that a person who uses computerized system to generate records/books of accounts, returns etc., must keep the electronic record, even when a hard copy is kept.

(5) The printouts (hard copies) of records and documents must be taken out at the end of each month and kept in bound folders, separately for each type of record, return, documents etc.

(6) The person should ensure that proper back-up records are also maintained and preserved so that in the event of destructions due to unavoidable accidents or natural causes, the information can be restored within reasonable period of time. All such records, returns, invoices and other documents (both electronic and hard copy, including back-ups) shall be preserved for a period of five years (counted from the first day of the financial year following the financial year to which a record, return, invoice or document pertain).

(7) It shall be incumbent upon a person (who maintains electronic records, returns, documents etc.) to produce, on demand, the relevant records, returns or documents, in hard copy and/or in electronically readable format, to the Central Excise Officers, or the Audit parties deputed by the Commissioner or the Comptroller and Auditor General of India. Such records, returns, invoices or other documents will be produced pertaining to such period (subject to the period of preservation) as may be requested including the daily entries in electronic format relating to the current month for which the printouts are not taken out.

(8) In case any person is found to be misusing this facility or not providing access to the information or if there are any other cogent reasons, the Assistant Commissioner or the Deputy Commissioner of Central Excise may, after recording such r4asons and after taking into consideration the explanation tendered by the person, regarding the discrepancies, if any, prohibit a person from electronically maintaining or generating any records, returns, invoices or other documents using computer and inform the immediate superior officer.

AI Summary

Electronic Excise Records Allowed: Maintain Monthly Hard Copies, Keep Backups for Five Years, No Special Permission Needed. A query was raised regarding whether excise records, specifically the RG1 register, can be maintained electronically rather than in hard copy. Respondents confirmed that electronic record-keeping is permissible under Central Excise rules, provided that hard copies are printed monthly and kept in bound folders. It was emphasized that electronic records should be in a readable format and preserved with proper backups for five years. The Central Excise Department does not require specific permission for electronic records, but they must be readily producible upon request by authorities. Misuse of this facility may lead to restrictions by the department.