TaxTMI 
TaxTMI 
Central Excise Guide for the new registrants
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....ption in 1983, has always been in the forefront of innovation to serve the Trade and Industry in the best possible manner. I proudly recollect at this juncture that this Commissionerate had brought out the very useful publication of the booklet on Service Tax which subsequently paved the way for Director General of Service Tax to update and bringing a booklet for wider circulation throughout the country. I am sure that this Guide would serve as the ready reckoner for the assessees to comply with the statutory requirements in a hassle free manner. I take this opportunity to congratulate all the Officers and staff of the Coimbatore Commissionerate for successfully carrying out the mission of educating the Tax Payers, which would ultimately result in easier and better tax compliance. Coimbatore, 24-2-2009. T. PREMKUMAR, IRS CHIEF COMMISSIONER Guide for New Registrants of Central Excise First Edition : February, 2009 Supplied Free of cost DISCLAIMER Ø This Guide is published for the purpose of easy understanding of the Central Excise Law and Procedures. For legal purposes, the relevant statutes and the notifications issued thereunder by the Central Gov....
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....artment are conscious of the fact that the Department and Industry need to stand shoulder-to-shoulder in taking the Nation to greater heights. Against this backdrop, the publication of "Guide for new Registrants of Central Excise" gains significance as this booklet would serve as the torch bearer for the new Central Excise assessees. I am confident that this booklet would be of immense help to the assessees to have a fair knowledge about their obligations and responsibilities and enable them to discharge their functions as responsible tax payers. I take this opportunity to express my sincere thanks and appreciation to the Officers of this Commissionerate who have put in their best efforts in publication of this Guide in a short period of time on the occasion of "The Silver Jubilee Year & Central Excise Day Celebrations 2009". I also sincerely thank the Coimbatore District Small Industries Association (CODISSIA) for their support in bringing out this publication. Coimbatore, 24-2-2009. K. ILANGO PRESIDENT Coimbatore District Small Industries Association CODISSIAG.D.NaiduTowers, Huzur Road, Coimbatore - 641 018 MESSAGE Though....
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....nefits 25 12 Excise Audit (EA-2000) 27 13 Search, Seizure, Arrest and prosecution 28 14 Confiscation and Penalty 30 15 Appeal and Revision Application 32 16 Miscellaneous matters 33 II An Overview of the Cenvat Credit Rules, 2004 1 Important provisions relating to Cenvat Credit 34 2 DO's and DON'Ts on Cenvat Credit 45 III Dates to remember 46 IV Provisions relating to Penalty and Interest- At a glance 48 V Frequently Asked Questions (FAQ) 53 Important statutes governing the taxation on Central Excise: (i) Central Excise Act, 1944 (ii) Central Excise Tariff Act, 1985 (iii) Central Excise Rules, 2002 (iv) Central Excise (Appeals) Rules, 2001 (v) Cenvat Credit Rules, 2004 (vi) Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (vii) Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 (viii) Authority for Advance Rulings (Customs, Central Excise and Service Tax) Procedure Regulations, 2005 (ix) Central Excise (Adv....
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....ntainers (including the declaration or alteration of retail sale price on it) or Ø adoption of any other treatment on the goods to render the product marketable to the consumer. 2.REGISTRATION 2.1 Persons requiring registration: The categories of persons requiring registration under Central Excise in terms of Rule 9 are as follows: (i) Every manufacturer of dutiable excisable goods. (ii) First and second stage dealers (including manufacturer's depots and importers) desiring to pass on the Cenvat credit to the buyers by issuing Cenvatable invoices. (iii) Persons holding warehouses for storing non-duty paid goods. (iv) Persons who obtain excisable goods for availing end-use based exemption. (v) Exporter-manufacturers under rebate/bond procedure; (vi) Export Oriented Units and EPZ units. 2.2 Exemption from registration: The following categories of persons are exempt from registration as per Notification No. 36/2001 CE (NT) dated 26-6-2001 issued under Rule 9. (i) Manufacturers of goods which are chargeable to nil rate of duty or fully exempted by any Notification subject to the condition that they file a Declaration with the Department. However,....
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.... The rates of Central Excise duty are specified in the First Schedule to the Central Excise Tariff Act, 1985. The First Schedule is commonly referred to as the Central Excise Tariff, which contains 96 Chapters grouped under 20 distinct Sections. The rates of Special Excise duty are specified in the 2^nd Schedule to the Central Excise Tariff Act, 1985. 3.2 Classification of the goods: In order to determine the applicable rate of duty in respect of a particular item, the positioning of that item under a particular head or sub-heading of Central Excise Tariff is essential. The positioning of an item in the appropriate heading / sub-heading is classification. The classification of an item is generally decided in accordance with the commercial or trade parlance. However, a deviation from this principle is made when the trade meaning or commercial nomenclature does not fit in the scheme of the statute. For determination of the rate of duty of a manufactured product, the assessee has to primarily ascertain the relevant Tariff Heading or sub-heading under which the said product is covered. Against each Tariff sub-heading, the rates of Excise duty are specified which are com....
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....e (MRP) of the product in terms of the provisions of the Standards of Weights and Measures Act, 1976, the assessment of the goods as notified by the Government under Section 4A of the Act shall be done on the basis of such MRP value, subject to admissibility of abatement, if any, as may be notified. The goods, which are liable to MRP assessment and the extent of abatement admissible in respect of those goods, are detailed in the Notification 49/2008-C.E. (N.T.) dated 24-12-2008 issued under Section 4A of the Act. Tariff value:In respect of certain specified goods, the assessment shall be based on the tariff value prescribed for such goods by the Central Government under Section 3(2) of the Act. For details about the specified goods and the prescription of Tariff value, the relevant Notifications issued under Section 3(2) of the Act may be referred to. 4. EXEMPTION FROM PAYMENT OF DUTY The Central Government is empowered to grant exemption, full or partial, from payment of duty either generally by issue of a Notification or in a specific case of an exceptional nature by means of a special order under Section 5A of the Act. The exemption Notifications are issued in respect o....
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....removal, mode of transport and vehicle registration number, rate of duty, quantity and value of the goods and the duty payable thereon. The serial number of the invoice can be given at the time of printing or by using franking machine. Hand written serial number is not acceptable. In case of computer generated invoice, the serial number is allowed to be generated and printed by the computer at the time of preparation of invoice, if the computer is capable of generating the number automatically and without the possibility of assignment of the same number more than once. The invoice shall be prepared in triplicate in the following manner, namely:- Ø the original copy is to be marked as ORIGINAL FOR BUYER; Ø the duplicate copy is to be marked as DUPLICATE FOR TRANSPORTER; Ø the triplicate copy is to be marked as TRIPLICATE FOR ASSESSEE. The assessee may make more than three copies for his other requirements. But the extra copies shall be prominently marked with the words: "NOT FOR CENVAT PURPOSE." 5.2 Use of more than one set of invoices: As per Rule 11, only one set of invoice book shall be in use at a time unless otherwise allowed by the Deputy/Assistant C....
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....(6^th day in case of e-payment) of the succeeding month. The duty for the month of March is, however, to be paid by 31^st March itself. In case of a manufacturer availing exemption based on the value of clearances during a financial year (SSI exemption), the duty for a month is liable to be discharged by 15^th day (16^th day in case of e-payment) of the succeeding month. The assessees may, at their option, make payment of duty consignment-wise. Once the assessee has deposited a cheque in bank within the due date and the same is honoured or pays in cash/draft and the bank gives receipt stamp on the GAR-7 Challan, the same shall be treated as credited to the account of the Central Government. 6.2 Electronic Payment: E-payment is a hassle-free mode of payment besides the conventional method of payment offered by the banks under specific security norms of the Reserve Bank of India. This scheme facilitates anytime, anywhere payment enabling instant generation of cyber receipt once the transaction is complete. It provides the convenience of making online payment of Central Excise duty through Bank's Internet banking service. 6.3 Procedure for Payment: ¨ The customer shoul....
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....DS 7.1 Maintenance of Accounts: As a measure of simplification, the private records maintained by the assessees are accepted by the Department for the purpose of Central Excise matters also so as to facilitate them to have a single accounting system. The assessees are required to maintain records on all important aspects such as receipt, purchase, manufacture, storage, sales or delivery of the goods including inputs and capital goods, Daily Stock Account as per Rule 10 of the Central Excise Rules, 2002 and Cenvat Account as per Rule 9 of the Cenvat Credit Rules, 2004. The records, which are relevant for Central Excise, shall be authenticated by the assessee on the first and last page. These records shall be preserved for a period of five years immediately after the financial year to which such records pertain. In terms of Rule 22(2), the assessee is required to furnish to the Range Officer, a list in duplicate, of all the records prepared or maintained by him for accounting of transactions with regard to receipt, purchase, manufacture, storage, sales or delivery of the goods including inputs and capital goods. The assessee shall, on demand make the records availab....
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.....2 Electronic filing of Returns: E-filing facility is available for the assessee enabling him to file the returns online in a hassle-free manner. The registered assessees, who are desirous of availing the facility of e-filing of the return, may make an Application in this regard to their jurisdictional AC/DC indicating their e-mail address and postal address for communication to which the user log-in-ID, Password and the location code are to be intimated. After verification of the particulars, Systems Manager of the Commissionerate Hqrs. office will communicate the initial password to the assessee. The 15 digit R.C. Number will serve as assessee's user-id. The assessee can thereafter access the e-filing website: http:// exciseandservicetax.nic.in through internet and e-file the return. 8.3 Advantages of E-filing: The Advantages of E-filing of Returns are as follows: Ø Facility is available 24 x 7 Ø Anytime, anywhere filing Ø No need to visit the Central Excise office 8.4 Format of the Returns prescribed: Return Annexure of CBEC's Supplementary Instructions/ Notification ER-1 Annexure 12 ER-2 Annexure 13 ER-3 Annexure 13A ER-4....
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.... Assistant/Deputy Commissioner in duplicate within one year from the relevant date. The refund claim should be complete in all respects containing the important details such as grounds for filing the refund claim, proof for payment of the duty amount concerned, worksheet for quantification of the refund amount and supported by relevant documents. The relevant date in respect of the manufacturer-assessee is generally the date of payment of duty. There are various relevant dates prescribed in Section 11B for export rebate, for goods returned for repairs etc. In case where the duty was paid provisionally, the relevant date shall be the date of adjustment of duty after the finalization of the assessment. In the case of goods exempted by a special order under Section 5A (2) of the Act, the time limit of one year will be computed from the date of issue of such order. No refund/rebate claim will be withheld on the ground that an appeal has been filed against the order giving relief, unless stay order has been obtained to that effect (CBEC Circular No. 398/31/98-CX dated 2-6-1998). 10.2 Refund of pre-deposit: The time limit of one year is not applicable where the amount was ....
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....he rate of 6% per annum on the refund amount sanctioned. 11. EXPORT PROCEDURES AND BENEFITS In principle, exports should be relieved of all types of duties and taxes. With a view to facilitate the manufacturers of India to effectively compete in the International market, various export benefit schemes have been prescribed under the Central Excise Law. A few important schemes providing benefit for the Exports and the related procedures are as discussed below: 11.1 Rebate of Excise duty paid on the export goods and the materials used in the manufacture of such goods: Where any excisable goods are exported on payment of duty, the duty paid on such export goods and the material used in the manufacture of such export goods would be granted as Rebate under Rule 18. The conditions and procedures for grant of rebate of duty are prescribed in the Notifications issued under Rule 18 read with Chapter 8 of CBEC's Supplementary Instructions. 11.2 Export of goods without payment of duty under Bond: The excisable goods can be exported without payment of duty under bond from the factory or warehouse or any other premises as may be approved by the Commissioner in terms of Rule ....
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....ch refund are prescribed in Notification No. 5/2006 CE (NT) dated 14-3-2006 as amended, issued under Rule 5 of the Cenvat Credit Rules, 2004. 11.5 Simplified Export procedure for exempted Units: Small scale Units, which are availing full exemption from payment of duty under a Notification based on the value of clearances, are exempted from filing the export document in ARE-1 and execution of Bond so long they remain within the threshold limit of full exemption. Simplified export procedure is prescribed in Chapter 7 of CBEC's Supplementary Instructions. 12. EXCISE AUDIT 2000 12.1 The concept of EA 2000: EA 2000 is a modern, transparent and interactive method of Audit wherein the Auditor proceeds to conduct the audit after becoming fully conversant with the business of the assessee. It is a systematic form of audit as the basic information about the assessee are gathered and analyzed in depth before conducting the audit. The Audit team would visit the premises of the assessee for conduct of the Audit after sending the intimation to that effect well in advance so as to enable the assessee to keep the records ready for the audit. The requirement of records would also ....
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....sions, an officer not below the rank of the Inspector of Central Excise, with the written permission of the AC/DC, can search at any time, any premises or conveyance where he has reason to believe that excisable goods are manufactured, stored or carried in contravention of the provisions of the Act or Rules. There is no requirement for search warrant for conducting search of a registered premises or for stopping and searching of any conveyance in transit. In respect of other cases, search warrants are required to be issued by an Officer not below the rank of AC/DC for authorizing the search. The search would be carried out in the presence of two independent witnesses. The proceedings of the search and seizure would be recorded in the Mahazar (also called as the Panchnama) drawn by the two independent witnesses and the seized materials would be listed out therein. A copy of the Mahazar would be supplied to the person-in-charge of the searched premises or seized goods . If the Central Excise Officer has reason to believe that any goods, which are liable to Excise duty but no duty has been paid thereon or the said goods were removed with the intent of evading the duty payable th....
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....e firm, who is responsible for the conduct of the business of the company/firm and is found guilty of the offences under the Central Excise Act/ Rules. 14. CONFISCATION AND PENALTY 14.1 Legal provisions relating to imposition of Penalty and confiscation: The statutory provisions relating to imposition of Penalty and confiscation are as indicated below: Section 11AC of the Act: Mandatory penalty equal to the duty not levied or paid or short paid or erroneously refunded is liable to be imposed, if the same is by reason of fraud or suppression of facts or mis-statement or contravention of the provisions of the Act /Rules with intent to evade payment of duty. However, in the event of payment of the duty and interest within 30 days of the communication of the order issued under Section 11A (2) of the Act, the penalty shall be 25% of the duty subject to the condition that he reduced penalty is also paid within the said period of 30 days. Rule 25 of the Central Excise Rules, 2002: Penalty is liable to be imposed on any producer, manufacturer, registered person of a warehouse or a registered dealer not exceeding the duty on the excisable goods in respect of which any o....
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....isstatement or contravention of the provisions of the Act /Rules with intent to evade payment of duty, the manufacturer shall be liable to penalty equal to the duty involved in terms of the provisions of Section 11 AC of the Act. Rule 15 A of the Cenvat Credit Rules, 2004: A general penalty is liable to be imposed which may extend to Rs. 5000/- for contravention of the Rules. This penalty is attracted when no specific penalty is provided for under the Cenvat Credit Rules, 2004. 15. APPEAL AND REVISION APPLICATION The assessee as well as the Department is entitled to appellate remedies against the orders passed under the Central Excise Act and Rules framed thereunder. As per the provisions of Section 35 read with Sections 35B, 35G, 35H and 35L of the Act, any person aggrieved by the order passed by the Central Excise Officer, can file an Appeal as indicated below: Order passed by Appellate Authority All officers upto Additional Commissioner Commissioner (Appeals) Commissioner or Commissioner (Appeals) CESTAT except in cases where the order relates to: = case of loss of goods, where the loss occurs in transit from a factory to a....
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....nature of factory representative with date Remarks (6) (7) (8) (9) (10) Authority:Boards Circular No. 3/90 CX.6 (F. No. 208/148/89 CX.6) dated 24-1-1990, Cir. No. 19/92 CX.6 (F. No. 213/28/92 CX.6) dated 18-12-1992 and F. No. 201/ 07/2006 CX6 dated 31-3-2006. PART- II: AN OVERVIEW OF CENVAT CREDIT RULES, 2004 1. IMPORTANT PROVISIONS RELATING TO CENVAT CREDIT 1. The concept of Cenvat credit: Excise duty is paid on the manufactured goods. The final product of a manufacturer is used by another person as input or capital goods or consumable for production/manufacture of his goods. When such duty paid goods are used by another manufacturer, the duty suffered on the said goods is required to be offset, as otherwise, it would result in payment of duty on the duty already paid. In order to overcome the cascading effect as a result of duty on duty, Cenvat credit scheme has been introduced as per which the value addition of the goods alone is subjected to duty at every stage of manufacture. The conditions and procedures for availment of Cenvat credit are prescribed under the Cenvat Credit Rules, 2004 (hereinafter referred to as....
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....rier agency, Tour operator, Rent-a-cab operator, Cargo handling Service, Goods transport Agency, Outdoor Caterer, Pandal or Shamiyana Contractor). 2.3 Input service (defined under Rule 2 (l) of the CCR): Input Service is any Service - (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal; 3. Specified duties on which Cenvat credit can be taken: The specified duties on which Ce....
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....envat credit can be utilized for the following purposes: Ø For payment of Excise duty on any final products (including waste and scrap); or Ø For payment of duty on inputs or capital goods removed as such or inputs removed after being partially processed, under invoice; or Ø For payment of Service Tax on any output service. 6. Removal of Credit availed inputs/capital goods (Rule 3(5) of the CCR): When inputs or capital goods on which Cenvat credit has been taken are removed as such from the factory or premises of the provider of output service, the manufacturer of the final products or provider of output service as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or Capital goods. However, such payment is not required where the inputs or capital goods are removed outside the premises of the provider of output service for providing the output service. If the Cenvat credit availed Capital goods are removed after being used, an amount equal to the Cenvat credit taken on the said capital goods reduced by 2.5% for each quarter of a year or part thereof from the date of taking Cenvat credit is to be paid. If the capital go....
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....rovider. Cenvat Credit in respect of input service would be allowed on or after the date payment is made for the value of input service and the Service Tax as indicated in the invoice/bill/Challan. * Credit is allowed even if capital goods are acquired on lease, hire purchase or loan agreement from a financing company. * Credit is not allowed, if depreciation is claimed on the amount of duty paid under Section 32 of the Income Tax Act. * Cenvat credit is allowed in respect of jigs , fixtures, moulds and dies sent by a manufacturer of final products to a job worker for the production of goods on his behalf and according to his specifications. * The Credit of duty paid on the capital goods (including capital goods comprised in project imports) would be allowed subject to the following conditions: (a) Upto 50% of the credit would be allowed in the same financial year of receipt of the goods. However, full credit will be allowed in the same year, if the capital goods are cleared as such in the same year. (b) Balance credit would be allowed in any subsequent financial year provided the Capital goods are still in possession and use of the manufacturer / provider of outp....
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....uties of Customs and the Additional duty (CVD) when imported into India and supplied against International competitive bidding in terms of Notification No. 6/2006-C.E dated 1.3.2006. 10. Movement of inputs/capital goods (Rule 5(5)(a) of the CCR): Credit is allowed, even if any of the inputs or capital goods as such (or input after being partially processed) are sent to job worker for certain specified purposes. The goods are, however, to be received back in the factory within 180 days; otherwise, an amount equivalent to the Cenvat credit on such inputs or capital goods is to be reversed. However, such credit can be taken again when they are received back in the factory subsequently. The specified purposes are as follows: • Further processing; • Testing; • Repair; • Reconditioning or for the manufacture of intermediate goods necessary for the manufacture of final products; or • Any other purpose. Cenvat credit is allowed for jigs, fixtures, moulds and dies sent to job worker for production of goods on behalf of the Principal manufacturer according to his specifications. 11. Storage of inputs outside the factory of the manufacturer (Rule 8 of t....
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.... Service Tax; (f) Invoice/bill/Challan issued by a provider of input service; (g) Invoice/bill/challan issued by an input service distributor on or after 10-9-2004. 15. Maintenance of Records (Rule 9 of the CCR): The manufacturer/Output service provider/Input service distributor shall maintain proper records for receipt, consumption and inventory of inputs and capital goods recording value, duty paid, and the person from whom inputs or capital goods purchased. The manufacturer shall submit a monthly return (Quarterly Return by SSI Units) in terms of Rule 9 (7) of the CCR. 16. Burden of proof for admissibility of Cenvat credit (Rule 9(5) of the CCR): The burden of proof for admissibility of Cenvat credit lies on the manufacturer/service provider availing the Cenvat credit. Therefore, all reasonable steps should be taken to ensure the genuineness of the document based on which credit is taken and payment of duties/tax as specified in the said documents. 17. Transfer of credit (Rule 10 of the CCR): When the manufacturer shifts his factory to another site or transfers the factory on account of change in ownership or on account of sale, merger, amalgamation, leas....
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....ervice providers governed by the Finance Act, 1994. The statutory provisions are mostly similar for both the categories; The main focus in this Guide is with reference to the statuatory provisions relating to the Central Excise law intended for the manfacturers. (b) Cenvat credit can be availed only when all the particulars as prescribed under the CER or Service Tax Rules, 1994 are contained in the said documents. (c) The jurisdictional Asst. / Deputy Commissioner is empowered to condone technical lapses or procedural infringements on the part of the assessee for availment of Cenvat credit so long as the duty paid nature of the input/capital goods/ input service are beyond doubt. (d) All reasonable steps should be taken to ensure that duty/tax as indicated in the documents has been paid on the inputs or capital goods or input service on which credit is taken. (e) Credit is not admissible, when the additional amount of duty became recoverable on account of non-levy or short-levy by reason of fraud, collusion or wilful mis-statement or suppression of facts or contravention of the statutory provisions with intent to evade payment of duty. 2. DOs AND DON'Ts ON CENV....
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....). Assessees availing exemption based on the value of clearance (SSI units). 31st of March (For March) = Single Copy of GAR-7 Challan is to be used for payment of duty. = For E-payment, the due dates are 6th and 16th, instead of 5th and 15^th respectively. (ii) Filing of Returns: Due Date Obligation Category of Assessee 10th of the ER -1 Return (monthly return in month duplicate) furnishing the particulars of production & removal of goods and particulars of Cenvat credit for the previous month - Rule 12 of the CER & Rule 9(7) of the CCR. All assesses (Other than SSI units and the assessees manufacturing processed yarn and unprocessed fabrics falling under Chapter 50 to 55, 58 or 60 of the Tariff). 20th of the month following the particular quarter ER-3 Return (Quarterly Return) furnishing the particulars of production and removal of goods and particulars of Cenvat credit for the previous quarter - Rule 12 of the CER & Rule 9(7) of the CCR. SSIs, assessees availing area-based exemption and assessees manufacturing processed yarn and unprocessed fabrics fa....
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....provisions relating to Cenvat credit; (viii) Failure to give required information or supply of false information; (ix) attempt to commit, or abet the commission of any of the offences mentioned above; (a) If duty involved exceeds Rs.1 lakh: upto 7 years & Fine Imprisonment for a minimum period of 6 months. Imprisonment for lesser period is permissible, if the Court records special and adequate reasons for such reduction. (b) If duty involved is less than Rs.1 lakh: Imprisonment upto 3 years or fine or both. Second/subsequent conviction under this Section : Imprisonment upto 7 years with fine. Imprisonment for a minimum period of 6 months. Imprisonment for lesser period is permissible, if Court records special and adequate reasons. Sec. 9AA Offences by Companies The person in charge and responsible for the conduct of the business of the company shall also be liable for the offence. Applicable provisions as in the case of individuals Sec. 11 A Non-payment/Short payment/ Non-levy/ Short levy/ eronoeous refund penalty equivalent to 25%, if duty is paid with....
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....est @ 13% from first day after due date till payment of dues. Default for more than 30 days Consignment wise payment of duty without utilization of the Cenvat credit till payment of dues with interest. Rule 25 Removal of goods in contravention of Central Excise Rules/ Notifications issued thereunder; Non- accountal of excisable goods; Manufacture without applying for Registration Certificate; Contravention of any provision under Central Excise Rules/ Notifications issued thereunder such rules. Confiscation of goods and Penalty upto duty amount or Rs.2000 whichever is greater. Rule 26 Possession, transport, deposit, keeping, concealing, selling or purchasing of goods liable for confiscation. Penalty upto duty amount or Rs.2000/- whichever is greater. Rule 26 Issue of Excise invoice without delivery of goods or abetment in making such invoice or issue of such document by which ineligible benefit like Cenvat credit is likely to be taken or has been taken. Penalty upto such ineligible benefit or Rs.5000/- whichever is greater. Rule 27 Breach of rules for which no penalty is ....
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....ing to issue Cenvatable invoices; (iii) Persons holding bonded warehouses for storing non-duty paid goods; (iv) persons who obtain excisable goods for availing end-use based exemption. 4. Is there any category of persons who are exempt from obtaining registration? Yes. Subject to specified conditions, the following categories of persons need not obtain Central Excise registration. (i) Manufacturers of goods which are chargeable to nil rate of duty or are fully exempt; (ii) SSI manufacturers having annual turnover of below Rs.90 lakhs. Once their turnover exceeds Rs.90 lakhs, they should give the prescribed declaration to the Jurisdictional AC/DC; (iii) Job-workers of ready-made garments, if the principal manufacturer undertakes to discharge the duty liability; (iv) Approved/ licensed units in Export Processing Zones, Special Economic Zones and 100% Export Oriented Units. 5. What is the procedure for obtaining registration? Apply to the nearest Central Excise Division Office in Form A.1 along with a self attested copy of the PAN issued by the Income Tax Department. After verification, Registration certificate in Form RC is normally issued immediately, as far as possible.....
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.... upto Rs.5000/- 12. How and when Central Excise duty is to be paid? An SSI unit has to pay duty on monthly basis by 15^th of the succeeding month (16^th in case of e-payment). Other units are required to pay duty on monthly basis within 5 days (6 days in case of e-payment) of completion of the month in question. The assessee is required to deposit the amount of duty payable in the nominated bank along with the prescribed GAR-7 Challan and on this amount being credited in the government account, he can take credit in the PLA register. Such credited amount can then be utilized for discharging the duty on goods cleared from his factory. However, for the month of March, the duty has to be paid by 31^st March, both for SSI and Non SSI units. Further, in case of default in payment of duty, the interest is leviable @ 13% starting from the date on which the duty was required to be paid till the date of payment (subject to the interest not exceeding the duty amount). 13. What is the facility for mitigating the cascading effect of duty? What is CENVAT? In order to mitigate the cascading effect as a result of duty on duty, CENVAT Credit scheme is introduced under the CENVAT Credit....
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....tional Deputy/ Assistant Commissioner. 18. What is CT-3 certificate and who issues it? CT-3 certificate is required to be obtained from the Range Superintendent of Central Excise on the basis of which a 100% EOU can procure duty free indigenous goods. 19. What is the periodical return to be filed by a 100% EOU and when? The 100% EOU is required to file monthly return in the prescribed form. 20. Is it permissible for 100% EOU to sell the goods in local market? Yes. Under certain circumstances, 100% EOUs are permitted by the Development Commissioner to sell the goods in the local market on payment of appropriate duty. (Based on the material downloaded from CBEC website: www.cbec.gov.in) MILESTONES OF THE DEPARTMENT In tune with the liberalization policy of the Government, the Department undertakes various innovative initiatives periodically to serve the Nation as well as the Trade and General Public. The significant milestones of the Department in the journey towards Trade facilitation are as follows: 1969: The "Physical Control System" was replaced by "Self Removal Procedure" signalling the change of attitude of the Department towards the assessees. ....