Excise

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2015 SUPPOSE ONE DEALER ENGAGED IN TRADING OF GOODS. HIS TURNOVER IS 1 CRORE. IN THE SAME YEAR HE STARTED MANUFACTURING OF EXCISABLE GOODS. TOTAL TURNOVER OF HIS MANUFACTURING IS 80 LACS. IS THAT DEALER IS APPLICABLE FOR REGISTRATION IN EXCISE RULE.PLEASE CONFIRM ME TO THE EARLIEST.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 January 2015 Registration – (1) Every person, who produces, manufactures, carries on trade, holds private store-room or warehouse or otherwise uses excisable goods, shall get registered;

Provided that a registration obtained under rule 174 of the Central Excise Rules, 1944 or rule 9 of the Central Excise (No.2) Rules, 2001 shall be deemed to be as valid as the registration made under this sub-rule for the purpose of these rules.

(2) The Board may by notification and subject to such conditions or limitations as may be specified in such notification, specify person or class of persons who may not require such registration.

(3)The registration under sub-rule (1) shall be subject to such conditions, safeguards and procedure as may be specified by notification by the Board.

3 . Persons Requiring Registration:

3.1 In accordance with Rule 9 of the said Rules the following category of persons are required to register with jurisdictional Central Excise Officer in the Divisional Office having jurisdiction over his place of business/factory:

Every manufacturer of excisable goods (including Central/State Government undertakings or undertakings owned or controlled by autonomous corporations) on which excise duty is leviable.
First and second stage dealers (including manufacturer’s depots and importers) desiring to issue Cenvatable invoices.
Persons holding warehouses for storing non-duty paid goods.
Persons who obtain excisable goods for availing end use based exemption.
Exporter-manufacturers under rebate/bond procedure; and Export Oriented Units, which have interaction with the domestic economy (through DTA sales or procurement of duty free inputs).
Persons who get yarns, fabrics, readymade garments etc. manufactured on job work under Rule 12B. (not required now)

3.2 Separate registration is required in respect of separate premises except in cases where two or more premises are actually part of the same factory (where processes are interlinked), but are segregated by public road, canal or railway-line. The fact that the two premises are part of the same factory will be decided by the Commissioner of Central Excise based on factors, such as:

Interlinked process product manufactured/produced in one premises are substantially used in other premises for manufacture of final products.
Large number of raw materials are common and received /proposed to be received commonly for both /all the premises.
Common electricity supplies.
There is common Labour/ Work Force
Common administration/work management. Common sales tax registration and assessment Common Income Tax assessment
Any other factor as may be indicative of inter-linkage of the manufacturing processes.
This is not an exhaustive list of indicators nor is each indicator necessary in each case. The Commissioner has to decide the issue case by case.

3.3 Separate Registration is required for each depot, godown etc. However, in the case of liquid and gaseous products, availability of godown before grant of registration should not be insisted upon.

3.4 Registration Certificate may be granted to minors provided they have legal guardians, i.e. natural guardians or guardians appointed by the Court, as the case may be, to conduct business on their behalf.

4. Exemption from Registration:

4.1 The Central Board of Excise and Customs (CBEC), by Notification No.36/2001-CE (NT) dated 26.6.2001 as amended has exempted specified categories of persons /premises from obtaining registration. The exemption applies to the following:

i) Person who manufacture the excisable goods, which are chargeable to nil rate of excise duty or are fully exempt from duty by a notification.

ii) SSI manufacturers having annual turn over below the specified exemption limit. However, such units will be required to give a declaration (Annexure-1) once the value of their clearances reaches the specified limit which is Rs. 40 Lakhs presently.

iii) In respect of ready-made garments, the job-worker need not get registered if the principal manufacturer undertakes to discharge the duty liability.

iv) Persons manufacturing excisable goods by following the warehousing procedure under the Customs Act, 1962 subject to the following conditions: -

(a) The said excisable goods and any intermediary or by-products including the waste and refuse arising during the process of manufacture of the said goods under the Customs Bond are either destroyed or exported out of the country to the satisfaction of the Assistant Commissioner of Customs or the Deputy Commissioner of Customs, in-charge of the Customs Bonded Warehouse;

(b) The manufacturer shall file a declaration in the specified form annexed in triplicate for claiming exemption under this notification;

(c) no drawback or rebate of duty of excise paid on the raw materials or components used in the manufacture of the said goods, shall be admissible.

v) The person who carries on wholesale trade or deals in excisable goods (except first and second stage dealer, as defined in Cenvat Credit Rules, 2002 and the depots of a registered manufacturer);

vi) A Hundred per cent Export Oriented Undertaking, licensed or appointed, as the case may be, under the provisions of the Customs Act, 1962 other than having dealings with DTA.

vii) Persons who use excisable goods for any purpose other than for processing or manufacture of goods availing benefit of concessional duty exemption notification.

4.2 The Drugs and Cosmetics Rule, 1945 recognises the concept of loan licence in the manufacture of P or P medicines. As a result, the system of accepting the said concept is still prevalent under excise law. In such cases the procedure prescribed under Notification No.36/2001-CE(NT) dated 26/6/2001 has to be followed. The principal manufacturer who has`undertaken to comply with the procedural formalities will have to maintain separate accounts in respect of goods manufactured on his own account and goods manufactured on behalf of the loan licensee. However, the principal manufacturer has to aggregate the clearances made by him together with clearances made on behalf of the loan licensees with regard to eligibility as well as exemption limit. In other words, the clearances made on behalf of the loan licensee have to be clubbed with that of the principal manufacturer (by the manufacturer from one or more factories and from the factory by one or more manufacturers).

5. Board has prescribed a new procedure from 1.10.2002. The salient features of the new Registration process are detailed as follows: –

5.1 Important changes in the Registration procedure

i) The new Registration process has been implemented in respect of all new registrants with effect from 1.10 2002

ii) Application for Registration should be submitted to the jurisdictional Divisional Office and Registration shall be done at Divisions it ,read of Ranges.

iii) Registration Certificate shall be issued under the signature of the Divisional Officer, i.e. Deputy/Assistant Commissioner.

iv) Registration Process would be carried out on computer through system called System for Allotment of Central Excise Registration (SACER) by feeding the d493/59/99-CX.6 into Central Server accessing http.//sermon.nic.in/sacer.html which shall automatically generate 15-digit PAN based Registration Number or a Temporary Registration Number in case registrant does not have PAN.

v) Registration of EOUs which have inter-linkage with domestic economy through procurement and/or sale of goods will be done on identical pattern as in case of other Central Excise assesses with few changes. This has been introduced with effect from 1.10.2002 vide Notification No.31/2002-C.E. (N.T.), dated 17.9.2002, which amends Notification No.36/2001-C.E. (N.T.) dated 26.6.2001. Other EOUs which have no inter-linkage with the domestic tariff area shall continue to be treated as deemed registered and need not obtain the 15 digit PAN-based Registration Number.

vi) In the Port Towns, the EOU units located therein are administratively under the charge of the officers of Customs vide Board’s Circular No.72/2000-Cus. dated 31.8.2000. Accordingly, for the purpose of Registration process and for handling the matters relating to the provisions of Central Excise law including the filing of Returns prescribed there under, the officers of Customs have been designated as officers of Central Excise vide Notification No.32/2002-C.E.(N.T.), dated 17.9.2002 .

vii) It has been envisaged that all new registrants not having PAN (including small-scale Bid and Match Units) will be allotted a system generated 15 digit Temporary Registration Number with effect from 1.10.2002. This would eventually get converted to a regular 15 digit PAN Based Registration Number.

5.2 Important changes in Format of Application for Registration

(i) The Format of Application for Registration has been revised vide Notification No. 30/2002 C.E.(N.T.), dated 17.9.2002 which amends Notification No.35/2001-C.E. (N.T.), dated 26.6.2001, and has become applicable from 1.10.2002. With effect from 1.10.2002, the new Form provides for both obtaining Registration as well as for carrying out amendments, if any, in the information supplied after completion of Registration. For this purpose, option boxes are provided for new Registration or amendments, In case the Application Form is used to carry out amendments to the information given earlier, the registrant must furnish his Registration Number so that the system can recall the earlier Application Form to carry out the desired amendment(s).

(ii) An assessee may have different legal names i.e. one appearing in PAN and other under the name and style in which he carries on his business from the registered premises. Therefore an additional field- for providing ‘the-name as appearing in PANis proMed the Application Form.

(iii) New fields have been provided for information regarding constitution of assessee, property holding rights (like ownership, lease etc.), estimated investment in land, plant and machinery, assessee’s banks account numbers and identifier numbers issued by other Government agencies (Customs, DGFT, Sales Tax etc.).

(iv) Fields like ‘Name of the Registrant’, addresses, telephone number, fax number, boundaries of premises to be registered, major excisable goods to be manufactured etc. have been modified keeping in mind the requirements of Computer system.

(v) In cases of Proprietorship concerns or those having no authorized persons the details of the Registrant have been added to the relevant field.

(vi) The name of the Registrant/authorized Person figures in the Declaration annexed to the Application Form. In case of any change, it would be necessary to obtain another Declaration reflecting the change and effective date.

(vii) Changes have been made in the format for Grant of acknowledgement of the Application, which is to be given in the event, the Registration Certificate is not delivered on the spot at the time of the receipt of the Application Form.

(viii) Separate Document Locator Code has been Dispensed with since the new Registration process envisages on the spot grant of Registration Number which will operate as the reference number.

5.3 Components of 15 digit based Registration Number

(i) The PAN based Registration Number is Alphanumeric. The first part is the 10-Character (alphanumeric) Permanent Account Number (PAN) issued by Income Tax authorities to the person (includes a legal person) to whom the Registration No. is allotted.

(ii) The second part comprises of a fixed 2-Character alpha-code indicating the category of the Registrant, which will be as follows:

(1) Central Excise manufacturers: XM (Including registered warehouses).

(2) Registered Dealers: XD

(iii) The third part is a 3-Character numericcode-001, 002, 003…etc. In case, a manufacturer registered with the Central Excise Department, has only one factory/ dealers’s premise/warehouse, the last 3 characters will be “001”. If there are more than one factories/warehouses/dealer’s premises of such a person having common PAN for all such factories / warehouses /Dealer’s premises, the last 3 character of the Registration Number would be “001, 002, 003…etc.

Examples of 15 digits PAN based Registration Number:

(a) Where the registrant has only one factory: New Registration Number will be –

PAN+XM+001

Suppose PAN is ABCDE1234H, the New Registration Number will be

ABCDE1234HXM 001.

(b) Where the registrant has more than one factory, say 3 factories, having PAN as aforesaid, then the New Registration Number will be:

ABCDE1234HXM001

ABCDE1234HXM002

ABCDE1234HXM003

( c ) Where the registrant has one factory and is also registered as dealer, having PAN as aforesaid, then the New Registration Number will be:

ABCDE1234HXM 001 (for Manufacturer) ABCDE1234HXD 001 (for Dealer)

(iv) Where the Registrant is not having PAN (including small Scale Beedi/Match manufacturers) the system will itself generate a Temporary 15 digit PAN based Registration Number: Similar Temporary Number will be generated automatically (from 1.10.2002) for the assesses who may be having PAN but who have so far not applied for or obtained 15 digit PAN Based Registration Number. An example of the Temporary Number is:

TEMP)000(XXXM001 (for Manufacturer) TEMP)000000(D001 (for Dealer)

5.4 Procedure for application for Central Excise Registration and grant of Registration Certificate

(i) With effect form 1.10.2002 every person requiring Registration with the Central Excise (except EOUs located in Port Towns) shall apply in the proper Form, complete in all respects, in duplicate along with a self-attested copy of PAN (letter/card issued by the Income Tax Department), to the Jurisdictional Deputy/ Assistant Commissioner of Central Excise. The instructions relating to filling up of Application for Registration may be gone through carefully before filling up the Form. The Divisional/Range officers shall provide necessary support to the assessee, as may be required for completing the Form.

(ii) On receipt of Application the nominated officer (Inspector) shall scrutinize the same and if found in order, it shall be fed in the Divisional Office into the SACER by accessing the website http;//sermon.nic.in/sacer.html. In this regard, the . Directorate of Systems has circulated a manual on SACER, a soft copy of which is also available on the site itself, which will detail the fields and explain how these are to be completed.

(iii) In case the Application is not found in order or is incomplete, the nominated Officer will advise the Registrant of the deficiencies and ensure its completion before it is sent for being entered into SACER. Suitable entry will be made of the action taken in the record to be maintained for the purpose.

(iv) On completion of the data entry, the system would Automatically generate a Registration Certificate bearing the 15 digit Registration Number, which will be delivered to the assessee on the spot. As seen, normal time taken to complete the data entry of a application for Registration is 30 minutes and it would be possible to hand over the Registration Certificate immediately upon completion of the data entry.

(v) In the event the Registrant is not in possession of the PAN and has applied for the same, he shall be required to furnish a copy of the said Application. This would be used by the Divisional/Range Office to pursue the grant of PAN and subsequent conversion of the Temporary Registration Number into a 15 digit PAN based Registration Number.

(vi) In the event, it is not possible to hand over the Registration Certificate immediately at the time of receipt of the Application for any reason such as either Registrant or Deputy/Assistant Commissioner is not available or there is a technical difficulty, then the acknowledgement of the Application will be given to the assessee on the spot. Later, the Registration Certificate shall either be sent to the assessee by Registered Post or handed over personally to him next working day, as per his choice to be indicated upon the Application Form.

(vii) After grant of Registration Certificate, the disposal of the copies of the Application Form shall be, as follows:

(a) Original copy will be retained by the Divisional Office for record along with the copy of Registration Certificate issued.

(b) Duplicate copy along with a copy of Registration Certificate will be sent to the concerned Range Office for post facto verification.

(viii) The Registration Number can be used for removals, duty payments and other requirements of the Central Excise Act, 1944 and rules made there under.

(ix) Once Registration is granted, it has a permanent status, unless it is suspended or revoked by the appropriate authority in accordance with law or is surrendered by Registrant.