surrender of Registration certificate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2010 Hi,
The value of clearance is below the exemption limit( 150 lacs) for last 3 years. I want to surrender the registration certificate under Rule 9 of C.E.Rules. Pls let me know the procedures and Notification No.

S P Dinda

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2010 I have contacted Excise Department and they advise that that surrender of registration is to be made through electronically. I have gone through the form of surrender. But It appears that surrender only can be made in case of close of business. But my unit want to continue the business without Excise Registration since there is no possibility to reach Rs 1.50 crore in near future. Pls advice
Thanks
S P Dinda

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2010 Not yet resolved

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Here’s a clear explanation for **surrender of Central Excise Registration** under the scenario where your turnover is below the exemption limit:

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### 1. **Applicability to SSI Units with turnover below exemption limit (Rs. 1.5 crore)**

* If your clearances (turnover) are below Rs. 1.5 crore (exemption limit for small scale units), you are **not liable to be registered under Central Excise**.
* Hence, you can surrender your Central Excise Registration.

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### 2. **Procedure to surrender Central Excise Registration (Rule 9 of Central Excise Rules, 2002)**

* **Rule 9** provides for surrender of Central Excise Registration.
* The surrender should be filed **electronically through the ACES portal**.
* You need to submit a **request for surrender** specifying the reason (such as turnover below exemption limit).
* The department will verify your dues (if any) and approve the surrender.
* After acceptance, your registration will be marked **inactive**.

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### 3. **Is surrender allowed if business is continuing?**

* **Surrender of Excise Registration is primarily meant when you stop manufacturing or clearances fall below exemption limit and you want to avoid excise compliance.**
* You **can surrender even if business continues**, but you must ensure:

* Your turnover is below exemption limit,
* You don’t clear excisable goods beyond threshold,
* You are not liable to pay excise duty.
* Post surrender, you are free to operate without excise registration and are not bound by excise procedural requirements.

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### 4. **Notification and references**

* Central Excise Rule 9 (Central Excise Rules, 2002) deals with surrender of registration.
* For SSI units, exemption from Central Excise registration is given under Notification No. 8/2003-CE dated 01.03.2003 (and subsequent amendments).
* You must check your turnover to confirm exemption.

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### Summary:

| Step | Action |
| ----------------------- | ------------------------------------------- |
| Verify turnover | Confirm turnover is below Rs. 1.5 crore |
| File surrender online | Use ACES portal for surrender request |
| Department verification | Department verifies no dues pending |
| Approval | Registration marked inactive |
| Post surrender | No excise registration or compliance needed |

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**Note:** If you plan to continue business without excise registration, ensure your clearances remain below exemption limit to avoid penalty.

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If you want, I can help you draft the surrender application or guide you on filing it through ACES. Would you like that?

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