CBEC increases Excise Duty on Petrol & Diesel by Rs. 2 Per Litre

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

     

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification

No. 1/2015-Central Excise

New Delhi, the 1^st January, 2015  

     

G.S.R.    (E). - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.12/2012-Central Excise, dated the 17^th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R. 163(E), dated the 17^th March, 2012, namely: -

In the said notification, in the Table,-

(i) in serial number 70,-

(a) against item (i) of column (3), for the entry in column (4), the entry “₹ 6.95 per litre” shall be substituted;

(b) against item (ii) of column (3), for the entry in column (4), the entry “₹ 8.10 per litre” shall be substituted;

(ii) in serial number 71,-

(a) against item (i) of column (3), for the entry in column (4), the entry “₹ 5.96 per litre” shall be substituted;

(b) against item (ii) of column (3), for the entry in column (4), the entry “₹ 8.25 per litre” shall be substituted;

2.         This notification shall come into force with effect from the 2^nd day of January, 2015.

[F. No.354/123/2014-TRU]

   

(Akshay Joshi)
Under Secretary to the Government of India

Note.- The principal notification No. 12/2012-Central Excise, dated the 17^th March, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 163(E) dated the 17^th March, 2012 and was last amended vide notification No.24/2014-Central Excise, dated the 2^nd December, 2014 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 862(E) dated the 2^nd December, 2014.

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10% Excise Duty Payable on capital goods and automobile continue to be 10/% till 31.12.2014

[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 06/2014-Central Excise

New Delhi, the 25^th June, 2014

            G.S.R.     (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2012-Central Excise, dated the 17^th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 163(E), dated the 17^th March, 2012, namely:-

            In the said notification, in the opening paragraph, in the second proviso, for the figures, letters and words “30th day of June, 2014”, the figures, letters and words “31st day of December 2014” shall be substituted.

[F.No. 354/85/2014-TRU]

(Akshay Joshi)

Under Secretary to the Government of India

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Clarification on availing excise duty exemption on substantial expansion by existing unit in J&K”

Clarification on availing excise duty exemption on substantial expansion by existing unit in J&K

The Central Board of Excise & Customs (“the Board”) vide Circular No. 977/01/2014-CX, dated January 03, 2014 (“the Circular”) has clarified on following issue on representations received from trade and industry associations.

Issue: Whether an existing unit in Jammu & Kashmir, which has availed of excise duty exemption under Notification No.56/2002-CE (location specific exemption to all goods other than the exclusion list) & No.57/2002-CE (non-location specific exemption to specified industries other than the exclusion list), both dated 14.11.2002 by way of substantial expansion can avail of excise duty exemption under Notification No.1/2010-CE, dated 06.02.2010, again by way of second substantial expansion.

Clarification: Existing unit which has availed of excise duty exemption under Notification No.56/2002-CE & 57/2002-CE, both dated 14.11.2002 by way of substantial expansion can avail of excise duty exemption under Notification No.1/2010-CE, dated 06.02.2010 again by way of second substantial expansion so long as it satisfies the conditions stipulated under Notification No.1/2010-CE, dated 06.02.2010.

Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us.

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FCA, FCS, LLB, B.Com (Hons)
Mobile: +91 9810604563
E-mail: bimaljain@hotmail.com

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Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document should be distributed or copied (except for personal, non-commercial use) without our written permission.

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Cenvat Credit Rules from scratch

Before we begin:
Hello friends! Greetings of the day to all of you. In this article we will be discussing some basic concepts in Cenvat credit Rules,2004…Cenvat Credit Rules is really one of the most important topic not only from exam view but also in practical life…and no need to say that most of the litigations in excise and ST is on a single question-whether Cenvat credit can be claimed or not ?This topic is also the most interesting topic in indirect taxes.

This article is written keeping in mind all beginners like me and I have tried my best to discuss the concepts comprehensively backed by suitable examples… believe that it will be useful for you…

Q-1 What is Cenvat Credit?

Ans-The word CENVAT Credit is composed of two words CENVAT and Credit, where CENVAT means Central Excise Duty or Service Tax and also Custom duty (in a few cases).

Credit means a subsequent claim of set-off of something paid earlier. Therefore, Cenvat credit means credit of ST/excise and customs(additional duty) paid on purchase of inputs , input services and capital goods…..such
credit can be used/utilized/set-off against ST/excise payable on clearance of manufactured products and rendering of services…

For Instance-Bata India Ltd. a shoe manufacturing co. use the leather as raw material which is purchased with excise duty as charged by supplier….Bata also uses the services of fashion designers to make fashionable shoes, thus it paid ST on bills raised by fashion designers…….Now Bata Ltd manufactured shoes and want to clear the same from factory, in that case Bata Ltd liable to pay excise duty on manufactured shoes…..such excise duty can be paid by utilizing the credit of input excise and input ST as paid …and still if anything left unpaid the same to be paid in cash.

Q-2 How Cenvat Credit is different from Modvat Credit?

Ans-2 In fact Cenvat is the refined version of Modvat. In Modvat system you can take credit of input excise against output excise but you cannot claim credit of input service tax against output service tax or against output excise. In short service sector was not integrated in credit system.

But in 2004 Modvat Credit Rules were repealed(withdrawn) by introduction of Cenvat Credit Rules, 2004. Under Cenvat system, you can take the credit of both input excise and input ST to pay output excise or to pay output ST that’s why Cenvat system is also termed as Cross-sectional credit system. So, obviously Cenvat is far better than Modvat.

Special Note:(But if you have noted that still many companies are in fact recording Cenvat by the name of Modvat….aur toh aur h apne tax Audit form 3CD ka clause No.-22(a) hi dekh lijiye waha bhi Modvat hi milega jo ki really mein Cenvat hi h…:-)

Q-3 What is the scope of Cenvat credit?
Ans-3 As per Rule 3(1) of Cenvat Credit Rules(CCR),2004 credit of following input tax or duties paid on purchase of inputs(raw mat.), input services and capital goods can be claimed subject to specific restrictions as
provided in Rules:

a. Excise duty or Service tax or Special/Additional duty of customs (CVD) chargeable u/3(1) or Sec3 (5) of of Customs Tariff Act(CTA), 1975 can be claimed as Cenvat Credit.

b. But here it is important to note that as per Proviso to Rule 3(1) of Cenvat Credit Rules,2004 the credit of additional/special custom duty(CVD) as paid under Sec 3(5) of CTA,1975 cannot be claimed by a service provider to pay output ST or excise. however manufacturer can claim the same to pay output excise.

Q-4 We know that Cenvat credit can be taken of Excise, ST or Additional customs, as the case may be, paid on inputs or input services or capital goods?...So explain how to identify that what qualifies as inputs , input servs and capital goods?

Ans-4 A) Inputs: Simply we can call as raw material.

As per Rule 2(k) of CCR, 2004, Inputs means and includes the following:
i) All goods used in factory by manufacturer for manufacturing final products and also includes goods used by service provider to provide output service (service provider can use the same even outside the service station/premises)

ii) Input also include goods used for generation of electricity or steam for use in factory (captive consumption) inputs may be used outside the factory i.e. at electricity plant site but electricity/steam to be used in factory only)

iii)All accessories cleared along with final product provided the value of the same is included in the value of Final
product

For Instance: Colgate Limited manufacture toothpaste but clear the toothpaste in packed box with a free toothbrush attached therewith but in reality the same is not at all free because the value of same is included
in the MRP of paste itself and thus toothbrush qualify as inputs…:-)

iv) Any goods used for providing free warranty (after sale services)

(B) Input Services: Input services means and include the following:

i) Any service used by provider of output service to provide the same

ii) Any service used whether directly or indirectly in or in relation to:
– manufacture of final products and
– clearance of final products upto place of removal and not beyond that

(Where place of removal = factory or warehouse or in some cases premises of consignee if goods were sold through consignee—See Sec 4(3)(c) of Cent Ex Act,1944)

iii) Input services also include these 18 services listed below (Inclusive clause)
These 18 services are eligible as input service for both manufacturer and service provider and these services are always deemed to be use for manufacturing/service operation:

1. Modernization/repairs & maintenance of factory or service station /premises
2. Advertisement or Sales Promotion..
3. Market Research
4. Storage up to place of removal
5. Procurement of inputs
6.Accounting
7. Auditing
8. Financing
9.Recruitment & Quality control
10.Caoching & training
11. Computer networking
12.credit rating
13.share registry
14. Security
15.Business exhibition
16.legal services
17. inward transportation
18.outward transportation up to place of removal. 
The above 18 services can be remembered by remembering these 3 sentences:

(In bracket the services serial no. has been indicated)

1. Advertisement-(2) in modern(1) factory to store(4) the procured inputs(5) so that there quality(9) could be maintained and the accountant(6) may easily audit/verify(7) the stock.

2. Using Security(14) and legal services(16) to get shares registered(13) thereby getting good credit rating(14) which would help in financing by banks(8)

3. Remaining 6 services to be crammed-(See point No.3, 10,11,15,17&18)

(C) Capital goods: Capital goods means and include the following:

i) All goods specified under First Schedule of Central Ex. Tariff Act(CETA),1985
(Like machineries, boilers, various tools , spare parts and accessories of various equipments and instruments)

ii) Pollution control equipment

iii) moulds and dies, jigs and fixtures:

a. mould-a container used to design liquid in desired shape
b. dies-a device/equipment for cutting metals
c. jigs-a device that guides the tools used in any manufacturing process
d. fixtures-a piece of equipment which is in fixed position

iv) refractories and refractory materials where refractory – means lining consisting of materials with a high melting point used to line the inside walls of a furnace

v) tubes, pipes and their fittings

vi) storage tanks and

vii) Motor vehicles (other than meant for transport of goods or persons….but including dumpers, tippers , cranes and loader used for handling of machineries etc. )
However, Motor vehicles used for transport of goods shall be capital goods for those service providers who are using the same as:

1. For renting the motor vehicles and the same are used by lessee in his goods transport business

2. For transportation of inputs and other capital goods in connection with rendering of output service.

Example: Unique Techno Sales & Service is using its trucks to carry spare parts and machineries at the premises of its customer where the repairs and maintenance services are being provided, and then the trucks will qualify as capital goods for Unique Sales & Service

3. For providing courier agency services…so trucks, tempos used by First Flight couriers will qualify as capital goods for it.

Further, Motor vehicles used for transport of passengers will qualify as capital goods for the following service

providers using the same as:
1. For transportation of passengers

2. For renting the motor vehicle….so if I own some buses and give the same on hire then the same will qualify as capital goods for me.

3. Imparting motor driving training

Q-5 We have discussed what is input and input services…so now discuss which raw materials or services which seems as input or input services but actual the same are specifically excluded?

Ans- Following are not inputs (As per Explanations to Sec2 (k)
1. Light diesel Oil, High speed Oil or Petrol

2. Capital goods except when used as parts in manufacture of a final product(say very heavy machineries)

3.Motor vehicles…..in some cases motor vehicles are not capital goods(See Ans-4) so many manufacturers started to treat the same as inputs for claiming Cenvat credit …so for the same it was clarified that in no case motor vehicles will qualify as inputs…

4.Any goods used for personal consumption of employees…so if packed dry fruits gifted to employees on the occasion of Diwali will not qualify as inputs …so excise duty charged by Urmin Products Ltd(Supplier) cannot be claimed as Cenvat credit :-)

5. Any goods used for:

a. Construction or execution of works contract of a building or its part

b. Laying of foundation for support of capital goods

For Instance: Wipro Ltd.using bricks, cement for constructing a factory building…then the same will not qualify as input for Wipro Ltd…and therefore Wipro Ltd cannot claim the credit of excise.

However, if Wipro Ltd has signed a contact with Niddhi Construction to construct the building then M/s Niddhi Construction can claim the credit of excise paid on cement, bricks …and accordingly discharge its ST liability by
utilizing the credit ….. (Point 5 inserted w.e.f Apr 1,2012 to overrule the judgment of Customs, Ex. And ST Appellate Tribunal (CESTAT),New Delhi in the case of Oberoi Mall vs Commissioner of Central Excise….thank god the amendment was not retrospective)

6. Any goods which have no relation with the manufacturing of final product or providing output service cannot be considered as input.

Following are not input services as per Explanations to Sec2 (l):

1. Construction or Works contract services…continuing with the example in point 4(above)…Wipro Ltd as per agreement with M/s Niddhi Construction paid the contracted price with ST as applicable…now it’s a million dollar question that whther Wipro Ltd can claim the credit of that ST …….

The answer is NO….Wipro Ltd whether self construct or sign a contract …in both cases –no Cenvat credit….

(This point also inserted w.e.f Apr 1,2012 to overrule the judgment of Customs, Ex. And ST Appellate Tribunal(CESTAT) ,New Delhi in the case of Oberoi Mall vs Commissioner of Central Excise)

2. Input services excludes service of general insurance, repairs & maintenance in relation to motor vehicles which are not capital goods [as per Rule 2(a)-See above]. But credit is available to manufacturer for insurance , repairs & maintenance of motor vehicles manufactured by him…So Hero Motocorp can claim the credit of bikes insured with National Insurance co,…..but say Reliance Industries insured its motor vehicles, then Reliance cannot claim credit as such…..

3. Input services related to hiring of motor vehicles cannot be claimed as credit if the motor vehicles are not
capital goods as per Rule 2(a).

For Instance: Reliance Industries hiring some tempos so that the raw materials could be brought to factory from suppliers godown….in that case tempos will not qualify as capital goods therefore hiring services taken by
Reliance is not input services and therefore credit of ST paid with hiring charges cannot be claimed…

4. Servicees used primarily for personal consumption of employees like health services, beauty treatment, life insurance, travel benefits(not for business purpose) etc. are also excluded from the definition of input services…
With this we finish the discussion here only, the remaining concepts will be discussed in next articles very soon…..So Good Bye….:-)

Thanks for your reading.
For any feedbacks, queries and comments feel free to mail me.
With Warm Regards
Saurabh Maheshwari
CA Final Student
Email-saurabhchokhra92@gmail.com
The will to win, the desire to succeed and the urge to reach your full potential these are the keys that will unlock
the doors of you excellence.
Source : IDT Refrence book and others -

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Comprehensive set of excel format for the excise records to be maintained

Mr. Sumit Bansal, FCA  have recently drafted a comprehensive set of excel format for the excise records to be maintained. It should be particularly useful to small units who are planning to take excise registration and may not be having any ERP for the same. To Download the file click here

This file has been shared by CA Sumit Bansal, FCA. He Can be reached at sumibans@gmail.com

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Amendment in Cenvat Credit Rules, 2004- Notification-No12/2013-DT-27/09/2013

Notification-No12/2013-DT-27/09/2013

 

 

[TO BE PUBLISHED IN THE GAZETTE OF INDIA,

 

EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

 

Notification No. 12 /2013-CE (NT)

 

New Delhi, the 27th September, 2013

G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1) These rules may be called the CENVAT Credit (Second Amendment) Rules, 2013.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In rule 3 of the CENVAT Credit Rules, 2004, for sub-rule (5A), the following sub-rule shall be substituted-

“ (5A) (a) If the capital goods, on which CENVAT credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:-

for computers and computer peripherals: (i) for computers and computer peripherals:

for each quarter in the first year @ 10%

for each quarter in the second year @ 8%

for each quarter in the third year @ 5%

for each quarter in the fourth and fifth year @ 1%

(ii) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter:

Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value.

(b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.”

F. No. 267/42/2012-CX.8

(Vikas Kumar)

Director to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3,Sub-section (i), dated the 10^th September, 2004, vide NotificationNo. 23/2004 – Central Excise (N.T.) dated the 10^th September, 2004, vide number G.S.R. 600(E), dated the 10^th September, 2004 and last amended vide Notification No.3/2013-Central Excise (N.T.) dated the 1^st March, 2013 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 150(E), dated the1^st March, 2013.

 

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What is Excise Duty ????

The Customs Act was formulated in 1962 to prevent illegal imports and

exports of goods. Besides, all imports are sought to be subject to a duty with a view to affording protection to indigenous industries as well as to keep the imports to the minimum in the interests of securing the exchange rate of Indian currency. 

Duties of customs are levied on goods imported or exported from India at the rate specified under the customs Tariff Act, 1975 as amended from time to time or any other law for the time being in force. For the purpose of exercising proper surveillance over imports and exports, the Central Government has the power to notify the ports and airports for the unloading of the imported goods and loading of the exported goods, the places for clearance of goods imported or to be exported, the routes by which above goods may pass by land or inland water into or out of Indian and the ports which alone shall be coastal ports 

In order to give a broad guide as to classification of goods for the purpose of duty liability, the central Board of Excises Customs (CBEC) bring out periodically a book called the "Indian Customs Tariff Guide" which contains various tariff rulings issued by the CBEC. The Act also contains detailed provisions for warehousing of the imported goods and manufacture of goods is also possible in the warehouses. 

For a person who do not actually import or export goods customs has relevance in so far as they bring any baggage from abroad. 

Importance of Central Excise Duty 

Central excise revenue is the biggest single source of revenue for the Government of India. The Union Government tries to achieve different socio-economic objectives by making suitable adjustments in the scope and quantum of levy of Central Excise duty. The scheme of Central Excise levy is suitably adapted and modified to serve different purposes of price control, sufficient supply of essential commodities, industrial growth, promotion of small scale industries and like Authority for collecting the Central Excise duty. 

Article 265 of the Constitution of India has laid down that both levy and collection of taxes shall be under the authority of law. The excise duty is levied in pursuance of Entry 45 of the Central List in Government of India Act,1935 as adopted by entry 84 of List I of the seventh Schedule of the Constitution of India. Charging section is Section 3 of the Central Excises and Salt Act,1944. 

Liability to pay Central Excise Duty 

Section 3 of the Central excises and Salt Act,1944 provides that there shall be levied and collected in such manner as may be prescribed, duties of excise on all excisable goods other than salt which are produced or manufactured in India at the rates set forth in the schedule to the Central excise Tariff Act,1985.it is therefore clear that as soon as the goods in question are produced or manufactured, they will be liable to payment of Excise duty. However for convenience duty is collected at the time of removal of the goods. While Section 3 of the Central Excises and salt Act,1944 lays down the taxable event, Rules 9 and 49 of the Central excise Rules,1944 provides for the collection of duty.

                                 

This Article is written by CMA Samir Biswal. He can be reached at cmasamirbiswal@gmail.com

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AMOUNT TO BE PAID BY THE MANUFACTURER ON REMOVAL OF INPUTS AND CAPITAL GOODS

As per Rule 3(5) and Rule 3(5A) as amended w.e.f. 17-03-2012, of the Cenvat Credit Rules, 2004, where a manufacturer of final product or a provider of output service removes any inputs or capital goods from his factory/premises, then he shall be liable to pay an amount calculated as follows:-

CASE I

INPUTS REMOVED AS SUCH [RULE 3(5)]

If the inputs on which cenvat credit has been availed are removed as such, the manufacturer or provider of output services shall pay an amount equal to the Cenvat credit availed in respect of such inputs.

CASE II

CAPITAL GOODS REMOVED AS SUCH [RULE 3(5)]

If the capital goods on which cenvat credit has been availed are removed as such, the manufacturer or provider of output services shall pay an amount equal to the Cenvat credit availed in respect of such capital goods.

CASE III

CAPITAL GOODS REMOVED AFTER BEING USED WHETHER AS CAPITAL GOODS OR AS SCRAP OR WASTE [RULE 3(5A)]

If the capital goods on which Cenvat credit has been taken are removed after being used, whether as capital goods or as scrap or waste, the manufacturer or provider of output services shall pay an amount equal to the Cenvat credit taken on the said capital goods reduced by the certain specified percentage points for each quarter of a year or part thereof from the date of taking the Cenvat credit.

In other words, if the capital goods are removed after being used, whether as capital goods or as scrap or waste, the manufacturer or a provider of output services shall pay an amount as follows:-

Higher of the following two (i) or (ii)

(i)                  Amount of Cenvat Credit taken

Less: The following percentage points calculated by straight line method for each quarter of a year or part thereof from the date of taking the Cenvat Credit-

(a)    For computers and computer peripherals:

For each quarter in the first year @10%;

For each quarter in the second year @8%;

For each quarter in the third year @5%; and

For each quarter in the fourth and fifth year @1%

(b)   For capital goods other than computers and computer peripherals:

@2.5% for each quarter.

(ii)                Amount equal to the duty leviable on transactional value of  such capital goods

 

This Article has been Shared by Student of ICAI Palak Aggarwal. She can be reached at aggarwal.palak2809@gmail.com 

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Procedures in Central Excise and Returns to be filed ( Written by CMA Samir Biswal)

Administration of Central Excise	Administration of Central Excise is under CBE&C (Central Board of Excise and Customs). The hierarchy is – Chief Commissioner, Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner, Superintendent and Inspector.
Registration	Every person who produces or manufactures excisable goods, is required to get registered, unless exempted. [Rule 9 of Central Excise Rules]. If there is any change in information supplied in Form A-1, the same should be supplied in Form A-1.
Daily Stock Account	Manufacturer is required to maintain Daily Stock Account (DSA) of goods manufactured, cleared and in stock. [Rule 10 of Central Excise Rules]
Clearance of goods under Invoice	Goods must be cleared under Invoice of assessee. In case of cigarettes, invoice should be countersigned by Excise officer. [Rule 11 of Central Excise Rules]
Payment of excise duty	Duty is payable on monthly basis through GAR-7 challan / Cenvat credit by 5th/6th of following month, except in March.  SSI units have to pay duty on quarterly  basis by 5th/6th of month following the quarter. Assessee paying duty through PLA more than Rs 10 lakhs per annum is required to make e-payment only [Rule 8].
Returns of production, clearances and payment of excise duty	Monthly return in form ER-1 should be filed by 10th of following month. SSI units have to file quarterly return in form ER-3. [Rule 12 of Central Excise Rules] – - EOU/STP units to file monthly return in form ER-2 – see rule 17(3) of CE Rules. Assesses paying 1%/2% excise duty are required to file ER-8 quarterly return.E-return is mandatory to all assesses.
Annual Financial Information	Assesses paying duty of Rs one corer or more per annum through PLA are required to submit Annual Financial Information Statement for each financial year by 30th November of succeeding year in prescribed form ER-4 [rule 12(2) of Central Excise Rules].
Information about Principal Inputs	Specified assesses are required to submit Information relating to Principal Inputs every year before 30th April in form ER-5, to Superintendent of Central Excise. [Rule 9A (1) to Cenvat Credit Rules]. Any alteration in principal inputs is also required to be submitted to Superintendent of Central Excise in form ER-5 within 15 days [rule 9A (2) to Cenvat Credit Rules]. Only assesses manufacturing goods under specified tariff heading are required to submit the return. The specified tariff headings are – 22, 28 to 30, 32, 34, 38 to 40, 48, 72 to 74, 76, 84, 85, 87, 90 and 94; 54.02, 54.03, 55.01, 55.02, 55.03, 55.04. Even in case of assesses manufacturing those products, only assesses paying duty of Rs one corer or more (either through current account or Cenvat credit) are required to submit the return.
Monthly return of receipt and consumption of each of Principal Inputs	Assesses who is required to submit ER-5 is also required to submit monthly return of receipt and consumption of each of Principal Inputs in form ER-6 to Superintendent of Central Excise by tenth of following month [rule 9A(3) to Cenvat Credit Rules]. Only those assesses who are required to submit ER-5 return are required to submit ER-6 return. See chart below for various returns to be filed.
Annual Installed Capacity statement	Submit Annual Installed Capacity Statement in form ER-7 every year before 30th April.
Submission of List of records	Every assesses is required to submit a list in duplicate of records maintained in respect of transactions of receipt, purchase, sales or delivery of goods including inputs and capital goods, input services and financial records and statements including trial balance [Rule 22(2)].
Changes in details of assessee	Inform change in boundary of premises, address, name of authorized person, change in name of partners, directors or Managing Director in form A-1. [Refer Instructions given below form A-1]
Non-core procedures (to be followed when required)	·         Export without payment of duty or under claim of rebate [Rules 18 and 19 of Central Excise Rules] ·         Receipt of goods for repairs / reconditioning [Rule 16 of Central Excise Rules] ·         Receipt of Goods at concessional rate of duty for manufacture of Excisable Goods. ·         Provisional Assessment [Rule 7 of Central Excise Rules] ·         Warehousing of goods. ·         Adjudication, Appeals and settlement. See chart after following chart for summary of non-core procedures

Periodic returns under Central Excise

Assesses is required to file periodic returns.

Following are the returns to be filed

Form of Return	Description	Who is required to file	Time limit for filing return
ER-1[Rule 12(1) of Central Excise Rules]	Monthly Return by large units	Manufacturers not eligible for SSI concession	10th of following month
ER-2[Rule 12(1) of Central Excise Rules]	Return by EOU	EOU units	10th of following month
ER-3[Proviso to Rule 12(1) of Central Excise Rules]	Quarterly Return by SSI	Assesses eligible for SSI concession (even if he does not avail the concession)	10th of next month of the quarter
ER-4[rule 12(2) of Central Excise Rules]	Annual Financial Information Statement	Assesses paying duty of Rs one corer or more per annum either through PLA or Cenvat or both together (Till29-9-2008, the provision was applicable only when payment through PLA alone was more than Rs one corer).	Annually by 30th November of succeeding year
ER-5[Rules 9A(1) and 9A(2) of Cenvat Credit Rules]	Information relating to Principal Inputs	Assesses paying duty of Rs one crore or more per annum (either through PLA or Cenvat or both together) and manufacturing goods under specified tariff headings (Till29-9-2008, the provision was applicable only when payment through PLA alone was more than Rs one crore).	Annually, by 30th April for the current year (e.g. return for 2005-06 is to be filed by30-4-2005].
ER-6 [Rule 9A(3) of Cenvat Credit Rules]	Monthly return of receipt and consumption of each of Principal Inputs	Assessees required to submit ER-5 return	10th of following month
ER-7 [Rule 12(2A) of Central Excise Rules]	Annual Installed Capacity Statement	All assessees, except manufacturers of biris and matches without aid of power and  , reinforced cement concrete pipes	Annually, by 30th April for the previous year (e.g. return for 2010-11 should be submitted by30-4-2011
ER-8 [Sixth proviso to Rule 12(1) of CE Rules]	Quarterly return	Assessees paying 1%/2% excise duty and not manufacturing any other goods	Quarterly within 10 days after close of quarter
Form as per Notification No. 73/2003-CE(NT) [Rule 9(8) of Cenvat Credit Rules]	Quarterly return of Cenvatable Invoices issued	Registered dealers	By 15th of following month
ST-3 [Rule 9(9) of Cenvat Credit Rules and rule 7(2) of Service Tax Rules]	Half yearly return of taxable services provided	Person liable to pay service tax	Within 25 days from close of half year
ST-3 [Rule 9(10) of Cenvat Credit Rules]	Half yearly return of Cenvat credit distributed	Input Service Distributor	Within one month from close of half year

Other Procedures in Central Excise

Export Procedures	·         Exports are free from taxes and duties. ·         Goods can be exported without payment of excise duty under bond under rule 19 or under claim of rebate of duty under rule 18. ·         Container containing export goods should be sealed by excise officer. Self-sealing is permissible. ·         Excisable Goods should be exported under cover of Invoice and ARE-1 form. Export should be within 6 months from date of clearance from factory. ·         Merchant exporter has to execute a bond and issue CT-1 so that goods can be cleared without payment of duty. Manufacturer has to issue Letter of Undertaking. ·         Exports to Nepal/Bhutan are required to be made on payment of excise duty, except when supply is against international bidding. ·         Rebate under rule 18 can be either of duty paid on final products or duty aid on inputs but not both. ·         EOU has to issue CT-3 certificate for obtaining inputs without payment of excise duty.
Bringing good for repairs	·         Final products cleared on payment of duty can be brought back for repairs etc., by following prescribed procedures. ·         Duty paid goods can be brought in factory for being re-made, refined, and reconditioned or for any other reason under rule 16. ·         The goods need not have been manufactured by assesses himself. ·         Cenvat credit of duty paid on such goods can be taken, on basis of duty paying documents of such goods. ·         After processing/repairs, if the process amounts to ‘manufacture’, excise duty based on assessable value is payable. ·         If process does not amount to manufacture, an ‘amount’ equal to Cenvat credit availed should be paid [rule 16(2)]. ·         If some self manufactured components are used, duty will have to be paid on such components. ·         Buyer/recipient of such goods can avail Cenvat credit of such amount/duty. ·         If the above procedure cannot be followed, permission of Commissioner is required [rule 16(3)].
Bonds	·         Assesses is required to execute bond for various purposes like obtaining goods without payment of duty, clearance of seized goods etc. B-1 bond is for exporting without payment of duty, B-17 bond is for EOU.
Bringing goods are concessional rate of duty	·         Goods can be obtained at concessional rate of duty concessional rate of duty under Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, if prescribed conditions are satisfied and procedure is followed.

This Article is written by CMA Samir Biswal. He can be reached at cmasamirbiswal@gmail.com

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