Registration Procedure-Excise

Registration Procedure under Central Excise

Who are Liable to register

As per the Central Excise Rules 2002 as amended time to time by way of notifications., rule 9 “Manufacturer of excisable goods or any person who deals with excisable goods are required to get the premises registered with the Central Excise department before commencing business”. On first time  reading this definition  the first thing comes in my mind that the coverage of rule 9 is wide and it even covers all those who are in to manufacture or dealt with excisable goods like a wholesaler or a retailer or a individual who  buys goods for sale/resale or own consumption.

But when gone through detailed  It give me the Impression “manufacturers’ of excisable goods or any person who deals with excisable goods, with some exceptions, are required to get the premises registered with the Central Excise Department before commencing business”

So there are some exceptions also provided that “a person who require the registration” and “who do not require registration/exempt from registration”

Person Liable to registration

In accordance to rule 9 and notification issued under rule 18 and rule 19 of Central Excise Rules, 2002 as the case may be the following category of persons are required to register his place of business/factory with appropriate CEO.

1. Every manufacturer of excisable goods (including Central/State Government undertakings or undertakings owned or controlled by autonomous corporations) on which excise duty is leviable .
2. Persons who desire to issue CENVATABLE invoices under the provisions of the CENVAT Credit Rules, 2001.
3. Persons holding private warehouses.
4. Persons who obtain excisable goods for availing end-use based exemption notification.
5. Exporters manufacturing or processing export goods by using duty paid inputs and intending to claim rebate of such duty or by using inputs received without payment of duty and exporting the finished export goods.

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:

6. Interlinked process – product manufactured/produced in one premise are substantially used in other premises for manufacture of final products.
7. Large number of raw materials are common and received/proposed to be received commonly for both/all the premises
8. Common electricity supplies.
9. There is common labour /work force
10. Common administration/ works management.
11. Common sales tax registration and assessment
12. Common Income Tax assessment
13. Any other factor as may be indicative of inter-linkage of the manufacturing processes.
    This is neither an exhaustive list of indicators nor each indicator is necessarily in each case. The Commissioner has to decide the issued from case to case

Persons Exempted From registration

By the virtue of Notification No. 36/2001-CE (NT) dt.26.6.2001, following specified  categories of persons/premises are exempted from obtaining registration:

1. Persons who manufacture the excisable goods, which are chargeable to nil rate of excise duty or are fully exempt from duty by a notification.
2. Small scale units availing the slab exemption based on value of clearances under a notification. However, such units will be required to give a declaration once the value of their clearances touches Rs.90 lakhs.
3. In respect of ready-made garments, the job-worker need not get registered if the principal manufacturer undertakes to discharge the duty liability.
4. Persons manufacturing excisable goods by following the warehousing procedure under the Customs Act, 1962 subject to the following conditions:
1. the said excisable goods and any intermediary or by-product 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;
2. the manufacturer shall file a declaration in the specified form annexed hereto in triplicate for claiming exemption under this notification;
3. 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.
5. The person who carries on wholesale trade or deals in excisable goods (except first and second stage dealer, as defined in Cenvat Credit Rules, 2001).
6.  A Hundred per cent Export Oriented Undertaking, or a unit in Free Trade Zone or Special Economic Zone licensed or appointed, as the case may be, under the provisions of the Customs Act, 1962.
7. Persons who use excisable goods for any purpose other than for processing or manufacture of goods availing benefit of concessional duty exemption notification.

Declaration in Lieu of registration

The manufacturers who are exempted from the operation of Rule 9 by virtue of Notification no. 36/2001-Central Excise (NT) dt.26/6/2001 have to file a declaration with the Assistant Commissioner of the respective Divisions.

 Genuine delay in filing the required declaration need not be viewed seriously and the assessee may be allowed to enjoy the exemption from the operation of Rule 9 as well as from the payment of duty provided the conditions stipulated in the respective exemption Notifications have been duly fulfilled

Period of Validity of Registration

Once registration is granted it is permanent in nature until surrendered by the person or company or suspended or revoked by appropriate authority.

Procedure for Registration

New registrants required to apply online through the ACES website.

Link: - www.aces.gov.in

Note:

1.       Separate Registration required in for each depot, godown, however in case of Liquid and gaseous product availability of godown should not be insisted.

2.       Registration certificate may be granted to Minors provided their legal or natural guardian conduct business on their behalf.

3.       On the Death of holder of registration certificate, the certificate cease to be valid and any other person who wishes to continue with the operations ,he needs to apply fresh.

4.       Existing assessee are required to get themselves registered with ACES merely by filing a declaration with the appropriate officer and thereby obtaining  TPIN and password from the department.