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CENTRAL EXCISE COMPLIANCE CHECKLIST

The Central Excise duty is levied in terms of Central Excise Act, 1944 and the rates of duty, ad valorem or specific, are prescribed under the Schedule I and II of the Central Excise Tariff Act, 1985. The taxable event under the Central Excise law is 'manufacture' and the liability of Central Excise duty arises as soon as the goods are manufactured . The Central Excise Officers are also entrusted to collect other types of duties levied under Additional Duties of Excise (Goods of Special Important) Act, Additional Duties of Excise (Textiles and Textile Articles) Act, Cess etc. Administration of Central Excise The Central Excise law is administered by the Central Board of Excise and Customs (CBEC or Board) through its field offices, the Central Excise Commissionerates. For this purpose, the country is divided into 23 Zones and a Chief Commissioner of Central Excise heads each Zone. There are total 92 Commissionerates in these Zones headed by Commissioners of Central Excise. Divisions and Ranges are the subsequent formations, headed by Deputy/Assistant Commissioners of Central Excise and Superintendents of Central Excise, respectively. For enforcing the Central Excise law and collection of Central Excise duty the following types of procedures are being followed by the Central Excise Department a) Physical Control- Applicable to cigarettes only. Here assessment precedes clearance which takes place under the supervision of Central Excise officers; Self-Removal Procedure- Applicable to all other goods produced or manufactured within the country. Under this system, the assessee himself determines the duty liability on the goods and clears the goods.

b)

The hierarchy is Chief Commissioner, Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner, Superintendent and Inspector/ Range Officers Registration Every person who produces, manufactures, carries on trade, holds private store-room or warehouse or otherwise uses excisable goods shall get registered as per the provisions of Rule 9. Section 6 of Central Excise Act, 1944 lays down the statutory provision in this respect. Exceptions to this legal requirement is embodied in Notfn. No. 36/2001-C.E.(N.T.) dt.26.06.01, wherein certain specific categories of persons/ premises have been exempted from registration.

The application for registration has to be made to the jurisdictional Central Excise Officer in Form A-1. Manufacturers who are exempted from registration by virtue of the said Notification have to file a declaration with the Assistant Commissioner of their respective Divisions.

Non-obtaining of a licence under the Central Excise law is liable to punishment. Manufacturers enjoying exemption from the payment of Central Excise Duty are also exempted from licensing control subject to certain conditions as laid down in Rule 174A. 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 E-return is mandatory where duty paid in previous year (by cash and/or through Cenvat credit) exceeded Rs 10 lakhs in previous year. Annual Financial Information Assessee paying duty of Rs One crore 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. Submission of List of records Every assessee 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)]. Form of Description Return ER-1 Monthly Return large units ER-2 Return by EOU ER-3 Time limit for filing return by Manufacturers not eligible for SSI 10th of following exemption month Export Oriented units 10th of following month Quarterly Return by Assessees eligible for SSI exemption 10th of the month SSI following the relevant quarter Who is required to file

ER-4

ER-5

Annual Financial Assessees paying duty of Rs One crore Information Statement or more per annum either through PLA or CENVAT credit or both together Information relating to Assessees paying duty of Rs One crore Principal Inputs or more per annum and manufacturing goods under specified tariff headings

Annually, by 30th November of succeeding year Annually, by 30th April of the current year following

ER-6

Monthly return of Assessees required to submit ER-5 10th of receipt and return month consumption of each

ER-7

of Principal Inputs Annual Installed All assessees, except manufacturers of Annually, by 30th Capacity Statement biris and matches without aid of power April of the previous and , reinforced cement concrete pipes year

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.

QUESTIONS RELATED TO THE TOPIC 1. 2. 3. 4. Explain briefly about the contents in Central Excise compliance check list. Can you just brief on some of the forms used in Central Excise? Briefly explain the registration process in central Excise. Which form is used for Annual Financial Information Statement?

Source

: VS Dateys notes

Complied by :Alwin Thomas alwin.here@yahoo.co.in Mob:9846458472