Exemption From Registration under Central Excise
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ØExemption from Registration:
As per Rue 9 of Central Excise Rules, every person who
1. Produces,
2. Manufactures,
3. carries on trade,
4. Holds private store-room or warehouse or
5. Otherwise uses
Excisable goods shall get registered.
Each manufacturer, unless exempted from provisions of registration, has to obtain registration, even if he is exempt from duty. Exemption from excise duty does not mean automatic exemption from registration.
Provisions of exemption and registration are independent of each other. Registration and compliance of following of excise procedures is necessary even if a product is exempt from duty, unless exemption from registration has been granted under rule 9(2).
Rule 9(2) of central excise rulesauthorizes Board to grant exemption from registration in certain cases. Under their powers, Notification No. 36/2001-CE (NT) grants exemption from registration. Following are exempt from registration under above notification:
1. Manufacturer whose goods are chargeable to NIL RATE of duty or Fully Exempt from duty.
Condition for Exemption: Declaration in prescribed form is made.
2.SSI units availing exemption based on value of clearance, whose turnover is less than the SSI exemption limit.
Condition for Exemption: Declaration in prescribed form is made. However a SSI unit need not even file declaration if AGGREGATE VALUE OF CLEARANCES (AVC panerai replica) are up to Rs. 90 lakhs during the immediately preceding financial year.
3.Raw material supplier who gets his goods manufactured from other person (job-worker).
Condition for Exemption: A). Raw material supplier authorizes job-worker to comply with all procedural formalities and to furnish all information for enabling determination of value. B). Job-worker agrees to discharge all the liabilities. C). In simple words job worker is not availing the benefit of Exemption Notification 214/86 i.e. paying duty at his end.
4.Persons manufacturing Excisable longines replica watches goods under customs warehousing Procedures, if all their products are exported.
5.Person who carries on wholesale trade or deals in excisable goods who does not issue cenvatable Invoice i.e. who is not a registered dealer. In simple words Trader of Excisable goods.
Condition of Exemption: Trader shall not be a -FIRST STAGE DEALER
-SECOND STAGE DEALER, as defined in the Cenvat credit Rules, 2004.
6.Users of Excisable goods
7.A unit in SEZ.
ØExample: REGISRATION REQUIREMENT FOR SSI UNIT:
Year Turnover (R$ IN LAKHS)
2011-12(New factory) 45
2012-13 100
2013-14 250
Solution:
|
YEAR |
TURNOVER |
REGISTRATION |
DECLARATION FILING |
|
2011-12 |
45 LAKHS |
Not required( as final product is exempted from duty) |
Not required(as in PY 2010-11 aggregate value of clearances is not exceeding Rs. 90 lakhs—taking FY. 2011-12 as the first year of operation.) |
|
2012-13 |
100 LAKHS |
Not required( as final product is exempted from duty) |
Not required(as in PY 2011-12 aggregate value of clearances is not exceeding Rs. 90 lakhs. |
|
2013-14 |
250 LAKHS |
Beginning of year– Not required (as the final product is exempted from duty)
As and Whenassessee is crossing the limit of 150 lakhs, he shall take registration as his product becomes dutiable after crossing limit of Rs 150 lakhs. |
Beginning of year- Required ( as in PY. 2012-13 aggregate value of clearances has exceeded Rs. 90 lakhs.) |
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