Exemption From Registration under Central Excise

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: