Some procedures are basic, which every assessee is required to follow. Besides, some procedures are required
to be followed as and when required.
(1) 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.
(2) Manufacturer is required to maintain Daily Stock Account (DSA) of goods manufactured, cleared and in stock. [Rule 10 of Central Excise Rules]
(3) Goods must be cleared under Invoice of assessee , duly authenticated by the owner or his authorised agent. In case of cigarettes, invoice should be countersigned by Excise officer. [Rule 11 of Central Excise Rules]
(4) 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 monthly basis by 15th/ 16th of following month. Assessee paying duty through PLA more than Rs. 50 lakhs per annum is required to make e-payment only [Rule 8].
(5) 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.
(6) Assessees 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].
(7) Specified assessees are required to submit Information relating to Principal Inputs every year before 30th April in form ER-5, to Superintendent of Central Excise. Return for 2004-05 was required to be submitted by 31-12-2004 [rule 9A(1) to Cenvat Credit rules inserted w.e.f. 25-11-2004]. 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 inserted w.e.f. 25-11-2004]. Only assessees 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 assessees manufacturing those products, only assessees paying duty of ` one crore or more through PLA (current account) are required to submit the return.
(8) Assessee 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 inserted w.e.f. 25-11-2004]. Only those assessees who are
required to submit ER-5 return are required to submit ER-6 return.
(9) 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)].
(10) Inform change in boundary of premises, address, name of authorised person, change in name of
partners, directors or Managing Director in form A-1.
These are core procedures which each assessee has to follow. There are other procedures which are not
Non-core procedures – The non-core procedures are as follows : –
(a) Export without payment of duty or under claim of rebate [Rules 18 and 19 of Central Excise Rules]
(b) Receipt of goods for repairs / reconditioning [Rule 16 of Central Excise Rules]
(c) Receipt of Goods at concessional rate of duty for manufacture of Excisable Goods.
(d) Payment of duty under Compounded Levy Scheme
(e) Provisional Assessment [Rule 7 of Central Excise Rules]
(f) Warehousing of goods.
(g) Appeals and settlement.
Invoice for removal of final products
Rule 11(1) of Central Excise Rules provides that excisable goods can be removed from factory or warehouse
only under an ‘Invoice’ signed by owner or his authorised agent. In case of cigarettes, invoice shall be countersigned by Inspector. Invoice should bear serial number and should be in triplicate. As per Rule 11(2) of Central Excise Rules, Invoice shall contain –
(a) Registration Number
(b) Address of jurisdictional Central Excise Division.
(c) Name of consignee
(d) Description and classification of goods
(e) Time and date of removal
(f) Mode of transport and vehicle registration number
(g) Rate of duty
(h) Quantity and Value of goods
(i) Duty payable on the goods.
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.
• Excisable Goods should be exported under cover of Invoice and ARE-1 form.
• 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.
• Export to Nepal/Bhutan are required to be made on payment of excise duty.
• EOU has to issue CT-3 certificate for obtaining inputs without payment of excise duty.
Bringing goods for repairs, re-making etc.
• Duty paid goods can be brought in factory for being re-made, refined, reconditioned or for any other reason under rule 16.
• The goods need not have been manufactured by assessee 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
• 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)].
Receipt of Goods at concessional rate of duty
Some users of excisable goods can obtain goods at nil or lower rate of duty, subject to certain conditions. In
other words, the exemption is based on end use. If the buyer is entitled to obtain excisable goods at nil or
concessional rate of duty, he is required to follow prescribed proceure. The provisions are contained in Central
Excise (Removal of Goods at Concessional Rate for Manufacture of Excisable Goods) Rules, 2001.
Returns to be filed
Form of Return Description Who is required to file
|Form of Return||Description||Who is required to file||Time Limit|
|ER-1 [Rule 12(1) of Central|
|Monthly Return by large units||Manufacturers not eligible for|
|10th of following month|
|ER- 2 [Rule 12(1) of Central|
|Return by EOU||EOU units||10th of following month|
|ER-3 [Proviso to Rule 12(1)|
of Central Excise Rules
|Quarterly Return by SSI||Assessees availing SSI|
|20th of next month of the quarter|
|R-4 [Rule 12(1) of Central|
I n f o r m a t i o n
|Assesses paying duty of Rs.. One|
crore or more per annum
|Annually by 30th|
November of succeeding
|ER-5 [Rule 9A(1) and 9A(2)|
of Cenvat Credit Rules
to Principal Inputs
|Assessees paying duty of Rs. one|
crore or more per annum thorugh PLA and manufacturing goods under specified tariff headings
|Annually, by 30th April for|
the current year (e.g.
return for 2005-06 is to be
filled by 30.4.2005].
|ER-6 [Rule 9A(3) of Cenvat|
|Monthly return of receipt and consumption of each of|
|Assessees required to submit|
|10th of following month|