Persons Requiring Excise Registration

Excise duty is a tax which is charged on Manufacturer / Production of goods as well as from Importers of some specified Goods. Excise Duty is generally recognized as:-

• Central Excise: - This is the duty which is collected by central Govt.
• State Excise:- This is collected by Specific state in which the business is located
• Additional Duties on Import:- This is the duty which is collected on import of those items on which Excise is collected if that product was manufactured in India instead of importing it. This duty is in kind of compensatory duty which is collected to compensate the revenue loss caused by import of those goods.

The Central Excise Law & Procedures essentially embody Central Excise Act, 1944, Central Excise Rules, 2002, Cenvat Credit Rules 2004, Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, Central Excise (Determination of Retail Sale Price of Excisable Goods) Rules, 2008, Central Excise (Compounding of Offenses) Rules, 2005, Central Excise (Appeals) Rules, 2001, CESTAT (Procedure) Rules, 1982 and Notifications issued under Central Excise Act, 1944 and the Rules made thereunder.

Every Business which is planning to start a manufacturing unit or planning to import any item from abroad ,need to consult about the excise duty implication on that particulars product. It is always advisable to be certain about the tax implication and its compliance.

For Example the If you want to set a manufacturing plant confirm the duty liability under Central as well as State Excise well in advance before starting the activity.

Factor Excise tax before you start a manufacturing unit.

As mentioned above it is utmost important to factor the excise tax impact due to:-

• Decision on cost of final product
• Decision on selling price of product
• Decision on Manufacturing or Import

Exemption for Small Scale Industry

Considering the importance and for its promotion small scale industries are exempted from paying of excise duty.Any Manufacturing unit which has a turnover of less than 1.5 Cr is exempt from payment of Excise duty.

Separate enlistment is needed in admiration of divided premises (production line, warehouse, goodown and so forth.) aside from in situations where two or more premises are really piece of the same plant (where procedures are between interfaced) yet are isolated by open street, channel or track line. On account of materials, a solitary enlistment will accomplish for all premises recorded in that. Further, a few producers owning apparatus, (for example, force looms) under a typical shed or in as something to be shared premises will be dealt with as a different manufacturing plant each for their particular hardware and there will be no clubbing of their generation/freedom.

Types Of Excise Registration :

• Single Premises: Single Registration is required in case of one premises
• More than Single Premises: If the person has more than one premises requiring registration, separate registration certificate shall be obtained for each of such premises.

Excise is an event based taxes, and taxes is charged once goods are exit from gate of manufacturing plant. The invoice is made on gate pass basis

Excise Registration Procedure/ Process:

• Step 1:- Excise Registration Application to AC/DC [FormA-1(2 copies) and PAN No.] for New Registration/Amendment of the RC of the Unit with the Central Excise department.
• Step 2:- Within 15 days, submit the duly attested hard copy of documents along with A-1 to the department.
• Step 3:- AC/DC will grant Excise Registration Certificate after receipt of application and all documents and due verification premises.