Central Excise

Central Excise is a duty on the manufacture or production of all goods in India. Excisable goods means goods which are movable and marketable and listed in the Schedules to the Central Excise Act. A process is deemed as manufacture if - the process results in a new and different article with distinctive name, character or use. The term manufacture or production includes both incidental and ancillary processes. In addition to the above, certain other activities are deemed to be manufacture even though the process may not satisfy the condition of Manufacture.

The following are deemed to be manufacture as per Central Excise Act;

  •   Packing or repacking of goods in a unit container
  •   Labeling or re-labeling of containers including the declaration or alteration of retail sale price on it
  •   Adoption of any other treatment on the goods to render the product marketable to the consumer

Consequence of Non-Registration of Central Excise

A manufacturer who is obligated to get registered, if does not get registered, then penalty will be imposed under the Central Excise Rules. This penalty will be equal to the amount of duty unpaid or Rs.10,000/- whichever is higher. In addition to the penalty, the goods manufactured without registration can also be seized. Prosecution under the Central Excise Act imprisonment upto 7 years can also be imposed for non-registration.

Who should register Central Excise?

The following category of persons are required to register with Central Excise

  •   Every manufacturer of excisable goods on which excise duty is Payable.
  •   First and second stage dealers (including manufacturer's depots and importers) desiring to issue Cenvatable invoices.
  •   Persons holding warehouses for storing non-duty paid goods.
  •   Persons who obtain excisable goods for availing end use based exemption. /li>
  •   Exporter-manufacturers under rebate/bond procedure; and Export Oriented Units, which have interaction with the domestic economy (through DTA sales or procurement of duty free inputs).

Who are exempted from registration of Central Excise ?

  •   Manufacturer of fully exempted or NIL Rate goods
  •   SSI Units having turnover less than Rs150 Lakhs
  •   Principal Manufacturer, If Job Worker agrees to discharge liability
  •   Job Worker manufacturing products enlisted under Chapters 61 & 62 of Excise Act.
  •   Manufacturer under Customs Bonded Warehouse
  •   Dealers other than First Stage and Second Stage Dealer
  •   Users of excisable goods
  •   Units in Special Economic Zone.
  •   Economic Oriented Unit having no linkage with DTA
  •   Godown or retail outlet of duty paid shop

Documents required for Central Excise registration

Proprietorship

  • PAN copy of the proprietor
  • Proof of address of the proprietor.
  • Ground plan of factory (Plan should describe the boundaries of premises to be registered)
  • General power of attorney ( In favour of agent, If authorized agent is appointed .)
  • Address proofs of the factory premises like:
    • Copy of registered property document along with electricity bill, water bill, tax receipt etc., if factory is owned
    • Copy of rental or Lease agreement along with electricity bill, water bill, tax receipt etc., if factory is taken on lease
    • 'NOC ' from the premises owner and last paid rent receipt , if available.
  • Registration Certificate under any other laws like sales tax, IE code etc, if any

Partnership And Company

  • PAN card copy of the company/firm
  • PAN card copy of authorized signatory
  • Ground plan of factory (Plan should describe the boundaries of premises to be registered)
  • List of directors/partners
  • Residence proof of directors/partners
  • Memorandum and Articles of Association/Partnership deed
  • General power of attorney ( In favour of agent, If authorized agent is appointed .)
  • PAN card copy of directors/partners other than signatories
  • Address proofs of the factory premises like:
    • Copy of registered property document along with electricity bill, water bill, tax receipt etc., if factory is owned
    • Copy of rental or Lease agreement along with electricity bill, water bill, tax receipt etc., if factory is taken on lease
    • 'NOC ' from the premises owner and last paid rent receipt , if available.
  • Registration Certificate under any other laws like sales tax, IE code etc, if any

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