Central Excise Procedures

• Ajay Babu Bandi

Practising Chartered Accountant

M.Com, FCMA,ACA,IFRS(Certified)

RegistrationEvery Manufacturer of excisable goods is

required to get his premises registered under the Central Excise Law

Registration is also required for every prescribed person who carries on trade or holds private store-room or warehouse or otherwise uses excisable goods

Registration- -exception A manufacturer is exempt from registration if the

goods manufactured by him attract NIL rate of

duty

Or if the goods are exempt from the whole of the

duty

SSI (availing benefit of SSI exemption

notification)

But submit a declaration if the value of

clearances exceed ` 90 lakhs

Registration-NumberThe Assessee / Manufacturer is issued

a 15 digit PAN based alpha numeric

Registration Number and a Registration

Certificate

No renewal required

Payment of excise duty

Duty may be paid in cash through the Account Current, popularly known as PLA(Personal Ledger Account)

Duty can also be paid by utilizing CENVAT credit balance available at the end of the month

Assessee who have paid Excise Duty

more than or equal to ` 10 lakhs (including

amount paid and CENVAT credit) are

mandatorily required to pay the duty

Electronically through internet banking

Failure to pay the amount of duty within the

due date attracts interest at 18% per

annum on the outstanding amount

Invoice - An invoice is the document

under the cover of which the excisable

goods are to be cleared by the

manufacturer

Numbering - Invoice should be serially

numbered

It shall commence from 1st April every year

Contents - Registration number, Address

of the excise division, Name of the

consignee, Description, Classification,

Time and Date of Removal, Rate of Duty

,Quantity, Mode of Transport , Vehicle

Registration number and Value of Goods

and the Duty payable thereon

Number of CopiesOriginal for BUYER

DUPLICATE for Transporter

TRIPLICATE for Assessee

Return Filing Procedures