Procedural issues related to Central Excise Duty on Pens - Regarding. - Central Excise - F. No. 332/12/2011-TRU

Instruction Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi dated 4-9-2011 Subject : Procedural issues related to Central Excise Duty on Pens - Regarding. Kindly refer to the representations, dated the 25th April 2011 and 21st June 2011 from your Association on the above mentioned subject. The issues raised therein have been examined. In order to impart more clarity and better comprehension, point wise reply is being given below : Issue 1 :- Simplification of procedure for all assessees paying 1% Central Excise Duty S. No. Issue/Query Clarification 1. Whether Registration is allowed on the basis of DIGITAL Certificates (Digitally Signed) which can be downloaded and be accepted as Original whereby it reduces the registration time and helps the new registrants? Presently digitally signed registration certificate are not being issued. However, the request is being forwarded to Directorate of Systems for examining the feasibility of the same. 2. Whether an assessee can clear/sell/remove excisable goods immediately after online registration is completed and central excise registration number is received. (Even before physical/Online Digital Certificate in original is pending/ not received.)? The excisable goods can be removed from the factory or the warehouse immediately after the Central Excise registration number is received. 3. Whether an assessee has to use a specific format of tax invoice? The Central Excise Invoices do not have to be issued in any specific format. No such format has been prescribed. However, the invoice under which the excisable goods are cleared from the factory or the warehouse must be signed by the owner of the factory or his authorized agent and must fulfill the requirements prescribed in Rule 11 of the Central Excise Rules, 2002 as under : (i) The invoice must be prepared in triplicate and the original copy be marked as ORIGINAL FOR BUYER, the duplicate copy be marked as DUPLICATE FOR TRANS-PORTER and the triplicate copy being marked as TRIPLICATE FOR ASSESSEE; (ii) The invoice must be serially numbered, contain the registration number, address of the concerned Central Excise Division, name of the consignee, description, classification, time and date of removal, mode of transport and vehicle registration number, rate of duty, quantity and value of goods and the duty payable thereon; (iii) Only once invoice book shall be in use at a time unless otherwise allowed by the AC/DC Central Excise; (iv) Before making use of the invoice book serial numbers of the same have to be informed to the jurisdictional Superintendent Central Excise. 4. Whether an assessee who is covered under Central Excise duty rate of 1% need not maintain any specific records like RG 23 Registrars, PLA register etc? Rule 10 of the Central Excise Rules, 2002 prescribes that every Central Excise assessee is required to maintain proper records on a daily basis in a legible manner indicating the particulars regarding description of goods produced for manufactured, opening balance, quantity produced or manufactured, inventory of goods, quantity removed, assessable value, amount of duty payable and particulars regarding duty actually paid. However, PLA or RG23A registers etc. are not required to be maintained now. 5. Whether the payment of duty and filing of Return is on monthly basis or quarterly basis? Facility of quarterly returns has been extended for the units engaged in manufacture of goods specified in Notification No. 1/2011-C.E . Notification No. 8/2011-C.E. (N.T.), dated 24th March, 2011 refers. A simplified proforma ER-8 has been notified on 30th June 2011 for this purpose. 6. Whether affixing brand name of such companies, products, logo etc. which are for free distribution, qualify for branded goods and can the manufacturer claim exemption under SSI notification number 8/2003 for unbranded goods? Goods which exclusively bear the name or logo of companies, products etc. which are for free distribution, publicity or promotion of some other goods, do not get treated as branded goods for the purposes of SSI exemption as long as they do not bear any brand name. for instance, a ball-point pen bearing the name of a pharmaceutical company or product alone and not bearing any brand name of its own (brand name of the pen itself) would continue to be an unbranded product. Such manufacturers can therefore claim benefit of exemption notification 8/2003-C.E . for such unbranded goods. 7. Whether for the export of goods covered under 1% Central Excise Tariff, ARE-1 procedure has to be complied with? Simplified procedure for exports is available for units exempted from paying duty by notification granting exemption based on volume of clearances for home consumption. Such units only are exempted from complying ARE-1 procedure. Issue 2 :- CVD on fountain pen ink ball pen ink should be reduced from 5% to 1% The domestic producers of fountain pen inks and ball pen inks have the option of paying duty @ 1% without availing CENVAT facility or paying 5% duty with CENVAT Credit. Inks on which the duty @ 5% is paid with the CENVAT facility are at par with the imports in terms of duty payment as the imports also suffer 5% CVD. Inks on which duty @ 1% is paid without availing CENVAT facility suffer an effective duty which is more than 1% as the CENVAT credit for the duty already paid remains unutilized. In such a scenario, extending 1% CVD benefit on imports of fountain pen inks and ball pen inks is not feasible. 3. It is hoped that these clarifications will help better compliance and trade facilitation. Difficulties, if any, may kindly be brought to my notice immediately. [F. No. 332/12/2011-TRU]