Registration Requirements – Manufacturer / Traders etc. - Central Excise Practice Manual (OLD) - Central Excise

Chapter No. 08 REGISTRATION Any person who deals with excisable goods are required to get the premises registered with the Central Excise Department except where the board issues notifications granting exemption to the person from the provisions of registration. Persons requiring registration: According to Rule 9 of the Central Excise Rules 2002 and section 6 of Central Excise Act 1944, the following category of persons are required to register with jurisdictional Central Excise Officer in the Range office having jurisdiction over his place of premises/business: 1. Every manufacturer of excisable goods (including Central/State govt. undertakings) on which excise duty is leviable. 2. First stage or second stage dealers (including manufacturer's depot and importers) desirous of issue of cenvatable invoices. 3. Persons holding private warehouses for storing non-duty paid goods 4. Persons who obtain excisable goods for availing end-use based exemption notification. 5. Exporters manufacturing or processing export goods- by using duty paid inputs and intending to claim rebate of such duty, or by using non-duty paid inputs and exporting the finished export goods; 6. EOU and EPZ units which have interaction with the domestic economy. Exception: Thus EOU's who do not have inter- linkage with domestic economy are continue to be treated as deemed registered i.e. they do not require registration. Registration of Dealers : Dealers who intend to issue Cenvatable Invoices to the buyers (i.e. where buyer wants to avail cenvat credit on goods purchased) need registration. Thus dealers who do not intend to issue Cenvatable invoices are exempt from registration. Registration of manufacturer as a dealer: Manufacturers who intends to carry out trading activity along with the manufacturing activity should obtain registration as dealer separately. Registration procedure: 1. Application for registration or de-registration or amendment of the registration application shall be filed only online on the website www.aces.gov.in, in the forms provided in the website. Applicant for registration shall mandatorily quote Permanent Account Number (PAN) of the proprietor or the legal entity being registered. Government Departments are exempt from the requirement of quoting the PAN in their online application. Applicants other than Government Departments shall not be granted registration in the absence of PAN. Applicant shall quote his e-mail address and mobile number in the requisite column of the application form for communication with the Department. Business Transaction Numbers Business transaction numbers obtained from other Government departments or agencies such as Customs Registration No (BIN No), Import Export Code (IEC) Number, State Sales Tax /(VAT) Number, Central Sales Tax Number, Company Index Number (CIN), Service Tax Registration Number, which have been issued prior to the filing of Central Excise Registration application, shall be filled in the form and for the numbers subsequently obtained, the application shall be amended. Registration Number and Certificate Pending post-facto verification of premises and documents by the authorized Officers, registration application shall be approved by the Deputy Commissioner or Assistant Commissioner within two days of the receipt of duly completed online application form. A Registration Certificate containing registration number shall be issued online and a printed copy of the Registration Certificate which was issued online through the website www.aces.gov.in shall be adequate proof of registration and the signature of the issuing authority is not required on the said Registration Certificate. Submission of documents The applicant shall tender self attested copies of the following documents at the time of verification of the premises: (i) Plan of the factory premises; (ii) Copy of the PAN Card of the proprietor or the legal entity registered; (iii) Photograph and Proof of the identity of the applicant; (iv) Documents to establish possession of the premises to be registered; (v) Bank account details; (vi) Memorandum or Articles of Association and List of Directors; and (vii) Authorization by the Board of Directors or Partners or Proprietor for filing the application by a third party. Physical Verification (i) The authorized officer shall verify the premises physically within seven days from the date of receipt of application through online. Where errors are noticed during the verification process or any clarification is required, the authorized Officer shall immediately intimate the same to the assessee for rectification of the error within fifteen days of the receipt of intimation failing which the registration shall stand cancelled. The assessee shall be given a reason opportunity to represent his case against the proposed cancellation, and if it is found that the reasons given by the assessee are reasonable, the authorized Officer shall not cancel the registration to the premises. (ii) On the physical verification of the premises, if it is found to be non-existent, the registration shall stand cancelled. The assessee shall be given a reason opportunity to represent his case against the proposed cancellation, and if it is found that the reasons given by the assessee are reasonable, the authorized Officer shall not cancel the registration to the premises recording the complete and correct address. Transfer of Business or acquisition of factory Where a registered person transfers his business to another person, the transferee shall get himself registered afresh. Where an applicant has acquired an old factory from a Bank or a Financial Institution, he shall get himself registered afresh. Change in Constitution Where a registered person is a firm or a company or association of persons, then in the event of any change in the constitution of the firm leading to change in PAN, he shall get himself registered afresh. In other cases of change in constitution of business, where there is no change in PAN, the same shall be intimated to the jurisdictional Central Excise Officer within thirty days of such change by way of amendment to the registration details to be carried out online in website www.aces.gov.in and this will not result in any change in the registration number. De-Registration Every registered person, who ceases to carry on the business for which he is registered, shall de-register himself by making an online application in the website www.aces.gov.in, in the form specified in the website. Where there are no dues pending recovery from the assessee, application for de-registration shall be approved within thirty days from the date of filing of online declaration and the assessee shall be informed, accordingly. Cancellation of Registration A registration certificate granted under rule 9 may be cancelled after giving a reasonable opportunity to the assessee to represent his case against the proposed cancellation by the Deputy Commissioner or Assistant Commissioner of Central Excise, in any of the following situations, namely:- (i) where on verification , the premises proposed to be registered is found to be non-existent; (ii) where the assessee does not respond to request for rectification of error noticed during the verification of the premises within fifteen days of intimation; (iii) where there is substantial mis-declaration in the application form; and (iv) where the factory has closed and there are no dues pending against the assessee. (Refer NOTIFICATION No. 7/2015-Central Excise (N.T.), dated 01st March, 2015 w.e.f. 01-03-2015 ) 2. Separate registration is required in respect of separate premises (and for each depot). Exception : - Single registration in cases where two or more premises are actually part of the same factory but are segregated by public road, canal or railway line to be decided by Principal Commissioner / Commissioner of central excise based on the following factors: Interlinked process, or - Common raw materials common electricity, or labour force, or administration, or sales tax regn. no., or any other factor Validity of registration Certificate: 1. In case of individual or proprietorship firm, it ceases to be valid if that person dies or the proprietor changes. 2. In partnership firm, death of partner will not invalidate the registration provided the surviving partners carry on the same business either in the same name or in the changed name. 3. In limited co., death of the director who has signed the application will not invalidate the registration as it is issued in the name of the company. Penalty for non-registration: Non-registration leads to heavy penalty as it amounts to offence of Central Excise Rules. Penalty upto duty of contravening goods or ₹ 2,000 whichever is higher and imprisonment upto 7 years (minimum 6 months) can be imposed. In addition goods can be confiscated. Exemption from Registration: Rule 9(2) of central Excise authorizes the Board to issue the notification for giving exemption from registration. Following are exempt from registration: 1. Persons who manufacture excisable goods that are unconditionally fully exempt from duty, subject to the declaration to be made in the specified form. However such declaration is required to be filed only once and not every year. 2. SSI units availing exemption based on value of clearances i.e. whose turnover is less than the SSI exemption limit. However they need to need give declaration in the specified form once the value of their clearances reach 90 lakhs. 3. In case the manufacturer gets the work done on job work basis, job worker need not require to get registered if the principal manufacturer undertakes to discharge the duty liability. However, the principal manufacturer can be exempted from registration if: He authorizes actual manufacturer to comply with all excise procedural formalities. Agrees to furnish information regarding selling price for determination of Assessable value. 4. Persons manufacturing Excisable goods under Customs Warehousing Procedures subject to the following conditions: Such excisable goods including the waste and any other intermediary arising from the process of manufacture under the Customs Bond (EOU/STP etc.) are either destroyed or exported out of the country to the satisfaction of AC/DC of customs, The manufacturer shall file a declaration in triplicate in the specified form for claiming exemption, and They should not claim any duty drawback or rebate on duty of excise paid on the raw materials used in the manufacture of the goods. 5. The person who carries on wholesale trade or deals in excisable goods (except first and second stage dealer) who does not issue Cenvatable invoices i.e. who is not a registered dealer. 6. Users of excisable goods are exempt from registration for any purpose other than for processing or manufacture of goods availing benefit of concessional rate of duty exemption notification. 7. Unit in SEZ/EPZ or a hundred per cent EOU appointed under the customs act (other than having dealings with DTA) is exempt from registration as they are deemed to be registered for the purpose of Rule 9. However they are not deemed to be registered if they procures/removes excisable goods from/to domestic tariff area. 8. where a godown or retail outlet of a Duty Free Shop is appointed or licensed under the provisions of sections 57 or 58 of the Customs Act, 1962 (52 of 1962) , as the case may be, such godown or retail outlet shall be deemed to be registered as warehouse under rule 9 of the Central Excise Rules, 2002.