Central Excise is tax on the ‘act of manufacture or production’. It is indirect tax levied by Central government on the activity of manufacturing or production. Central Excise is governed by the Central Excise Act, 1944 and rules.
All goods listed in the Central Excise Tariff Act, 1985 attract Central Excise duty unless specified to the contrary in the Act itself or under any notification issued under the Central Excise Act, 1944 by the appropriate statutory authority.
Central Excise Duty is levied at the rates as are specified in the schedules to the Central Excise Tariff Act, 1985. In some cases, the statutory rates of duty have been lowered or reduced to Nil by the Central Government in terms of Section 5A of the Central Excise Act, 1944.
If person manufacturing any goods in his factory, he has to take the registration of excise as ‘Manufacturer’.
If person dealing in trading of any excisable goods in India, he has to take the registration of excise as ‘Dealers’. There are two types of dealers in Central Excise.
First Stage Dealer: A person purchasing the goods from the Manufacturer and sale to the consumer.
Second Stage Dealer: A person purchasing the goods from the First stage dealer and sale to the consumer.
If person importing any goods from outside India, he has to take the registration of excise as ‘Importers’.
In case of Small Scale Manufacturers where value of clearances are less than Rs. 4 Crores (Rs. 12 Crores in case of jewellers), first clearances of value up to Rs. 1.50 Crores (Rs. 6 Crores in case of jewellers) are exempt from whole of duty.
In accordance with Rule 9 of Central Excise Rules, 2002, below mentioned persons are required to obtain excise registration:
• Every manufacturer of dutiable goods.
• First and second stage dealers desiring to issue Cenvatable invoices.
• Persons holding warehouses for storing non‐duty paid goods.
• Persons who manufacture the excisable goods, which are chargeable to NIL rate of excise duty or are fully exempt from duty by a notification.
• Small scale units availing the exemption based on value of clearances under a notification. However, such units will be required to give a declaration once the value of their clearances crosses Rs.90 lakhs for a financial year. In case of Jewellers, they are required to give such declarations once the value of their clearances crosses Rs. 5.40 lakhs for a financial year.
• Persons manufacturing excisable goods by following the warehousing procedure under the Customs Act, 1962 subject to certain conditions
• The person who carries on wholesale trade or deals in excisable goods (except first and second stage dealer, as defined in Cenvat Credit Rules, 2004)
• Persons who use excisable goods for any purpose other than for processing or manufacture of goods availing benefit of concessional duty exemption notification.
Normal Process Time: 2-15 Days (Subject to providing of all required documents in time from your side, inspector visiting and government processing time)
Our Expert will help you collect all the requisite information & documents
Our Expert will prepare requisite form and get your signature.
The application form with documents will be submitted online and to Excise Dept.
Jurisdicational Inspeector will verify the premises and if found clear will issue Registration Certificate.
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Central Excise Payments
Every Central Excise Registration Holder need to pay Central Excise Duty on monthly basis on or before 6th of the next month. (We can help you calculate correct Central Excise Duty).
Central Excise Returns
An SSI unit is required to file returns on quarterly basis within 20 days from the date of completion of the quarter, but non-SSI units are required to file returns on monthly basis within 10 days from the date of completion of month. (We can help you file Central Excise Returns)
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