Excise Duty
Central Excise Act, 1944

General Rate of Excise Duty

12.5%( increased from 12% to 12.5% w.e.f. 01.03.2015)

Education Cess and Secondary and Higher Education Cess

Exempted(w.e.f. 01.03.2015)

Charging Section throws out the propositions:

Must be Manufacture
Manufacture must be in India
Manufacture must result in "goods"
The resultant goods must be “exciseable goods”

The liability to pay excise duty has been casted on every person:-

  • who produces or manufactures any excisable goods
  • who stores such goods in a warehouse
Date for determination of duty and tariff
S.No. In case of removal of

Any excisable goods (other than khandsari molasses)

Applicable rate of duty/tariff value shall be the rate/value in force on the
date when such goods are removed from a factory or a warehouse, as the case may be

khandsari molasses

Applicable rate of duty/tariff value shall be the rate/value in force on the
Date of receipt of such molasses in the factory of the procurer of such molasses (since in case of khandsari molasses, duty is paid by the procurer and not by the manufacturer)

Excisable goods cleared for captive consumption

Applicable rate of duty/tariff value shall be the rate/value in force on the
The date on which the goods are issued for such use (since the date of removal of such goods shall be the date on which the goods are issued for such use-Explanation to rule 5)
REGISTRATION
Who requires Registration in Excise

Every manufacturer of excisable goods

Applicable Form
Form A1- All persons except certain textile processors/cheroot manufacturers
Form A2 - Power look weavers/Hand processors/dealers of yarn and fabrics and manufacturers of readymade garments
Form A3 - Manufacturers of hand rolled cheroots of tobacco falling under sub-heading 2402.00 of Central Excise Tariff.
Mode of Registration
Online
Penalty for non registration
If the manufacturer or producer who is required to take registration fails to apply for registration, a penalty up to duty of contravening goods or Rs.10,000, whichever is higher, can be imposed and contravening goods can be confiscated. Moreover, imprisonment up to 7 years (minimum 6 months) can be imposed (Rule 25 of Central Excise Rules, 2002 and Section 9 of The Central Excise Act, 1944)
Documents required for registration (self attested copies)
  • (A) Plan of the factory premises
  • (B) Copy of the PAN Card of the proprietor or the legal entity registered
  • (C) Photograph and Proof of the identity of the applicant
  • (D) Documents to establish possession of the premises to be registered
  • (E) Bank account details
  • (F) Memorandum or Articles of Association and List of Directors
  • (G) Authorization by the Board of Directors or Partners or Proprietor for filing the application by a third party.

First and second stage dealers desiring to issue cenvatable invoices

Applicable Form
Form A1- All persons except certain textile processors/cheroot manufacturers
Form A2 - Power look weavers/Hand processors/dealers of yarn and fabrics and manufacturers of readymade garments
Form A3 - Manufacturers of hand rolled cheroots of tobacco falling under sub-heading 2402.00 of Central Excise Tariff.
Mode of Registration
Online
Penalty for non registration
If the manufacturer or producer who is required to take registration fails to apply for registration, a penalty up to duty of contravening goods or Rs.10,000, whichever is higher, can be imposed and contravening goods can be confiscated. Moreover, imprisonment up to 7 years (minimum 6 months) can be imposed (Rule 25 of Central Excise Rules, 2002 and Section 9 of The Central Excise Act, 1944)
Documents required for registration (self attested copies)
  • (A) Plan of the factory premises
  • (B) Copy of the PAN Card of the proprietor or the legal entity registered
  • (C) Photograph and Proof of the identity of the applicant
  • (D) Documents to establish possession of the premises to be registered
  • (E) Bank account details
  • (F) Memorandum or Articles of Association and List of Directors
  • (G) Authorization by the Board of Directors or Partners or Proprietor for filing the application by a third party.

Persons holding warehouses for storing non duty paid goods

Applicable Form
Form A1- All persons except certain textile processors/cheroot manufacturers
Form A2 - Power look weavers/Hand processors/dealers of yarn and fabrics and manufacturers of readymade garments
Form A3 - Manufacturers of hand rolled cheroots of tobacco falling under sub-heading 2402.00 of Central Excise Tariff.
Mode of Registration
Online
Penalty for non registration
If the manufacturer or producer who is required to take registration fails to apply for registration, a penalty up to duty of contravening goods or Rs.10,000, whichever is higher, can be imposed and contravening goods can be confiscated. Moreover, imprisonment up to 7 years (minimum 6 months) can be imposed (Rule 25 of Central Excise Rules, 2002 and Section 9 of The Central Excise Act, 1944)
Documents required for registration (self attested copies)
  • (A) Plan of the factory premises
  • (B) Copy of the PAN Card of the proprietor or the legal entity registered
  • (C) Photograph and Proof of the identity of the applicant
  • (D) Documents to establish possession of the premises to be registered
  • (E) Bank account details
  • (F) Memorandum or Articles of Association and List of Directors
  • (G) Authorization by the Board of Directors or Partners or Proprietor for filing the application by a third party.

Persons who obtain excisable goods for availing end use based exemption

Applicable Form
Form A1- All persons except certain textile processors/cheroot manufacturers
Form A2 - Power look weavers/Hand processors/dealers of yarn and fabrics and manufacturers of readymade garments
Form A3 - Manufacturers of hand rolled cheroots of tobacco falling under sub-heading 2402.00 of Central Excise Tariff.
Mode of Registration
Online
Penalty for non registration
If the manufacturer or producer who is required to take registration fails to apply for registration, a penalty up to duty of contravening goods or Rs.10,000, whichever is higher, can be imposed and contravening goods can be confiscated. Moreover, imprisonment up to 7 years (minimum 6 months) can be imposed (Rule 25 of Central Excise Rules, 2002 and Section 9 of The Central Excise Act, 1944)
Documents required for registration (self attested copies)
  • (A) Plan of the factory premises
  • (B) Copy of the PAN Card of the proprietor or the legal entity registered
  • (C) Photograph and Proof of the identity of the applicant
  • (D) Documents to establish possession of the premises to be registered
  • (E) Bank account details
  • (F) Memorandum or Articles of Association and List of Directors
  • (G) Authorization by the Board of Directors or Partners or Proprietor for filing the application by a third party.

Importer who issues an invoice on which CENVAT credit can be taken.

Applicable Form
Form A1- All persons except certain textile processors/cheroot manufacturers
Form A2 - Power look weavers/Hand processors/dealers of yarn and fabrics and manufacturers of readymade garments
Form A3 - Manufacturers of hand rolled cheroots of tobacco falling under sub-heading 2402.00 of Central Excise Tariff.
Mode of Registration
Online
Penalty for non registration
If the manufacturer or producer who is required to take registration fails to apply for registration, a penalty up to duty of contravening goods or Rs.10,000, whichever is higher, can be imposed and contravening goods can be confiscated. Moreover, imprisonment up to 7 years (minimum 6 months) can be imposed (Rule 25 of Central Excise Rules, 2002 and Section 9 of The Central Excise Act, 1944)
Documents required for registration (self attested copies)
  • (A) Plan of the factory premises
  • (B) Copy of the PAN Card of the proprietor or the legal entity registered
  • (C) Photograph and Proof of the identity of the applicant
  • (D) Documents to establish possession of the premises to be registered
  • (E) Bank account details
  • (F) Memorandum or Articles of Association and List of Directors
  • (G) Authorization by the Board of Directors or Partners or Proprietor for filing the application by a third party.

Exporter - manufacturer under rebate/bond procedure; Export Oriented Units which have interaction with the domestic economy either through DTA sales or procurement of duty free inputs.

Applicable Form
Form A1- All persons except certain textile processors/cheroot manufacturers
Form A2 - Power look weavers/Hand processors/dealers of yarn and fabrics and manufacturers of readymade garments
Form A3 - Manufacturers of hand rolled cheroots of tobacco falling under sub-heading 2402.00 of Central Excise Tariff.
Mode of Registration
Online
Penalty for non registration
If the manufacturer or producer who is required to take registration fails to apply for registration, a penalty up to duty of contravening goods or Rs.10,000, whichever is higher, can be imposed and contravening goods can be confiscated. Moreover, imprisonment up to 7 years (minimum 6 months) can be imposed (Rule 25 of Central Excise Rules, 2002 and Section 9 of The Central Excise Act, 1944)
Documents required for registration (self attested copies)
  • (A) Plan of the factory premises
  • (B) Copy of the PAN Card of the proprietor or the legal entity registered
  • (C) Photograph and Proof of the identity of the applicant
  • (D) Documents to establish possession of the premises to be registered
  • (E) Bank account details
  • (F) Memorandum or Articles of Association and List of Directors
  • (G) Authorization by the Board of Directors or Partners or Proprietor for filing the application by a third party.
Exemption from Registration
Exemption from Registration

Persons who manufacture the excisable goods, which are chargeable to nil rate of excise duty or are fully exempt from duty by a notification

Conditions
Subject to the declaration to be made in the specified declaration form.

Small scale units availing the slab exemption based on value of clearances under a notification.

Conditions
Such units will be required to give a declaration in a specified form once the value of their clearances touches Rs.90 lakhs.

In respect of final products falling under Chapter 61 or 62 the job-worker need not get registered

Conditions
if the principal manufacturer undertakes to discharge the duty liability

Persons manufacturing excisable goods by following the warehousing procedure under the Customs Act, 1962 subject to the conditions

Conditions
  • (A) the said excisable goods and any intermediary or by-product including the waste and refuse arising during the process of manufacture of the said goods under the Customs Bond are either destroyed or exported out of the country to the satisfaction of the Assistant Commissioner of Customs or the Deputy Commissioner of Customs, in charge of the Customs Bonded Warehouse
  • (B) the manufacturer shall file a declaration in the specified form in triplicate for claiming exemption under this notification
  • (C) no drawback or rebate of duty of excise paid on the raw materials or components used in the manufacture of the said goods, shall be admissible.

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).

Conditions
Not Applicable

A hundred per cent Export Oriented Undertaking or a unit in Export Processing Zone or a unit in Special Economic Zone licensed or appointed, as the case may be, under the provisions of the Customs Act, 1962. These units are deemed to be registered for the purpose of rule 9.

Conditions
However, such 100% EOU or a unit in EPZ shall not be deemed to be registered if such undertaking or unit procures excisable goods from the domestic tariff area or removes excisable goods to the domestic tariff area.

Persons who use excisable goods for any purpose other than for processing or manufacture of goods availing benefit of exemption extending concessional rate of duty.

Conditions
Not Applicable

A godown or retail outlet of a Duty Free Shop appointed/licenced under section 57 or 58 of Customs Act, 1962

Conditions
Such godown/retail outlet are deemed to be registered as warehouse

Mines engaged in the production of specified goods namely
• Coal, briquettes, ovoids and similar solid fuels manufactured from coal
• Lignite, whether or not agglomerated, excluding jet
• Peat (including peat litter), whether or not agglomerated Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon
• Tar distilled from coal, from lignite or from peat and other mineral tars, whether or not dehydrated or partially distilled, including reconstituted tars

Conditions
When premises from where centralised billing/accounting is done is registered

Manufacturing units engaged in the manufacture of recorded smart cards falling under sub-heading 8523

Conditions
When premises from where centralised billing is done is registered

Every job worker who undertakes job work in relation to goods falling under Chapter 61, 62 or 63 of Central Excise Tariff

Conditions
If the person on whose behalf job worker is doing his job pays the excise duty leviable on the said goods and comply with all procedural formalities

Unregistered premises used solely for affixing lower ceiling prices on pharmaceutical products to comply with Drugs (Prices Control) Order, 2013

Conditions
Subject to the conditions specified in Notification No. 22/2013 CE dated 29.07.2013
RETURNS (ELECTRONICALLY)
Forms of Returns

ER-1: Rule 12(1) CER,2002

Category of Assessee
Every assessee Except SSI
Periodicity
Monthly
Due date
By 10th day of the following month
Penalty for non filling of returns
Rs.5000/-
Late fee for belated filing returns (return is submiited after due date)
Rs.100 per day subject to a maximum of Rs.20,000/-for the period of delay in submission of each such return or statement

Statement for pan masala manufacturers: First proviso of Rule 12(1)

Category of Assessee
An assessee, manufacturing pan masala falling under tariff item 2106 90 20 or pan masala containing tobacco falling under tariff item 2403 99 90
Periodicity
Monthly
Due date
Alongwith the monthly return
Penalty for non filling of returns
No Data
Late fee for belated filing returns (return is submiited after due date)
Rs.100 per day subject to a maximum of Rs.20,000/-for the period of delay in submission of each such return or statement

ER-2 : Rule 17(3) CER,2002

Category of Assessee
EOUs
Periodicity
Monthly
Due date
By 10th day of the following month
Penalty for non filling of returns
Rs.5000/-
Late fee for belated filing returns (return is submiited after due date)
Rs.100 per day subject to a maximum of Rs.20,000/-for the period of delay in submission of each such return or statement

ER-3 : Second proviso to Rule 12(1) CER,2002

Category of Assessee
assessee manufacturing processed yarn, unprocessed fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 of First Schedule to the Tariff Act
Periodicity
Quarterly
Due date
By 20th day of the month following the respective quarter
Penalty for non filling of returns
No Data
Late fee for belated filing returns (return is submiited after due date)
Rs.100 per day subject to a maximum of Rs.20,000/-for the period of delay in submission of each such return or statement

ER-3 : Third proviso to Rule 12(1) CER,2002

Category of Assessee
Assessees eligible for SSI concession (even if he does not avail the concession)
Periodicity
Quarterly
Due date
By 10th day of the month following the respective quarter
Penalty for non filling of returns
Rs.5000/-
Late fee for belated filing returns (return is submiited after due date)
No Data

ER-4 Annual Financial Information Statement(AFI) : ( Not Required to file from 01.04.2016)

Category of Assessee
Assessees paying duty of Rs.1 crore or more per annum either through PLA or CENVAT or both together
Periodicity
Annually
Due date
By 30th November of the succeeding year
Penalty for non filling of returns
Rs.5000/-
Late fee for belated filing returns (return is submiited after due date)
No Data

ER-5 : Declaration with regard to principal inputsRule 9A(1) and 9A(2) of the CENVAT Credit Rules, 2004 ( Not Required to file from 01.04.2016)

Category of Assessee
Assesses paying duty of Rs.1 crore or more per annum (either through PLA or CENVAT or both together) and manufacturing goods under specified tariff headings
Periodicity
Annually
Due date
By 30th April of the current year (e.g. declaration for 2013-14 is to be filed by 30.4.2013).
Penalty for non filling of returns
Rs.5000/-
Late fee for belated filing returns (return is submiited after due date)
No Data

ER-6 Rule 9A(3) of CCR Return of principal inputs(Not Required to file from 01.04.2016)

Category of Assessee
Assessees required to submit ER-5 declaration
Periodicity
Monthly
Due date
By 10th day of the following month
Penalty for non filling of returns
Rs.5000/-
Late fee for belated filing returns (return is submiited after due date)
No Data

ER-7 Annual Installed Capacity Statement (AIC) ( Not Required to file from 01.04.2016)

Category of Assessee
All assessees, except manufacturers of biris without aid of machines, matches without aid of power and reinforced cement concrete pipes
Periodicity
Annually
Due date
By 30th April of the succeeding financial year (e.g. statement for 2013-14 should be submitted by 30.4.2014)
Penalty for non filling of returns
Rs.5000/- (Omitted w.e.f. 01.03.2016)
Late fee for belated filing returns (return is submiited after due date)
No Data

ER-8 : Fourth proviso to Rule 12(1) CER,2002

Category of Assessee
(i) Assessees paying 1%/2% excise duty (ii) Assessees availing exemption in respect of goods like coal, fertilizers, jewellery etc. under Notification No. 12/2012 CE dated 17.03.2012 and not manufacturing any other goods
Periodicity
Quarterly
Due date
By 10th day of the month following the respective quarter
Penalty for non filling of returns
Rs.5000/-
Late fee for belated filing returns (return is submiited after due date)
Rs.100 per day subject to a maximum of Rs.20,000/- for the period of delay in submission of each such return or statement

ER-4 : Annual Return (w.e.f.01.04.2016)

Category of Assessee
All Assessee including 100% EOU
Periodicity
Due date
Penalty for non filling of returns
Late fee for belated filing returns (return is submiited after due date)
Category of Assessee
Periodicity
Annually
Due date
Penalty for non filling of returns
Late fee for belated filing returns (return is submiited after due date)
Category of Assessee
By 30th November of the succeeding year
Periodicity
Due date
Penalty for non filling of returns
Late fee for belated filing returns (return is submiited after due date)

Return of CENVATABLE invoices : Rule 9(8) of CCR

Category of Assessee
Registered dealers
Periodicity
Quarterly
Due date
By 15th day of the month following the respective quarter
Penalty for non filling of returns
No Data
Late fee for belated filing returns (return is submiited after due date)
No Data
Revision of Return(w.e.f. 01.03.2016)

ER-1 : And return filed under second proviso to Rule 12(1)

Category of Assessee
By the end of the calendar month in which original return is filed
Periodicity
Due date
Penalty for non filling of returns
Late fee for belated filing returns (return is submiited after due date)

ER-1 : And return filed under second proviso to Rule 12(1)

Annual Return
Within a period of one month from the date of submission of Annual Return
Periodicity
Due date
Penalty for non filling of returns
Late fee for belated filing returns (return is submiited after due date)
PAYMENT OF EXCISE DUTY
The duty on the goods removed from the factory or the warehouse during the month shall be paid (ELECTRONICALLY)

Case No-1 : If the duty is paid electronically through internet banking

Due date for payment of duty
6th day of the following month
Interest on delayed payment
15%(w.e.f. 01.04.2016) per annum for the period starting with the first day after due date till the date of actual payment.If fails to pay duty within a period of 1 month from the due date, then he would be liable to pay penalty @ 1% on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues.

Case No-2 : In any other case

Due date for payment of duty
5th day of the following month
Interest on delayed payment
15%(w.e.f. 01.04.2016) per annum for the period starting with the first day after due date till the date of actual payment.If fails to pay duty within a period of 1 month from the due date, then he would be liable to pay penalty @ 1% on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues.

Case No-3 : In the case of goods removed during the month of March

Due date for payment of duty
31st day of March
Interest on delayed payment
15%(w.e.f. 01.04.2016) per annum for the period starting with the first day after due date till the date of actual payment.If fails to pay duty within a period of 1 month from the due date, then he would be liable to pay penalty @ 1% on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues.
IN CASE OF SSIs (W.e.f. 01.03.2016 an assessee, engaged in the manufacture or production of articles of jewellery, other than articles of silver jewellery but inclusive of articles of silver jewellery studded with diamond, ruby, emerald or sapphire, shall be eligible, if his aggregate value of clearances of all excisable goods in the preeceding financial year did not exceed 12crore, other than this assessee the limit is 400 lakhs.)

Case No-4 : If the duty is paid electronically through internet banking

Due date for payment of duty
6th day of the month following that quarter
Interest on delayed payment
15%(w.e.f. 01.04.2016) per annum for the period starting with the first day after due date till the date of actual payment.If fails to pay duty within a period of 1 month from the due date, then he would be liable to pay penalty @ 1% on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues.

Case No-5 : In any other case

Due date for payment of duty
5th day of the month following that quarter
Interest on delayed payment
15%(w.e.f. 01.04.2016) per annum for the period starting with the first day after due date till the date of actual payment.If fails to pay duty within a period of 1 month from the due date, then he would be liable to pay penalty @ 1% on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues.

Case No-6 : In the case of goods removed during the month of March

Due date for payment of duty
31st day of March
Interest on delayed payment
15%(w.e.f. 01.04.2016) per annum for the period starting with the first day after due date till the date of actual payment.If fails to pay duty within a period of 1 month from the due date, then he would be liable to pay penalty @ 1% on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues.
Every assessee shall electronically pay the duty through internet banking. However, the Assistant/Deputy Commissioner of Central Excise may for reasons to be recorded in writing, allow the assessee to deposit excise duty by any mode other than internet banking.
Penalties under excise
Offences

if any producer, manufacturer, registered person of a warehouse or an importer who issues an invoice on which CENVAT credit can be taken or a registered dealer:-
(A) removes any excisable goods in contravention of any of the provisions of these rules or the notification issued under these rules,
(B) does not account for any excisable goods produced or manufactured or stored by him,
(C) engages in the manufacture, production or storage of any excisable goods without having applied for the registration certificate required under section 6 of the Act,
(D) contravenes any of the provisions of these rules or the notifications issued under these rules with intent to evade payment of duty

Amount of Penalty
penalty not exceeding the duty on the excisable goods in respect of which any contravention of the nature referred to in clause (a) or clause ,(b) or clause ,(c) or clause, (d) has been committed,
OR
Rs. 5000/-
whichever is greater
Consequences
all such goods shall be liable to confiscation

Any person who acquires possession of, or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to

Amount of Penalty
penalty not exceeding the duty on such goods
OR
Rs.2000/-
whichever is greater
Consequences
confiscation

Any person, who issues -
(i) an excise duty invoice without delivery of the goods specified therein or abets in making such invoice,
(ii) any other document or abets in making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made there under like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund

Amount of Penalty
not exceeding the amount of such benefit
OR
Rs.5000/-
whichever is greater
Consequences
Not Applicable

General penalty. -
A breach of rules shall, where no other penalty is provided herein or in the Act, be punishable

Amount of Penalty
Rs.5000/-
Consequences
confiscation of the goods in respect of which the offence is committed
APPEALS
Particulars

Appeal: Aggrieved by a decision/ order passed by Central Excise Officer subordinate to the CCE.

Who can file
Any person
To Whom
Commissioner of Central Excise (Appeals)
Applicable Form
Form E.A.-1
Time Period of Submitting the required form
Within a 60days from the date of communication of the order. (Extended by further 30days on sufficient cause)

Appeal: Aggrieved by decision/order passed by the CCE/CCE(Appeals)

Who can file
Any person
To Whom
Appellate Tribunal
Applicable Form
Form E.A.-3
Time Period of Submitting the required form
Within 3 months from the date on which the order sought to be appealed against is communicated to CCE and party preferring the appeal.

Memorandum of Cross Objection: On receipt of notice that an appeal has been preferred

Who can file
Party against whom appeal has been preferred
To Whom
Appellate Tribunal
Applicable Form
Form E.A.-4
Time Period of Submitting the required form
within 45 days of the receipt of the notice.

Application: Call for and examine the record of any proceeding to direct CCE

Who can file
Committee of Chief Commissioners of Central Excise
To Whom
Appellate Tribunal
Applicable Form
Form E.A.-5.
Time Period of Submitting the required form
Within 3 months from the date of communication of the decision/order of adjudicating authority.

Application: to direct Appellate Tribunal to refer High Court

Who can file
CCE
To Whom
High Court
Applicable Form
Form E.A.-6
Time Period of Submitting the required form
within one hundred and eighty days of the date upon which he is served with notice of an order of appellate tribunal

Memorandum of cross Objection: On receipt of notice that an *application has been preferred

Who can file
Person against whom appeal has been preferred
To Whom
High Court
Applicable Form
Form E.A.-7
Time Period of Submitting the required form
within 45 days of the receipt of the notice.

Revision Application :

Who can file
Any person aggrieved by any order passed by CCE(Appeals)
To Whom
Central Government
Applicable Form
Form E.A.-8
Time Period of Submitting the required form
Within three months from the date of the communication to the applicant of the order against which the application is being made