20.05

SOME USEFUL HINTS – PAGE 19 (SSI UNITS) & 22 (CENVAT CREDIT & SERVICE TAX) & PAGE 24 - MY USEFUL PAST CIRCULATIONS – PAGE 21

HINTS HINTS –– INFORMATIONS INFORMATIONS –– KNOWLEDGEKNOWLEDGE

ITEM NOITEM NO.,., 2/2010-2011 2/2010-2011,,DATED 20TH MAY, 2010DATED 20TH MAY, 2010

CENTRAL EXCISECENTRAL EXCISE (E-filing of Central Excise Returns – Some Useful(E-filing of Central Excise Returns – Some Useful

Guidance)Guidance)

ARE YOU REQUIRED TO FOLLOW E-FILING PROCEDURE, FOR FILING OF E.R.-1 OR E.R.-2 OR

E.R.-3?

THE AUTOMATION OF CENTRAL EXCISE & SERVICETHE AUTOMATION OF CENTRAL EXCISE & SERVICE TAX SYSTEMTAX SYSTEM (ceas),(ceas), ON THEON THE

ELECTRONIC LINK, NAMELY,ELECTRONIC LINK, NAMELY, http://www.aces.gov.in, DEMANDS TARIFF & NON-TARIFF NOTIFICATIONDEMANDS TARIFF & NON-TARIFF NOTIFICATION

NUMBER & DATE & SERIALNUMBER & DATE & SERIAL ENTRY NUMBER, FROM YOU,ENTRY NUMBER, FROM YOU, FOR YOUR FINISHED EXCISABLE GOODS? FAILINGFOR YOUR FINISHED EXCISABLE GOODS? FAILING

WHICHWHICH THE E-FILING SYSTEM, DOES NOT PERMIT YOUTHE E-FILING SYSTEM, DOES NOT PERMIT YOU TO GO AHEAD SUCCESSFULLY, WITHOUT ERROR?TO GO AHEAD SUCCESSFULLY, WITHOUT ERROR?

THIS COMMUNICATION, PROVIDES YOU THE GUIDANCE,THIS COMMUNICATION, PROVIDES YOU THE GUIDANCE, IN THE ABOVEMENTIONED SUBJECT-MATTERIN THE ABOVEMENTIONED SUBJECT-MATTER

MY FUTURE CIRCULATIONS – PAGE 21 INDEX – PAGE 23

1. WHAT IS E-FILING OF CENTRAL EXCISE RETURN?

http://www.aces.gov.in/

E-filing of Excise Returns & Tariff/ Non-tariff Notification No. & Serial Entry No.

YOGEN V. MAHADEVIA (Advocate) of 28

Atlantic-III, 2nd Floor, Opp. YES Bank, Nr. Sterling Hospital, Race Course, Vadodara-390 007, Gujarat. PHONES: (0265) 2331164 / 2338258 / 2322809 MOBILES: 098240 58754 / 098250 33289 TELEFAX: (0265) 2331164. E-mail: [email protected]

(1) 1-4-2010 – E-FILING OF CENTRAL EXCISE RETURN

Vide the Notification, 4/2010-C.E.(N.T.), dated 19th

February, 2010, 3rd new Proviso, has been inserted in

Rule 12(1) of the Central Excise Rules, 2002, so that all

the Registered Manufacturers, WITH EFFECT FROM 1-4-

2010, will have to file their E.R.-1, E.R.-2 or E.R.-3

Return, mandatorily, through Internet E-filing

System, if, such a Manufacturer, has paid TOTAL

Central Excise Duty, to the tune of Rs. 10/- Lakh or more,

in the preceding or previous Financial Year, say, 2009-

2010, by Cash or by Cheque or E-payment, through

Personal Ledger Account (PLA) or through CENVAT

Credit Scheme or both taken together. This

amendment, will apply for E-filing of Central Excise

Return, for the Month of April, 2010 & thereafter & was

not applicable to Central Excise Returns, for the Quarter

of January – March, 2010 or for Month of March, 2010.

(2) AUTOMATION OF CENTRAL EXCISE & SERVICE TAX

SYSTEM (aces)

In order to put into practice, the E-filing of Central Excise

(& Service Tax) Returns, the Central Board of Excise &

Customs, New Delhi, has created the Automation of

Central Excise & Service Tax Electronic System (aces),

through the Electronic Link, namely,

http://www.aces.gov.in which can facilitate the eligiblewhich can facilitate the eligible

Manufacturers & Service Providers, to file their CentralManufacturers & Service Providers, to file their Central

Excise Returns, in Form Excise Returns, in Form E.R.-1E.R.-1 (Monthly Return - Non-SSI (Monthly Return - Non-SSI

mailto:[email protected]





Units), Units), E.R.-2E.R.-2 (Monthly Return - 100% EOUs), (Monthly Return - 100% EOUs), E.R.-3E.R.-3

(Quarterly Return - All SSI Units) & Service Tax Return, in(Quarterly Return - All SSI Units) & Service Tax Return, in

Form Form S.T.-3S.T.-3 (Half Yearly Return – Service Providers & (Half Yearly Return – Service Providers &

Reverse Charge Service Enjoyers).Reverse Charge Service Enjoyers).

(3) TRADE PERSON IDENTIFICATION NUMBER (TPIN)

In order to operate E-filing System, the Manufacturer or

Service Provider, should obtain a TPIN (Trade Person

Identification Number), by making an Application, to the

Range Office, with a copy to the Divisional Office &

generate his User’s Name & Password, through the

Automation of Central Excise and Service Tax (aces)

System and then open the required Return Format, On-

line fill it & file it.

(4) TARIFF & NON-TARIFF NOTIFICATIONS

You are required to clear your Finished Excisable Goods,

under various circumstances, under different provisions

of the Central Excise Law & the Tariff Notifications &

Non-tariff Notifications. The aces System, demands from

you, the relevant Tariff or Non-tariff Notification Number

& Serial Entry Number, in the Table, to a given or chosen

Notification, under which the Finished Excisable Goods,

have been cleared by you, from your Factory, in the

Previous Month or Quarter. If, you fail to provide the

correct Tariff or Non-tariff Notification Number & Date,

along with the Serial Entry Number, if any, for the said

Excisable Goods, as appearing in the given or chosen





Tariff or Non-tariff Notification Number, the aces System,

does not permit you to proceed further and you get

stuck-up, resulting into failure in E-filing of the Return.

2. CENTRAL EXCISE TARIFF NOTIFICATIONS

(1) TARIFF NOTIFICATION, COVERING A SINGLE EXCISABLE

GOODS – NO SERIAL ENTRY NUMBER

Tariff Notifications, in general, are those which fix the

Central Excise Duty Rate, for your Finished Excisable

Goods. If, a given Tariff Notification, chosen by you, for

Assessment of your Finished Excisable Goods, contains a

single Excisable Goods, such a Tariff Notification, cannot

have Serial Entry Number of the Excisable Goods &

therefore, in such a case, after citing the Tariff

Notification Number & Date, for the Serial Entry Number,

you have to insert the expression “-” or “Nil”, whichever,

is acceptable to the aces System.

(2) TARIFF NOTIFICATION, COVERING MULTIPLE EXCISABLE

GOODS, WITH SERIAL ENTRY NUMBERS

However, if, a given Tariff Notification, at a time,

declares the Central Excise Duty Rates, for a number of

Excisable Goods, it may have a Table, containing various

Excisable Goods, posted by the Central Government, at

different Serial Entry Numbers. Therefore, in such a

case, after citing the Tariff Notification Number & Date,





as applicable in your case, in the Column of the Serial

Entry Number, you should insert, in the aces System, the

correct Serial Entry Number, at which the said Excisable

Goods, have been posted in the Table, to the chosen

Tariff Notification.

Some of the most popular Tariff Notifications, duly up-

dated, have been provided in my NEWS ITEM NO.,

45/2009-2011, DATED 26TH FEBRUARY, 2010, sent

to you, on 27th February, 2010, after the Union Budget,

2010-2011.

3. CENTRAL EXCISE NON-TARIFF NOTIFICATIONS

(1) NON-TARIFF CENTRAL EXCISE NOTIFICATIONS – MEANS

PROCEDURAL NOTIFICATIONS

In general, Non-tariff Notifications, are those which

direct you to clear your Finished Excisable Goods, either

on payment of Central Excise Duty or without payment

of Central Excise Duty, by strictly following a Specific

Procedure, prescribed under the given Non-tariff

Notification.

(2) NON-TARIFF CENTRAL EXCISE NOTIFICATIONS – MAY

REQUIRE PAYMENT OF CENTRAL EXCISE DUTY BUT WITH

SPECIFIED PROCEDURE

For example, when you clear or export your Finished

Excisable Goods, to Nepal or Bhutan and if, the

payment, is received or intended to be received by you,





from the Nepalese or Bhutanese Buyer, in Indian

Rupees, you have to strictly follow the very Specific

Procedure of Sealing of the Export Consignment, by the

Central Excise Officer only & clearance of the Export

Consignment, under specially prescribed Nepal Invoice,

on payment of applicable Central Excise Duty, without

any Rebate of such Central Excise Duty, as stipulated in

the Non-tariff Notification, 20/2004-C.E.(N.T.), dated 6-9-

2010. Therefore, under the aforestated mode of export

of Excisable Goods, at appropriate Column, in the Excise

Return, being filed under E-filing Procedure, you have to

incorporate, the abovementioned Non-tariff Notification

Number & Date but for Serial Entry Number, you have to

use the expression “-” or “Nil”, in the aces System. This

is in asmuch as, the said Non-tariff Notification, covers

“All Excisable Goods” and not only a few selected

Excisable Goods, to be exported to Nepal or Bhutan &

therefore, there was no necessity for the Central

Government to provide a Table & assign different Serial

Entry Numbers, for different Excisable Goods.

(3) CENTRAL EXCISE NON-TARIFF NOTIFICATIONS – MAY

PERMIT CLEARANCEOF EXCISABLE GOODS, WITHOUT

PAYMENT OF CENTRAL EXCISE DUTY BUT WITH

SPECIFIED PROCEDURE

Similarly, when you export your Finished Excisable

Goods, to a Foreign Country, other than Nepal or

Bhutan, without payment of Central Excise Duty, you





have to follow a very specific Procedure, prescribed in

the Non-tariff Notification, 42/2001-C.E.(N.T.), dated 26-

6-2001 of execution of UT-1 OR B-1 Bond/C.T.-1; Excise

Invoice; A.R.E.-1; Sealing of the Export Consignment;

Export Invoice & Packing List; Shipping Bill & Bill of

Lading; Export within 6 Months & submission of Proof of

Export, etc., as prescribed under the said Non-tariff

Notification, 42/2001-C.E.(N.T.), dated 26-6-2001.

Therefore, under the aforestated mode of export of

Excisable Goods, at appropriate Column, in the Excise

Return, being filed under E-filing Procedure, you have to

incorporate, the abovementioned Non-tariff Notification

Number & Date but for Serial Entry Number, you have to

use the expression “-” or “Nil”, in the aces System. This

is in asmuch as, the said Non-tariff Notification, covers

“All Excisable Goods”, to be exported to any Country,

except to Nepal or Bhutan & therefore, there was no

necessity for the Central Government to provide a Table

& assign different Serial Entry Numbers, for different

Excisable Goods.

(4) CENTRAL EXCISE NON-TARIFF NOTIFICATIONS –

WHETHER CLEARANCE WITH OR WITHOUT PAYMENT OF

DUTY BUT WITH MANADATORY PROCEDURE

Thus, when you are required to clear your Finished

Excisable Goods, under a Non-tariff Notification, there

may be payment of Central Excise Duty, on the

Excisable Goods or the Excisable Goods, may be





permitted to be removed without payment of Central

Excise Duty but in both the cases, the clearance of the

Excisable Goods, from the Factory, is to be undertaken

only on following the Specific Procedure, prescribed in

the said Non-tariff Notification, before & after the

clearance of the Excisable Goods, from your Factory.

(5) CENTRAL EXCISE TARIFF NOTIFICATIONS – MAY ALSO

HAVE, SOMETIMES, TERMS & CONDITIONS, WITH

PROCEDURE

It should also be noted that in respect of certain

Excisable Goods, while granting Concessional or Nil Rate

of Central Excise Duty, through a Tariff Notification,

where, the Central Government, has some doubts or

apprehensions of misuse of the Concession, granted

under the said Tariff Notification, the Central

Government, may prescribe certain Conditions &

Procedure, even in a given Tariff Notification but the

Non-tariff Notifications, are peculiar in the sense that

they are generally full of Procedure, to be followed by

the Manufacturer, before & even after clearance of the

Excisable Goods, from his Factory, may be on payment

of Central Excise Duty or without payment of Central

Excise Duty, as per the Terms & Conditions of a given

Non-tariff Notification.





(6) FIRST CHECK-UP THE APPLICABLE CENTRAL EXCISE

TARIFF OR NON-TARIFF NOTIFICATION & SERIAL ENTRY

NUMBER, IF ANY

Therefore, before you open & use the ceas System, it is

necessary for you to pre-determine the clearances of

various or the same Excisable Goods, made under

different Tariff Notifications, with the Serial Entry

Number, if any, of each, in the given Tariff Notification &

those, cleared under the Non-tariff Notifications. It may

so happen that one & the same Excisable Goods, you

might have cleared under different Tariff Notifications,

under different circumstances, with different Terms &

Conditions, as well as, under different Non-tariff

Notifications.

4. ONE & THE SAME EXCISABLE GOODS, CAN BE CLEARED

UNDER VARIOUS CENTRAL EXCISE TARIFF & NON-TARIFF

NOTIFICATIONS, WITH PAYMENT OR WITHOUT PAYMENT

OF CENTRAL EXCISE DUTY

For example, Mild Steel Pipes, say, falling under the Tariff Item No., 7304 90 90 of the First Schedule to the Central Excise Tariff Act, 1985, manufactured by you, can be cleared as under:

(i) The Mild Steel Pipes, manufactured in your Factory, may be cleared by you, on payment of Central Excise Duty of 10.30%, to a normal Buyer, under Serial Entry No., 52 of the Tariff Notification, 2/2008-C.E., dated 1-3-2008;





(ii) The same Mild Steel Pipes, manufactured by you, may be cleared by you, to a Water Treatment Project, for consumption of Water, by Human or Animal, with Nil Central Excise Duty, under Serial Entry No., 7 of the Tariff Notification, 6/2006-C.E., dated 1-3-2006;

(iii) The same Mild Steel Pipes, manufactured by you, may be cleared by you, to a Water Treatment Project, for Industrial or Agriculture consumption, with Nil Central Excise Duty, under the Tariff Notification, 3/2004-C.E., dated 8-1-2004 but Serial Entry Nil;

(iv) The same Mild Steel Pipes, manufactured by you, may be cleared by you, to specified Projects of United Nations or International Organization, involving Foreign Funds or Loans, with Nil Central Excise Duty, under the Tariff Notification, 108/95-C.E., dated 28-8-1995 but with Serial Entry No., Nil;

(v) The same Mild Steel Pipes, manufactured by you, may be cleared by you, for export to Nepal or Bhutan, on payment of Central Excise Duty, under the Non-tariff Notification, 20/2004-C.E.(N.T.) dated 6-9-2004, with Serial Entry No., Nil;

(vi) The same Mild Steel Pipes, may be cleared by you, for export to Nepal or Bhutan, without payment of Central Excise Duty, under B-1 Bond, under the Non-tariff Notification, 45/2001-C.E.(N.T.) dated 26-6-2001, with Serial Entry No., Nil;

(vii) The same Mild Steel Pipes, manufactured by you, may be cleared by you, for export to a Foreign Country, including to a Unit or Developer, in a Special Economic Zone, except to Nepal or Bhutan, on payment of Central Excise Duty, with





a Claim for Rebate, under the Non-tariff Notification, 19/2004-C.E.(N.T.) dated 6-9-2004, with Serial Entry No., Nil;

(viii) The same Mild Steel Pipes, manufactured by you, may be cleared by you, for export to a Foreign Country, including to a Unit or Developer, in a Special Economic Zone, except to Nepal or Bhutan without payment of Central Excise Duty, under UT-1 or B-1 Bond/C.T.-1, under the Non-tariff Notification, 42/2001-C.E.(N.T.) dated 26-6-2001, with Serial Entry No., Nil;

(ix) The same Mild Steel Pipes, manufactured by you & supplied by you, as an Intermediate Advance Authorization Holder, to an Advance Authorization Holder, under ANNEXURE-I or ANNEXURE-45, without payment of Central Excise Duty, under Non-tariff Notification, 44/2001-C.E.(N.T.), dated 26-6-2001, with Serial Entry No., Nil;

(x) The same Mild Steel Pipes, manufactured by you & captively consumed in your Factory, with Nil Central Excise Duty, for production of Pipe Fittings, under the Tariff Notification, 67/95-C.E., dated 16-3-1995, with Serial Entry No., Nil;

(xi) The same Mild Steel Pipes, manufactured by you & exported to a Foreign Country, including to a Unit or Developer, in a Special Economic Zone, without payment of Central Excise Duty, under UT-1 or B-1 Bond, for International Trade Exhibition or Demonstration or Test or Trial, under the Tariff Notification, 263/79-C.E. dated 22-9-1979, with Serial Entry No., Nil;

(xii) The same Mild Steel Pipes, manufactured by you & supplied by you, to a Service Provider, by debiting





Central Excise Duty, in his Served From India Scheme Scrip, with Nil Central Excise Duty, under the Tariff Notification, 34/2006-C.E., dated 14-6-2006, with Serial Entry No., Nil;

(xiii) The same Mild Steel Pipes, manufactured by you & supplied to a Project, under International Competitive Bidding Procedure, with Nil Central Excise Duty, under the Tariff Notification, 6/2006-C.E., dated 1-3-2006, with Serial Entry No., 91;

(xiv) The same Mild Steel Pipes, manufactured by you & supplied to Ultra Mega Power Project, with Nil Central Excise Duty, under the Tariff Notification, 6/2006-C.E., dated 1-3-2006, with Serial Entry No., 91-A;

(xv) The same Mild Steel Pipes, manufactured by you & supplied to Mega Power Projects, under Tariff Based Competitive Bidding, with Nil Central Excise Duty, under the Tariff Notification, 6/2006-C.E., dated 1-3-2006, with Serial Entry No., 91-B;

(xvi) The same Mild Steel Pipes, manufactured by you & supplied to a 100% EOU, under C.T.-3 Certificate, with Nil Central Excise Duty, under the Tariff Notification, 22/2003-C.E., dated 31-3-2003, with Serial Entry No., 1 (Capital Goods) or Serial Entry No., 7 (Raw Material), etc.

(xvii) The same Mild Steel Pipes, manufactured by you & supplied to a Numalighar Refinery; Indian Oil Corporation Limited, Bongaigaon Refinery; Indian Oil Corporation Limited, Guwahati & Assam Oil Division, Indian Oil Corporation Limited, Digboi, at Concessional Rate of Central Excise Duty, under the Tariff Notification, 29/2002-C.E., dated 13-5-2002, with Serial Entry No., Nil.





(xviii) And so on!!

5. GENERAL GUIDELINE FOR TARIFF NOTIFICATIONS

SR. NO.

CHAPTER NO., UNDER EXCISE TARIFF

TARIFF NOTIFICATION & SERIAL ENTRY NUMBER, IF ANY

RANGE OF CENTRAL EXCISE DUTY RATES

1 Chapter Nos., 4 to 22

3/2006-C.E., dated 1-6-2006; Serial Entry Nos. 1 to 43

Duty Rates: Nil, 4%, 10% & Specific Rates



Duty Rates: Nil, 4%, 8% (LPG), 10%, 14% (Petroleum) & Specific Rates (Cement)



Duty Rates: Nil, 4%, 10% & Specific Rates



Duty Rates: Nil, 4%, 10% or ad valorem + Specific Rates



Duty Rates: Most Goods 10%, 14% (Petroleum) & ad valorem + Specific Rates (Motor Cars)

6 Chapter Nos., 15, 19, 54, 56, 85, 87, 90


Duty Rates: 4%, 10%, 22% (Motor Cars) & ad valorem + Specific Rates (Motor Cars)

7 Chapter Nos., 44, 48, 59, 66, 68, 73, 74, 76, 82, 84, 85, 87, 90, 94 & 95


Duty Rates: Most Nil, 4%, 10%, 22% (Motor Cars) & ad valorem + Specific Rates (Motor Cars)

8 Chapter Nos., 7, 13, 17, 18, 19, 21, 22, 24, 28, 30, 40, 44, 47, 48, 57, 58, 63, 64, 68, 69, 71, 72, 73, 74, 76, 84, 85, 90, 94 & 95


Duty Rates: Most Nil, Intraocular Lenses 4%, Specific Rates (Sugar)

9 Chapter Nos., 50 to 63 (TEXTILE GOODS)


Duty Rates: Nil

10 Chapter Nos., 52 29/2004-C.E., dated 9-7-2004; Duty Rates: 4% &

NOW REFRESF YOURSELFCAN YOU EXPORT YOUR CENVAT INPUTS OR CAPITAL GOODS, WITHOUT CAN YOU EXPORT YOUR CENVAT INPUTS OR CAPITAL GOODS, WITHOUT

PAYMENT OF CENTRAL EXCISE DUTY OR WITHOUT REVERSAL OF CENVAT PAYMENT OF CENTRAL EXCISE DUTY OR WITHOUT REVERSAL OF CENVAT CREDIT OR EXPORT THEM, ON PAYMENT OF CREDIT OR EXPORT THEM, ON PAYMENT OF

CENTRAL EXCISE DUTY, WITH A CLAIM OF REBATE?CENTRAL EXCISE DUTY, WITH A CLAIM OF REBATE? YES, YES & YES! SEE PAGE 24, BELOW.





to 63 (TEXTILE GOODS)

Serial Entry Nos. 1 to 9 10%

11 All Items of Machinery, Components & Pipes – Any Chapter

3/2004-C.E., dated 8-1-2004 (Water Supply Projects – Industrial/Agriculture); Serial Entry No., Nil

Duty Rates: Nil

12 All Excisable Goods of any Chapter

108/95-C.E., dated 28-8-1995 (United Nation Projects & International Organization; Serial Entry No., Nil

Duty Rates: Nil

13 All Raw Materials, Capital Goods, Material Handling Equipments, Consumables, Office Equipments, etc.

22/2003-C.E., dated 31-3-2003, Supply to 100% Export Oriented Units, Software Technology Pak Units & Electronic Hardware Technology Park Units; Serial Entry Nos., 1 to 28

Duty Rates: Nil

13 All Excisable Goods, except LDO, HSDO & Petrol, produced & Captively Consumed

67/95-C.E., dated 16-3-1995 (Captive Consumption Notification); Serial Entry No., Nil

Duty Rates: Nil

14 All Scientific & Technical Equipments, Components, Accessories, Consumables, Software

10/97-C.E., dated 1-3-1997 (Supply to Public Funded Research Institutions, Universities, IIT or IIS, Bangalore or REC (Sr. E. No., 1) & Other Qualified Research Institutions (Sr. E. No., 2)

Duty Rates: Nil

15 All Capital Goods, Office Equipments, Furniture, etc.

34/2006-C.E., dated 14-6-2006 (By debiting Duty, in the Served From India Scheme Scrip), Serial Entry Nil

Duty Rates: Nil (A Service Provider, gets this exemption)

6. GUIDELINE FOR NON-TARIFF NOTIFICATIONSSR. NO.

NON-TARIFF NOTIFICATION NUMBER & DATE

PURPOSE OF CLEARANCE OF EXCISABLE GOODS

CENTRAL EXCISE DUTY RATE

1 Non-Notification, 19/2004-C.E.(N.T.), dated 6-9-2004, Serial Entry Nil (Rebate, on Finished Goods, exported, except Nepal or Bhutan)

Clearance of All Excisable Goods, for export to a Foreign Country, except Nepal or Bhutan, on payment of Central Excise Duty, with a Claim of Rebate, under Rule 18 of the Central Excise Rules, 2002, for the Central Excise Duty, paid on the Export Goods (Finished Goods)

Normal Rate of CENVAT, with 2% Primary Education Cess & 1% Secondary & Higher Education Cess (A.R.E.-1 Procedure)

2 Non-Notification, 20/2004-C.E.(N.T.), dated 6-9-2004, Serial Entry Nil(Export to Nepal or Bhutan –

Clearance of All Excisable Goods, for export to Nepal or Bhutan, under Nepal Invoice, on payment of Central Excise Duty, without a Claim of Rebate, under Rule 18 of

Normal Rate of CENVAT, with 2% Primary Education Cess & 1% Secondary





Rupee Payment – Duty to be paid – No Rebate)

the Central Excise Rules, 2002 (Rupee Payment, from Nepal or Bhutan)

& Higher Education Cess (Nepal Invoice )

3 Non-Notification, 21/2004-C.E.(N.T.), dated 6-9-2004, Serial Entry Nil(Rebate of Duty, paid on Inputs – Except Nepal or Bhutan)

Clearance of All Excisable Goods, for export to a Foreign Country, except Nepal or Bhutan, without payment of Central Excise Duty, under UT-1 or B-1 Bond/C.T.-1, under Rule 19 of the Central Excise Rules, 2002, with a Claim of Rebate of Central Excise Duty, under Rule 18 of the Central Excise Rules, 2002, which Central Excise Duty, was paid on Inputs and/or Packaging Material, used for production of the Export Goods

Rebate of Central Excise Duty, paid on Inputs, used for production of Export Goods, using A.R.E.-2 Procedure

4 Non-Notification, 42/2001-C.E.(N.T.), dated 26-6-2001, Serial Entry Nil(Normal export, without payment of Central Excise Duty)

Clearance of All Excisable Goods, for export to a Foreign Country, except Nepal or Bhutan, without payment of Central Excise Duty, under UT-1 or B-1 Bond/C.T.-1, under Rule 19 of the Central Excise Rules, 2002

Nil Central Excise Duty. A.R.E.-1 Procedure

5 Non-Notification, 43/2001-C.E.(N.T.), dated 26-6-2001, Serial Entry Nil(Duty-free Inputs, for Export Goods)

Clearance of All Excisable Goods, for export, to a Foreign Country, including Nepal or Bhutan, without payment of Central Excise Duty, under UT-1 or B-1 Bond or C.T.-1, under Rule 19 of the Central Excise Rules, 2002, where, the Export Goods, were produced out of Duty-free Inputs, procured under Rule 19 of the Central Excise Rules, 2002, by following ANNEXURE-I or ANNEXURE-45 Procedure

Nil Central Excise Duty A.R.E.-2 Procedure

6 Non-Notification, 44/2001-C.E.(N.T.), dated 26-6-2001, Serial Entry Nil (Supply of Excisable Goods, without payment of Central Excise Duty, by Intermediate Advance Authorization Holder to Advance Authorization Holder)

Supply of All Excisable Goods, without payment of Central Excise Duty, under ANNEXURE-I or ANNEXURE-45 Procedure, by the Intermediate Advance Authorization Holder, to an Advance Authorization Holder, under Rule 19 of the Central Excise Rules, 2002

Nil Central Excise Duty

7 Non-Notification, 45/2001-C.E.(N.T.), dated 26-6-2001, Serial Entry Nil(Export to Nepal or Bhutan – Freely Convertible Foreign Exchange)

Clearance of All Excisable Goods, for export to Nepal or Bhutan, under Nepal Invoice, without payment of Central Excise Duty, under B-1 Bond or C.T.-1, under Rule 19 of the Central Excise Rules, 2002

Nil Central Excise Duty(Nepal Invoice)

7. QUANTITY OF CENVAT INPUT OR CAPITAL GOODS,

CLEARED, AS SUCH, CANNOT REFLECT, IN

MONTHLY (NON-SSI UNITS & 100% EOUs) OR

QUARTERLY (SSI UNITS) CENTRAL EXCISE

RETURN, FILED BY THE MANUFACTURER OR HALF

YEARLY S.T.-3 RETURN, FILED BY THE SERVICE

PROVIDER BUT DEBIT OF CENVAT CREDIT, DOES

APPEAR IN THE RETURNS





(1) E.R.-1, E.R.-2 & E.R.-3 – NOT FOR CENVAT INPUTS OR

CAPITAL GOODS, REMOVED AS SUCH

It is to be noted that the quantity of CENVAT Input or

Capital Goods, cleared or removed, as such, under Rule

3(5) of the CENVAT Credit Rules, 2004, by the

Manufacturer, by paying Central Excise Duty, equal to

CENVAT Credit, originally availed of, will never be

reflected in the Monthly Return, to be filed by a

Manufacturer, such as, E.R.-1, to be filed by Non-SSI Unit

or E.R.-2, to be filed by a 100% EOU or Quarterly Return,

in Form E.R.-3, to be filed by a SSI Unit.

(2) E.R.-1, E.R.-2 & E.R.-3, ARE RETURNS, FOR FINISHED

EXCISABLE GOODS

Monthly or Quarterly Returns, in Form E.R.-1, E.R.-2 &

E.R.-3, to be filed by Manufacturers, are meant for

details of Finished Goods, manufactured and cleared

by the Manufacturer, during a given Month or Quarter

and the said Return, in each case, is based on the

Entries of Finished Excisable Goods, made in the Daily

Stock Account (R.G. 1 Register) and the said Monthly or

Quarterly Returns, cannot reflect the details of quantity

of CENVAT Inputs and Capital Goods, which are

accounted for, in R.G. 23-A, Part I or R.G. 23-C, Part I

Register.

(3) SERVICE PROVIDER – S.T.-3 RETURN





Similarly, the quantity of CENVAT Inputs or Capital

Goods, cleared, as such, by a Service Provider, under

Rule 3(5) of the CENVAT Credit Rules, 2004, will not

appear in his Half Yearly Return, in Form S.T.-3, required

to be filed by a Service Provider. This is in asmuch as,

the said Half Yearly Return, to be filed by a Service

Provider, reflects the details of the Output Services,

provided or to be provided by him, in a given Half Year;

Service Tax, payable & actually paid, along with CENVAT

Credit, on CENVAT Inputs, Capital Goods & Input

Services, availed of and utilised by him, in the said Half

Year. The Details of quantities of CENVAT Inputs &

Capital Goods, do not appear in the said Half Yearly

Return. However, the CENVAT Credit, debited for

removal of CENVAT Input or Capital Goods, as

such, under Rule 3(5) of the CENVAT Credit Rules,

2004, will certainly appear in the Column No., 5-B

of the Half Yearly S.T.-3 Return of a Service

Provider.

(4) E.R.-1, E.R.-2 & E.R.-3, DO CONTAIN DEBIT ENTRIES OF

CENVAT CREDIT, WHEN CENVAT INPUTS OR CAPITAL

GOODS, REMOVED AS SUCH BUT NOT QUANTITY

However, in case of a Manufacturer, filing E.R.-1, E.R.-2,

E.R.-3, the debit of CENVAT Credit, under Rule 3(5) of

the CENVAT Credit Rules, 2004, will certainly appear in

Column No., 8 of E.R.-1 (Non-SSI Units) or Column No.,

8 of E.R.-2 (100% EOUs) or Column No., 6 of E.R.-3 (SSI





Units), providing details of CENVAT Credit, availed of,

during a given Month or Quarter and its utilisation. The

quantity of CENVAT Input or Capital Goods, cleared, as

such, under Rule 3(5) of the CENVAT Credit Rules, 2004,

will not appear in any of the said Returns.

(5) NO PLACE FOR INPUTS OR CAPITAL GOODS, IN E.R.-1,

E.R.-2 OR E.R.-3

Therefore, do not try to post the quantity of CENVAT

Inputs or Capital Goods, cleared, as such, under Rule

3(5) of the CENVAT Credit Rules, 2004, in E.R.-1 or E.R.-2

or E.R.-3, while E-filing thereof, on ceas System, through

the Electronic Link, namely, http://www.aces.gov.in.

(6) NO PLACE FOR NON-DUTY PAID JOB-WORK

TRANSACTIONS, IN E.R.-1, E.R.-2 OR E.R.-3

Please also note that there is no provisions, in E.R.-1,

E.R.-2 or E.R.-3, to incorporate the details of the Non-

duty paid Job-work Transactions, undertaken by you,

under Rule 4(5)(a) or Rule 4(6) of the CENVAT Credit

Rules, 2004 or such Job-work Transactions, undertaken

by you, under the Job-work Notification, 214/86-C.E.,

dated 25-3-1986, for the Principal Manufacturer. These

Job-work Transactions, will simply remain in the

respective Job-work Registers or Records. Therefore, do

not try to post the Job-work Transactions, undertaken by

you, as a Job-worker, for the Principal Manufacturer, in

E.R.-1 or E.R.-2 or E.R.-3, while E-filing thereof, on ceas






System, through the Electronic Link, namely,

http://www.aces.gov.in.

8. NO PLACE FOR CENVAT INPUTS OR CAPITAL GOODS,

SENT BY THE PRINCIPAL MANUFACTURER OR CENVAT

FACTORY, TO JOB-WORKER, UNDER RULE 4(5)(a) or RILE

4(6) OF THE CENVAT CREDIT RULES. 2004, IN E.R.-1,

E.R.-2 OR E.R.-3

(1) TRANSACTIONS, UNDER Rule 4(5)(a) of the CENVAT

CREDIT RULES, 2004 & E.R.-1, E.R.-2 OR E.R.-3

Under Rule 4(5)(a) of the CENVAT Credit Rules, 2004, a

Manufacturer, without any Permission, from or

Intimation, to any Central Excise Officer, can clear any

CENVAT Inputs or Capital Goods, for Job-work, to a Job-

worker and get back the Processed Goods, to his Factory

within 180 days, by using Job-work Challan. There are no

provisions, in or requirement of E.R.-1, E.R.-2 or E.R.-3,

to reflect such CENVAT Inputs or Capital Goods, sent by

the Principal Manufacturer, to the Job-worker & the

Processed Goods, received back by the Principal

Manufacturer, from the Job-worker. Exactly, the same

legal position exists, when Inputs, are sent to the Job-

worker, under the Job-work Notification, 214/86-C.E.,

dated 25-3-1986.

(2) TRANSACTIONS, UNDER Rule 4(5)(a) of the CENVAT

CREDIT RULES, 2004 & E.R.-1, E.R.-2 OR E.R.-3






Under Rule 4(6) of the CENVAT Credit Rules, 2004, a

Principal Manufacturer, with prior Permission of the

Assistant or Deputy Commissioner of Central Excise, can

send his CENVAT Inputs, to the Job-worker, for

production of Finished Goods, by the said Job-worker &

clear the Finished Goods, under his own Excise Invoice,

directly from the Premises of the Job-worker, after

having accounted for the Finished Goods, in his Daily

Stock Register, as if, the said Finished Goods, have been

manufactured in the Factory of the said Principal

Manufacturer. These Finished or Processed Goods, will

be reflected in the E.R.-1, E.R.-2 (Special Case) or E.R.-3

of the Principal Manufacturer, when he files, the E.R.-1,

E.R.-2 or E.R.-3, under ceas System, through the Link,

namely, http://www.aces.gov.in.

YOGEN V. MAHADEVIA (Advocate)

IMPORTANT: (1) Kindly ensure that you have registered with my

Computer System, your correct & latest E-mail IDs. (2) When you generate fresh E-mail IDs and register the

same, with my Computer System, ensure that you conveyed me your earlier E-mail IDs, now not in use, so that the same, can be deleted from my E-mail IDs List, maintained in my Computer System.

(3) Keep your Computer, Virus-free. Run Anti-virus Software, at least once in a day.

(4) See that your Mail Box, does not remain full, otherwise, my Communication, may return back,






undelivered. If, this is repeated, I may be forced to delete your E-mail ID, from IDs List, maintained by me, in my Computer System.

(5) My Circulars, News Items and Refresh Your Memories Items, are of high MB, say, from 500 KB to 4 MB. Maintain adequate capacity level, in your Computer, to receive such high capacity Mails. However, I am constantly making attempts to minimize the Memory of my Mails.

SOME IMPORTANT HINTS, FOR SSI UNITSSOME IMPORTANT HINTS, FOR SSI UNITS

What is a Small Scale Industry, under the Central Excise Law? Under the Small Scale General Exemption Notification, 8/2003-C.E.,

dated 1-3-2003, any Manufacturer of Excisable Goods, who, in the previous Financial Year, manufactured & cleared from his Factory, Dutiable, as well as, Exempted Goods, of Basic Price or Transaction Value or Selling Price, worth Rs. 4.00 Crore or less, is a Small Scale Unit, for the new Financial Year, under the Central Excise Law. The Value-limit of Rs. 4.00 Crore is called as, ELIGIBILITY LIMIT, for a Manufacturer, to be a SSI Unit, under the Central Excise Law, in the new Financial Year. Investment in Plant & Machinery, by a Manufacturer, is not required to be taken into consideration, for adjudging or deciding, as to, whether, the Manufacturer, is a Small Scale Unit or not, under the Central Excise Law.

1. Any Manufacturer of Excisable Goods, who has remained within the Eligibility Limit of Rs. 4.00 Crore, in the previous Financial Year, is said to be a Manufacturer, ELIGIBLE for claiming the SSI Benefits, under the abovementioned Small Scale Notification, in the new Financial Year.

2.Now, are you a Manufacturer of Excisable Goods, ELIGIBLE to claim the benefits of the abovementioned Small Scale Notification?

3. If, your Answer is YES, then you can pay Central Excise Duty, with effect from 1st April, 2010, on Quarterly Basis, by 5th of the 4th Month, for the Quarter, just ended. Thus, Central Excise Duty, on Excisable Goods, cleared during the Quarter of April – June, 2010, is to be paid by 5th of July, 2010, if, required to be paid Manually & so on, IRRESPECTIVE OF THE FACT that (1) You are a SSI Unit, first cleared Excisable Goods, under exemption upto the Exempted Value-limit of Rs. 1.50 Crore, under the abovemetioned SSI Notification & then started pay Central Excise Duty, at Normal Rate; OR (2) You first cleared some Excisable Goods, under exemption, say, upto a Value-limit of Rs. 30/-





Lakh & then opted for paying Central Excise Duty, at the Normal Rate; OR (3) You started paying Central Excise Duty, at Normal Rate, right from the beginning of the Financial Year; OR (4) You opted for either for (1) or (2) or (3), above & crossed the Value-limit of Rs. 4.00 Crore, in the Financial Year but in the same Financial Year, till the said Financial Year, is over, you can pay the Central Ecise Duty, on Quarter Basis only.

4. Under any of the above circumstances, as a SSI Unit, under the Central Excise Law, you can file Quarterly E.R.-3 Return only, on the 10th of the 4th Month, for the Quarter, just ended. Thus, the E.R.-3 Return, for the Quarter of April – June, 2010, is to be filed by the eligible SSI Unit, on 10th July, 2010.

5. If, you have paid TOTAL Central Excise Duty, in the previous Financial Year, 2009-2010, of Rs. 10/- Lakh or more, by Cash or Cheque or by E-payment + from your CENVAT Credit Account, you will pay Central Excise Duty, with effect from 1-4-2010, on Quarterly Basis, only but through the E-payment Internet Banking System, for the Quarter of April – June, 2010, by 6th July, 2010 & so on, under the Automation of Central Excise and Service Tax, through the Link, namely, http://www.gov.aces.in. This is equally true for the Quarterly E.R.-3 Returns, to be filed by eligible SSI Units.

6. The Value-Limits of Rs. 1.50 & Rs. 4.00 Crore, in case of M.R.P. or R.S.P. Based Valuation Excisable Goods, to be computed on M.R.P. or R.S.P. Based Valuation, as per Section 4-A of the Central Excise Act, 1944 only.

SOME IMPORTANT GUIDELINES & REFERENCES, FOR YOUSOME IMPORTANT GUIDELINES & REFERENCES, FOR YOU

1.1. What is the Procedure, to clear the CENVAT Inputs or Capital Goods, for Job-work, under Rule 4(5)(a) of the CENVAT Credit Rules, 2004? SEE MY “REFRESH YOUR MEMORIES” ITEM NO., 4/2009-2010, DATED 24TH JUNE, 2009.

2.2. What is the Procedure, to clear the CENVAT Inputs or Capital Goods, for Job-work, under Rule 4(5)(a) of the CENVAT Credit Rules, 2004? SEE MY “REFRESH YOUR MEMORIES” ITEM NO., 9/2009-2010, DATED 23RD AUGUST, 2009.

3.3. What is the Procedure, to clear the Non-CENVAT Inputs, from your Factory or dispatch such Inputs, directly to the Job-worker, under the Job-work Notification, 214/86-C.E., dated 25-3-1986? SEE MY “REFRESH YOUR MEMORIES” ITEM NO., 8/2009-2010, DATED 15TH AUGUST, 2009.

4.4. Do you want to know the Procedure, to be followed by you, under Rule 16 of the Central Excise Rules,


http://www.gov.aces.in/




2002, for bringing back your own Duty-paid Finished Excisable Goods, to your Factory, being not delivered to the Buyer or the Buyer, has rejected them? SEE MY “REFRESH YOUR MEMORIES” ITEM NO., 17/2009-2010, DATED 11TH JANUARY, 2010.

5.5. Do you want to know, about the Finance Act, 2010, enacted on 10th May, 2010? SEE MY NEWS ITEM NO., 4/2010-2011, DATED 15TH MAY, 2010

6.6. Do you want to know, as to, what is an Input Service Distributor, under the Service Tax Law? SEE MY CIRCULAR NO., 5/2010-2011, DATED 12TH MAY, 2010.

Have you not received any of theHave you not received any of the abovementioned Mails, from me? Do you wantabovementioned Mails, from me? Do you want

me to Mail you, any of the above Items. Send meme to Mail you, any of the above Items. Send me a Request Mail.a Request Mail.

CIRCULARS, NEWS ITEMS & “REFRESH YOURMEMORIES” ITEMS, TOCIRCULARS, NEWS ITEMS & “REFRESH YOURMEMORIES” ITEMS, TO COME, FROM MECOME, FROM ME

1. WAIT FOR MY “REFRESH YOUR MEMORIES” ITEM, ON JOB-WORK PROCEDURE, FOR UNREGISTERED OR NON-DUTY-PAYING SSI UNITS.

2. WAIT FOR MY “REFRESH YOUR MEMORIES” ITEM, AT THE END OF MAY, 2010, ON YOUR STATUTORY OBLIGATIONS, TO BE FULFILLED BY YOU, IN JUNE, 2010, UNDER THE CENTRAL EXCISE, SERVICE TAX & CUSTOMS LAWS.

3. WAIT FOR MY NEWS ITEM, ON FOREIGN EXCHANGE RATES, AT THE END OF MAY, 2010, AS APPLICABLE FOR THE MONTH OF JUNE, 2010, FOR IMPORT - EXPORT GOODS.

4. WAIT FOR MY CIRCULAR, ON PROCEDURE, FOR EXPORT OF EXCISABLE GOODS, TO NEPAL & BHUTAN, WITHOUT PAYMENT OF CENTRAL EXCISE DUTY.

5. WAIT FOR MY UP-DATED CIRCULAR, ON IMPORT OF TAXABLE SERVICES, UNDER THE TAXATION OF SERVICES (PROVIDED FROM OUTSIDE INDIA AND RECEIVED IN INDIA) RULES, 2006, WITH 4 + 8 NEW TAXABLE SERVICES, INCORPORATED THEREIN.





6. WAIT FOR MY UP-DATED CIRCULAR, ON EXPORT OF TAXABLE SERVICES, UNDER THE EXPORT OF SERVICES RULES, 2005, WITH 4 + 8 NEW TAXABLE SERVICES, INCORPORATED THEREIN.

7. WAIT FOR MY CIRCULAR, ON REFUND OF SERVICE TAX, PAID ON SPECIFIED TAXABLE SERVICES, USED IN CONNECTION WITH EXPORT OF GOODS.

8. WAIT FOR MY REFRESH YOUR MEMORIES ITEM, ON REBATE OF CENTRAL EXCISE DUTY, PAID ON INPUTS, USED IN PRODUCTION OF EXPORT GOODS, AS PER RULE 18 OF THE CENTRAL EXCISE RULES, 2002.

9. WAIT FOR MY CIRCULAR, ON PROCEDURE, TO BE FOLLOWED BY A NORMAL MANUFACTURER, FOR DISPATCH OF THE EXCISABLE GOODS, TO A 100% EOU, UNDER C.T.-3 CRETIFICATE, ISSUED BY THE SAID 100% EOU.

10. WAIT FOR MY USEFUL “HINTS – INFORMATIONS – KNOWLEDGE” UNDER THE CENTRAL EXCISE, SERVICE TAX & CUSTOMS LAWS.

CAN GST COME IN NEAR FUTURE?

IMPOSSIBLE!!

SOME HINTS OR INFORMATIONS OR KNOWLEDGE FOR YOUDo you know that as per Rule 4(7) of the CENVAT Credit Rules, 2004, as a Manufacturer of Excisable Goods or as a Service Provider, providing taxable Service, you can take CENVAT Credit of Service Tax, charged to you, on your Input Services, by your Service Provider, only after you make full payment of the Bill or Invoice of your Service

Provider, including the amount of Service Tax? This means that till you make the payment of the full Bill or Invoice of your Service Provider, you cannot take CENVAT Credit of Service Tax, charged by your Service Provider, on your Input Services, even though, you have already received the taxable Input Services & consumed them.





Do you know, as to, what is an Input Service, for you, on which you can take CENVAT Credit of Service Tax,

charged by your Service Provider? The answer is very simple. Any taxable Service, you take or procure,

as a Manufacturer, from a Service Provider, IN CONNECTION WITH YOUR BUSINESS ACTIVITY OF PRODUCTION &

SALE OF YOUR FINISHED EXCISABLE GOODS, is your Input Service. Any taxable Service, you take or procure,

as a Service Provider, from another Service Provider, IN CONNECTION WITH YOUR BUSINESS ACTIVITY OF PROVISION

OF YOUR TAXABLE OUTPUT SERVICES, is your Input Service. Any taxable Service, which is put into your Business Activity of Production & Sale of your Finished Goods or put into your Business Activity of provision of your taxable Output Service, is your Input Service and after you make full payment of Service Charges, without taking anybody’s advice, take the CENVAT Credit of Service Tax.

Only two Persons, can get CENVAT Credit of Service Tax, paid by them, on their Input Services, namely, (1) A Manufacturer of Excisable Goods & (2) A Service Provider, providing taxable Output Service. A Trader, cannot get CENVAT of Service Tax, paid by him & therefore, it is a cost for him.

You should also note that for taking CENVAT Credit of Central Excise Duty or Countervailing Duty of Customs (Old CVD) & Additional Duty of Customs (4% ADC or New CVD), paid on the Inputs or Raw Materials, you can take CENVAT Credit, immediately on receipt of the said Inputs or Raw Materials, in your Factory, even though, you have not made the payment of the Bill of your Supplier. This is also true, for Capital Goods, received in your Factory, subject to taking 50% CENVAT Credit, in the first Financial Year & balance 50%, in the subsequent Financial Year. However, the CENVAT Credit of 4% Additional Duty of Customs, paid on Imported Goods, is admissible instantly & full, by a single CENVAT Credit Entry. NOTE THAT A SERVICE PROVIDER, IS PRHIBITED FROM TAKING CENVAT CREDIT OF 4% ADDITIONAL DUTY OF CUSTOMS, PAID BY HIM, ON HIS IMPORTED INPUTS OR CAPITAL GOODS.

I N D E X Page No.





1. WHAT IS E-FILING OF CENTRAL EXCISE RETURN?........................2

(1) 1-4-2010 – E-Filing of Central Excise Return ………………………………..2

(2) Automation Of Central Excise & Service Tax System (aces)…………..2

(3) Trade Person Identification Number (TPIN)………………………………….3

(4) Tariff & Non-Tariff Notifications…………………………………………………..4

2. CENTRAL EXCISE TARIFF NOTIFICATIONS ………………………….. 4

(1) Tariff Notification, Covering A Single Excisable Goods – ……………….4

No Serial Entry Number

(2) Tariff Notification, Covering Multiple Excisable Goods, …………………4

With Serial Entry Numbers

3. CENTRAL EXCISE NON-TARIFF NOTIFICATIONS …………………... 5

(1) Non-Tariff Central Excise Notifications – Means Procedural ………….5

Notification Non-Tariff Central Excise Notifications – May Require Payment Of Central Excise Duty But With Specified Procedure

(2) Central Excise Non-Tariff Notifications – May Permit …………………..5

Clearance of Excisable Goods, Without Payment Of Central Excise Duty But With Specified Procedure

(3) Central Excise Non-Tariff Notifications – whether clearance ………...6

with or without Payment of Duty but with Mandatory Procedure

(4) Central Excise Tariff Notifications – may also have, ……………………7

Sometimes, Terms & Conditions, with Procedure

(5) Central Excise Tariff Notifications – May Also Have, ……………………7

Sometimes, Terms & Conditions, With Procedure

(6) First Check-Up the Applicable Central Excise Tariff or ……………….. 8Non-Tariff Notification & Serial Entry Number, if any

4. ONE & THE SAME EXCISABLE GOODS, CAN BE CLEARED ………..8UNDER VARIOUS CENTRAL EXCISE TARIFF & NON-TARIFF NOTIFICATIONS, WITH PAYMENT OR WITHOUT PAYMENT OF CENTRAL EXCISE DUTY [SEE ITEMS (i) TO (xviii)]

5. GENERAL GUIDELINES FOR TARIFF NOTIFICATION…………….. 12

6. GUIDELINE FOR NON-TARIFF NOTIFICATIONS…………………… 13





7. QUANTITY OF CENVAT INPUT OR CAPITAL GOODS ……………… 14CLEARED, AS SUCH, CANNOT REFLECT, IN MONTHLY (NON-SSI UNITS & 100% EOUS) OR QUARTERLY (SSI UNITS) CENTRAL EXCISE RETURN, FILED BY THE MANUFACTURER OR HALF YEARLY S.T.-3 RETURN, FILED BY THE SERVICE PROVIDER BUT DEBIT OF CENVAT CREDIT, DOES APPEAR IN THE RETURNS

(1) E.R.-1, E.R.-2 & E.R.-3 – Not for CENVAT Inputs or Capital ……… 14Goods, Removed as such

(2) E.R.-1, E.R.-2 & E.R.-3, are Returns, for Finished Excisable Goods..14

(3) Service Provider – S.T.-3 Return ……………………………………………….15

(4) E.R.-1, E.R.-2 & E.R.-3, Do contain Debit Entries of CENVAT ……… 15Credit, when CENVAT Inputs or Capital Goods, Removed as such but not Quantity

(5) No Place for Inputs or Capital Goods, IN E.R.-1, E.R.-2 or E.R.-3…..16

(6) No Place for Non-Duty paid Job-Work Transactions, in E.R.-1, ……16E.R.-2 or E.R.-3

8. NO PLACE FOR CENVAT INPUTS OR CAPITAL GOODS, SENT …………17BY THE PRINCIPAL MANUFACTURER OR CENVAT FACTORY, TO JOB-WORKER, UNDER RULE 4(5)(A) OR RULE 4(6) OF THE CENVAT CREDIT RULES. 2004, IN E.R.-1, E.R.-2 OR E.R.-3

(1) Transactions, Under Rule 4(5)(A) of the CENVAT Credit Rules, ……. 17

2004 & E.R.-1, E.R.-2 OR E.R.-3

(2) Transactions, under Rule 4(5)(a) of the CENVAT Credit ……………….17

Rules, 2004 & E.R.-1, E.R.-2 OR E.R.-3

IMPORTANT ………………………………………………………………………….. 18

Some important hints, for SSI units …………………………………………… 19

Some Important Guideline & References, for you …………………………20

Circulars, News Items &Refresh Your Memories Items, to come ……… 21

Some Hints or Informations or Knowledge for you ………………………..22

Index …………………………………………………………………………………. 23

SOME HINTS FOR YOUSOME HINTS FOR YOU(1)(1) Do you know that you can export your Inputs or Capital Goods,Do you know that you can export your Inputs or Capital Goods,

without payment of Central Excise Duty or without reversal ofwithout payment of Central Excise Duty or without reversal of CENVAT Credit, to a Foreign Country, even though you haveCENVAT Credit, to a Foreign Country, even though you have availed of CENVAT Credit of Central Excise Duty or Countervailingavailed of CENVAT Credit of Central Excise Duty or Countervailing Duty of Customs and Additional Duty of Customs, paid thereon, inDuty of Customs and Additional Duty of Customs, paid thereon, in





a very similar manner, as you, export your Finished Excisablea very similar manner, as you, export your Finished Excisable Goods, to a Foreign Country?Goods, to a Foreign Country? YES, YOU CAN EXPORT YOURYES, YOU CAN EXPORT YOUR CENVAT INPUTS OR CENVAT CAPITAL GOODS, TO ACENVAT INPUTS OR CENVAT CAPITAL GOODS, TO A FOREIGN COUNTRY, WITHOUT PAYMENT OF CENTRALFOREIGN COUNTRY, WITHOUT PAYMENT OF CENTRAL EXCISE DUTY OR WITHOUT REVERSAL OF CENVAT CREDIT,EXCISE DUTY OR WITHOUT REVERSAL OF CENVAT CREDIT, TAKEN BY YOU.TAKEN BY YOU. You should follow, Procedure of UT-1/B-1 Bond;You should follow, Procedure of UT-1/B-1 Bond; A.R.E.-1; Export Invoice; Packing List; Excise Invoice; Shipping BillA.R.E.-1; Export Invoice; Packing List; Excise Invoice; Shipping Bill & Bill of Lading, with submission of Proof of Export, in ANNEXURE-& Bill of Lading, with submission of Proof of Export, in ANNEXURE-19, under Rule 19 of the Central Excise Rules, 2002, read with, the19, under Rule 19 of the Central Excise Rules, 2002, read with, the Notification, 42/2001-C.E.(N.T.), dated 26-6-2001.Notification, 42/2001-C.E.(N.T.), dated 26-6-2001. A Merchant-A Merchant-Exporter, can also do this.Exporter, can also do this.

(2)(2) Similarly, you can export your CENVAT Inputs & Capital Goods, onSimilarly, you can export your CENVAT Inputs & Capital Goods, on which you have taken CENVAT Credit, on payment of Centralwhich you have taken CENVAT Credit, on payment of Central Excise Duty, equal to CENVAT Credit, originally availed of and thenExcise Duty, equal to CENVAT Credit, originally availed of and then claim Rebate of the said Central Excise Duty, under Rule 18 of theclaim Rebate of the said Central Excise Duty, under Rule 18 of the Central Excise Rules, 2002, read with, the Notification, 19/2004-Central Excise Rules, 2002, read with, the Notification, 19/2004-C.E.(N.T.), dated 6-9-2004C.E.(N.T.), dated 6-9-2004.. AA Merchant-Exporter, canMerchant-Exporter, can also do this.also do this.

(3)(3) HOWEVER, IF, YOU EXPORT YOUR CENVAT INPUT ORHOWEVER, IF, YOU EXPORT YOUR CENVAT INPUT OR CAPITAL GOODS, WITHOUT PAYMENT OF CENTRAL EXCISECAPITAL GOODS, WITHOUT PAYMENT OF CENTRAL EXCISE DUTY, AS PER (1), ABOVE, CAN YOU GET THE CASHDUTY, AS PER (1), ABOVE, CAN YOU GET THE CASH REFUND, UNDER RULE 5 OF THE CENVAT CREDIT RULES,REFUND, UNDER RULE 5 OF THE CENVAT CREDIT RULES, 2004, OF ACCUMULATED CENVAT CREDIT?2004, OF ACCUMULATED CENVAT CREDIT? For the correctFor the correct Answer, you have to carefully read first Two Lines, of RuleAnswer, you have to carefully read first Two Lines, of Rule

5(1) of the CENVAT Credit Rules, 2004.5(1) of the CENVAT Credit Rules, 2004.


20.05

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