Procedure for electronic filing of Central Excise and Service Tax returns and for electronic payment of excise duty and service tax

Government of India

Ministry of Finance Department of Revenue

(Central Board of Excise and Customs)

New Delhi

Dated, the 28th September,2011

To
All Chief Commissioners of Customs &Central Excise,
All Chief Commissioners of Central Excise,
All Chief Commissioners of Large Taxpayers Unit.

Sub.: Procedure for electronic filing of Central Excise and Service Tax returns and for electronic payment of excise duty and service tax.

Sir/madam,

1.Attention is invited to Circular No. 919 / 09 / 2010 - CX dated 23rd March 2010 prescribing the procedure for electronic filing of Central Excise and Service Tax returns and payment of Central Excise duty and Service Tax by all the assessees who had paid Central Excise duty and Service Tax of Rs. 10 Lakh or more (including payment by utilisation of Cenvat credit) in the previous financial year. Attention is also invited to Notifications No. 21/2011-Central Excise(NT) & 22/2011-Central Excise (NT) both dated 14.09.2011 and No. 43/2011-ST dated 25.08.2011 prescribing mandatory electronic filing of Central Excise and Service Tax returns.

2. DG (Systems) has prepared comprehensive instructions outlining the procedure for electronic filing of Central Excise duty and Service Tax returns and electronic payment of taxes under ACES. The same is annexed. The said instructions outline the registration process for new assessees, existing assessees, non–assessees and for Large Taxpayers Unit assessees, steps for preparing and filing of return, use of XML Schema for filing dealer’s return, procedure for obtaining acknowledgement of e-filed return, procedure for e-payment etc. It is requested to sensitize the concerned officers as well as the trade and industry regarding the said instructions.

3. As a large number of taxpayers would be required to file Central Excise and Service Tax return electronically, it is requested that the trade and industry may be provided all assistance so as to help them in adopting the new procedure.

4. Field formations and trade/industry/service provider may also be informed suitably.

5. Hindi version will follow.

Yours faithfully,

(V.P.Singh)

Under Secretary (C.X.6)

Click here for : Annexure

CENVAT Credit (Fourth Amendment) Rules, 2011 - Amendments in Rule 9A, 12 and 17

[(TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (1) ]

Government of India

Ministry of Finance

Department of Revenue

Notification No. 21/2011-Central Excise (N.T)

New Delhi, the 14th September, 2011

G.S.R ( E ) . – In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 ( 1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 2002, namely :-

1. Short title and commencement.- (1) These rules may be called the Central Excise(Fourth Amendment ) Rules, 2011.

(2) They shall come into force on the 1st day of October, 2011.

2. In the Central Excise Rules, 2002, –

(a) in rule 12, -

(i) in sub-rule (1), the fourth proviso shall be omitted;

(ii) in sub-rule (2), the proviso to clause (a) shall be omitted;

(iii) after sub-rule (4), the following sub-rule shall be inserted, namely :-

“(5) Every assessee other than assessees availing the exemption under notification No. 49/2003-Central Excise, dated the 10th June 2003 or notification No. 50/2003-Central Excise, dated the 10th June 2003, shall file electronically the return or the statement, as the case may be, specified in this rule.”

(b) in rule 17,-

(i) in sub-rule (3), after the words “The unit shall,” the word “electronically” shall be inserted.

(ii) the proviso to sub-rule (3) shall be omitted.

F.N0. 201/10/2011-CX.6

(V.P.Singh)

Under Secretary to the Government of India

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II , Section 3, sub-section (i), dated 1st March, 2002 vide Notification No. 4/2002-Central Excise (N.T) dated the 1st March, 2002, [GSR 143(E), dated the 1st March, 2002] and were last amended, vide Notification No. 19/2011-Central Excise (N.T) dated 28th July,2011.

______________________________________

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 22 / 2011-Central Excise (N.T.)

New Delhi, the 14th September, 2011

G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. Short title and commencement .- (1) These rules may be called the CENVAT Credit ( Fourth Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of October, 2011.

2. In the CENVAT Credit Rules, 2004,-

(a) in rule 9A, -

(i) in sub-rule (1), the second proviso shall be omitted;

(ii) in sub-rule(3), the proviso shall be omitted;

(iii) after sub-rule (4), the following sub-rule shall be inserted, namely :-

“(5) Every assessee shall file electronically, the declaration or the return, as the case may be, specified in this rule.”

[F.No.201/10/2011-CX 6]

(V.P.Singh)

Under Secretary to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) dated the 10th September,2004 vide notification No. 23/2004-Central Excise (N.T.) dated the 10th September 2004, [G.S.R.600(E), dated the 10th September,2004] and last amended by notification No. Notification No.13/2011-Central Excise (N.T.) dated 31st March, 2011.

Post Budget (2011-12) Notifications

Post Budget Notifications after discussion of Finance Bill in Parliament.

Procedure for electronic filing of Central Excise and Service Tax returns and for electronic payment of excise duty and service tax

DG (Systems) of CBEC has prepared comprehensive instructions outlining the procedure for electronic filing of excise and service tax return and electronic payment of taxes under ACES. The said instructions outline the registration process for new assessees, existing assessees, non–assessees and for Large Taxpayers Unit assessees, steps for preparing and filing of return, using of XML Schema for filing dealers’ return, procedure for obtaining acknowledgement of E-filed return, procedure for E-payment etc.

Click here for the text of the circular No. 919 / 09 / 2010 - CX. containing the above instructions.

Indirect Tax Budget Notifications

CBEC has issued various notifications to give effect to budget 2010-11 provisions.

Click here for all the indirect tax budget notifications.

The Central Excise (Amendment) Rules, 2010 - Amendment in Rules 8 and 12

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the Central Excise (Amendment) Rules, 2010 further to amend the Central Excise Rules, 2002.

Click here for the text of the notification no. 04/2010-Central Excise (N.T.).

Clarification regarding labelling and repacking etc. amounting to manufacture

Excise Circular : Circular No. 910/30/2009 - CX

It has been brought to the notice of Board that certain dealers are receiving liquid chemicals in bulk in containers and offloading the same at the dealers’ premises or godown into drums of 200ltrs for subsequent marketing of these materials to customers. Doubts have been raised as to whether such activity would amount to manufacture in terms of Chapter Note 10 to Chapter 29.

The issue is clarified in the circular. Click the title for the text of the circular.

Clarification on issues related to reversal of cenvat credit on WIP/ finished goods written off in the books of accounts

Excise Circular : Circular No. 907/27/2009-CX

As per Rule 3(5B) of CENVAT Credit Rules, 2004, if the value of inputs is fully written off, then the manufacture is required to pay an amount equal to cenvat credit taken. However, there is no provision to demand reversal of credit taken on inputs which have gone into manufacture of work in progress (WIP), semi finished goods and finished goods which have also been written off fully in the books of accounts.

As far as finished goods in concerned, it is stated that excise duty is chargeable on the activity of manufacture or production. Even though liability for payment of tax has been postponed to the time of removal of goods for the factory, but still the legal liability to pay the excise duty has been fastened on the goods, when it has been manufactured or produced. Therefore, normally all goods manufactured suffer excise duty at the time of removal, but if the manufactured goods are destroyed due to natural causes etc., Rule 21 of Central Excise Rules, 2002, provides for remission of duty.

As regard writing off work in progress (WIP), it is stated that if the WIP has reached the stage, when it can be considered as manufactured goods, in that case, the same treatment as applicable to finished goods, discussed in para2 above would apply. However, if the activity carried out on the WIP goods cannot be considered as amounting to manufacture, in that case, the said goods should be considered as input and the treatment for reversal of credit applicable to input would be applicable.

Click the title for the text of the circular.