Chennai II Commissionerate
Frequently Asked Questions
I) Q: I have received Capital goods on the 28th March of a particular financial year. Can I take 50% of the CENVAT credit in this financial year and the next 50% immediately on the 1st of April of the succeeding financial year.
A: While there is no restriction on your taking 50% of the credit in the current financial year the rest of the credit is entitled to you only if you had put the subject capital goods to use in the subsequent financial year and not earlier. However, there are certain exceptions to this condition, which may kindly be noted.
II) Q: I am shifting my factory to a premise, which falls under the jurisdiction of a different division. Do I have to obtain a fresh registration or can I have the existing registration transferred.
A: Under the existing provisions registration certificate issued is valid only in respect of the premises for which it has been issued. It is also not transferable. Hence you will have to obtain a fresh registration only.
III)Q: I am SSI Unit enjoying full exemption from payment of duty. Is there any formality I am required to comply with.
A: You have to file a declaration as prescribed in notification No.22/98 CE (NT) dt. 4.6.98 before the 15th April of every financial year. However such declarations need not be filed in every subsequent financial years if the value of clearance of the goods calculated in terms of the exemption notification in question is less by Rs.10 lakhs of the full exemption limit.
IV)Q. I am a 100% EOU having been issued with license under section 58 & 65 of the Customs Act 1962. Should I obtain a separate registration with Excise for receiving duty free indigenous goods.
No. In terms of notification 22/98CE (NT) dt. 4.6.98 as amended such unit is deemed to have been registered under Excise.
V) Q: I am a new unit registered with Excise. What are the important declarations that I should file with the department.
1. Declaration of goods Manufactured/produced - under Rule 173B of the Central Excise Rules, 1944.
2. Price declaration of excisable goods - interms of Rule 173C of the of the Central Excise Rules, 1944.
3. Marketing pattern of the Company under Rule 173C 3 (A) of the Rules.
4. A list in duplicate of all the records which include account, agreement, invoice, price list, returns, statement or any other source document which forms the basis of accounting like sale/purchase invoices, journal voucher, delivery challans and debit or credit note, prepared or maintained by him for accounting of transactions in regard to receipt, purchase, manufacture, storage, sales or delivery of the goods including inputs and capital goods.
VI) Q: I am captively consuming the goods manufactured. What is the Transaction Value I should adopt if in case I am liable to pay the duty on the goods.
A:The Transaction Value of such goods shall be 115% of the cost of production or Manufacture.
VII)Q: I am a Merchant exporter registered with the export promotion council. Am I liable to furnish any bank guarantee or surety when I execute a bond for export of excisable goods without payment of duty.
A. No. No surety would be required, provided you have not come to the adverse notice of the department.
VIII)Q.What is meant by “Pencil credit” or provisional credit.
A: The Range officer is empowered to allow credit in the Running Bond account maintained for export of goods without payment of duty on a request from the assessee enclosing the duly attested Xerox copy of the original AR4 application, pending admission of proof of export. This is known as pencil credit.
IX) Q: I am an exporter who had used both imported and indigenous goods in the production of export goods. Can I receive a rebate of the duty paid on excisable goods used in their production and drawback for the imported materials used.
A: Yes. It is permitted. The same duty cannot be claimed under both the provisions.
X) Q: I am a 100% EOU clearing goods in the DTA produced only out of the indigenous raw materials. What is the rate of duty leviable on such goods.
A: The rate applicable to such goods is the equivalent of Central Excise duty payable on like goods manufactured in India by a DTA Unit. However, if such goods are charged to nil rate or exempted from payment of duty the rate applicable shall be 30% of the aggregate of all duties of Customs leviable on like goods when imported into India.