• Mar
  • 30
  • 2011

Excise Duty- Clarification issued regarding exemption from filing of ER-4, ER-5 and ER-6 returns

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LETTER : [F.NO.209/03/11-CX-6], DATED 15-2-2011

The undersigned is directed to refer to Notification No. 20/2010-Central Excise (NT), dated 18.05.2010, Notification No. 21/2010-Central Excise (NT), dated 18.05.2010, Notification No. 17/2006-Central Excise (NT), dated 01.08.2006 and Notification No. 39/2004-Central Excise (NT), dated 25.11.2004.

2. It has been brought to the notice of the Board that there is lack of clarity regarding the exemption from filing the Annual Financial Information Statement (ER-4) prescribed under Rule 12(2)(a) of the Central Excise Rules, 2002 and the annual declaration (ER-5) and the monthly return (ER-6) relating to Principal Inputs prescribed under Rule 9A(1) and Rule 9A(3) of the CENVAT Credit Rules, 2004 respectively.

3. Notification No. 17/2006-Central Excise (NT), dated 01.08.2006, as amended, issued under Rule 12(2)(b) of the Central Excise Rules, 2002, inter alia, exempts assessees who paid duty of excise less than Rs. 1 crore in the preceding financial year, from filing the ER-4 return. Similarly, Notification No. 39/2004 Central Excise (NT), dated 25.11.2004, as amended, issued Rule 9A(4) of the CENVAT Credit Rules, 2004, exempts the specified class of manufacturers who paid duty of excise less than Rs. 1 crore in the preceding financial year, from filing ER-5 declaration and ER-6 return. Notification No. 20/2010-Central Excise (NT) and Notification No. 21/2010-Central Excise (NT) both dated 18.05.2010, prescribe that assessee who paid total duty of Rs. 10 lakhs or more including the duty paid by utilization of CENVAT credit in the preceding financial year, shall file such return/declaration electronically. A doubt has arisen on account of the different threshold limits prescribed for exemption from filing these returns and for filing these returns electronically.

4. The matter has been examined. The exemption provided under Notification No. 17/2006-Central Excise (NT), dated 01.08.2006 and Notification No. 39/2004-Central Excise (NT), dated 25.11.2004, as amended, is available to inter alia assessee who paid duty of excise less than Rs.1 crore including the amount paid by utilization of CENVAT credit. It is, therefore, clarified that the assessees or class of assessees who are not required to file the ER-4, ER-5 & ER-6 returns because of the above exemption, are not required to file such returns electronically even it the duty paid by them including the amount paid by utilization of CENVAT credit in the preceding financial year exceeds Rs.10 lakhs.

5. Trade and industry as well as field formations may be informed suitably.


5 Responses to “Excise Duty- Clarification issued regarding exemption from filing of ER-4, ER-5 and ER-6 returns”

  1. y v krishna reddy says:

    Dear Sir,

    please clarify that is there any exemption for filing er-4,er-5&er-6 returns for assessee who paid 1 crore duty, but consumption of inputs is very less.

  2. VISHWANATH says:

    We have fiiled E R 5 and E R 6 Returns manualy (not Electronicaly-online)we have therefore issued SCN.We have ack.copies of above returns.

    Wheter penalty is applicable ?

  3. Shruti Arora says:

    Dear Sir

    Thanx for this info. The scan copy of trade notice is indeed available at websites of many commissionerates. The authority for issue of said instructions is CBEC itself, so these are applicable pan india

    Regards
    S Arora

  4. Renjith M.G. says:

    The trade Notice has been issued by Commisonerate, Vadodara, Indore etc. Please check their website.
    centralexcisevadodara1.nic.in,centralexciseindore etc.

  5. C P BAHRTIA says:

    DearSir,

    The article about “Excise Duty- Clarification issued regarding exemption from filing of ER-4, ER-5 and ER-6 returns” neiher have the name of the office nor the name of the signatory. Please publish full letter with these detail.

    Thanks

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