• Mar
  • 05
  • 2014

Importers issuing Cenvatable invoices to register under Central Excise & to file Quarterly Return

Importers issuing Cenvatable invoices require registration under Central Excise & consequential amendments

Background:

Rule 9 of the Central Excise Rules, 2002 (the Excise Rules) provides the list of persons who are required to obtain registration under the Central Excise Act, 1944 (the Excise Act).  Notification No. 17/ 2013-Central Excise (N.T.) dated December 31, 2013 (Notification No. 17) has proposed amendment under Rule 9(1) of the Excise Rules to include the importers issuing an invoice on which Cenvat Credit can be taken, in the list of persons who are required to obtain registration under the Excise Act. The said notification was to take effect from March 1, 2014.

However, Notification No. 17 was rescinded vide Notification No. 06/2014-Central Excise (N.T.) dated February 26, 2014 (Notification No. 06). Now, once again the said amendment has been introduced along with certain other amendments under the Excise Rules and the Cenvat Credit Rules, 2004 (the Credit Rules), which are discussed as under:

Notification No. 08/2014- Central Excise (N.T.) dated February 28, 2014 (Notification No. 08):

Rule 9(1) of the Excise Rules has been amended to include the importers, issuing an invoice on which Cenvat Credit can be taken, in the list of persons who are required to obtain registration under the Excise Act.

Notification No. 09/2014- Central Excise (N.T.) dated February 28, 2014 (Notification No. 09):

Rule 9(8) of the Credit Rules, provides for the category of persons who are required to submit Quarterly Return (within 15 days from the close of each quarter) in prescribed form to the Superintendent of Central Excise. Rule 9(8) of the Credit Rules has been amended requiring registered importer to file the stated Quarterly Return along with first stage and second stage dealers.

The said Quarterly Return shall be submitted electronically in terms of proviso to Rule 9(8) of the Credit Rules.

Notification No. 10/2014- Central Excise (N.T.) dated February 28, 2014 (Notification No. 10):

Registration under the Excise Act has been made mandatory for the importers issuing an invoice on which Cenvat Credit can be taken vide Notification No. 8. Hence, corresponding changes have been brought in the Central Excise Registration Application Form (Form A-1) to include the importers under the list of Applicants vide Notification No. 10.

Notification No. 11/2014- Central Excise (N.T.) dated February 28, 2014 (Notification No. 11):

New Return Form for furnishing Quarterly Return by first stage/ second stage dealer or registered importer (registered importer inserted vide Notification No. 09) in terms of Rule 9(8) of the Credit Rules has been prescribed by the Central Board of Excise and Customs (“the CBEC”) vide Notification No. 11.

Summary of Changes made in the Excise Rules and the Credit Rules:

  • Registration is made mandatory for importers issuing invoices on which Cenvat Credit can be taken.
  • Registered importer is required to electronically file a Quarterly Return in the prescribed form.
  • Importer is now included in the list of Applicants in Central Excise Registration Application Form, eligible for Central Excise Registration.
  • New Form for Quarterly Return prescribed by the CBEC.

Note: These changes are effective from April 1, 2014.

(Author – Bimal Jain ,FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: bimaljain@hotmail.com)


9 Responses to “Importers issuing Cenvatable invoices to register under Central Excise & to file Quarterly Return”

  1. Saurabh Gupta says:

    Dear Sir,
    I am already registered in central excise under dealer of excisable goods. Need to obtain a seperate registration under Importer to import the excisable goods. Please clarify…

    Saurabh Gupta
    M-7838331199

  2. Rishi Chanan says:

    Dear Sanjay,

    Yes,u need to have a separate registration because practically department officers are insisting on it as they have direction from their superior officer. Though there is no logic behind taking any new registration.

    Regards
    Rishi Chanan,Adv
    M-98158-28244

  3. SANJAY GARG says:

    Dear Sir,
    Please clarify whether a importer already registered with Central Excise
    as Dealer of excisable goods since 2007, and filing returns with the
    department since 2007, regularly manually as well e-filing quarterly returns
    from the day e-filing started, in the format importers are now
    required to file with the department, needs to register again with the
    department.

  4. hardik mundra says:

    Hello i m importing scrap and using it for manufacturing ingots i am having excise unit should i got excise refund for importing scrap

  5. SYED BM says:

    Dear Sir,
    We are importer.We got registered as FIRST STAGE DEALER on 30.03.2014. Now, as per Notification No.:08/2014-Central Excise (N.T.), again we have to obtain regisration as an IMPORTER for issuing of cenvatable invoice?

  6. Hiren Patel says:

    Dear Sir,
    We are importer.We got registered as FIRST STAGE DEALER on 31.03.2014. Now, as per Notification No.:08/2014-Central Excise (N.T.), again we have to obtain regisration as an IMPORTER for issuing of cenvatable invoice?

  7. Payal Shah says:

    Dear Sir

    All existing manufacturers were already registered with Central Excise Department and even Department practically were recognising importers even though there were no corresponding provisions under Central Excise Laws.

    The pertinent question arises whether the importers already registered needs to carry out any procedural work except filing of returns in new format?

  8. Abhay Dagli says:

    Dear Sir

    Please clarify is Registration mandatory for all Importer as Importer is now included in the List of Applicants in Central Excise Registration Application Form, as some dealer may Import but not required to issue Cenvatable Invoices only commercial invoices are required to issue as the purchaser dont require the excise credit

  9. Wilson says:

    I think that These statutory requirement are already existing except the changes made in the return form.

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