Tuesday, March 4, 2014

Central Excise registration mandatory for importers issuing Cenvatable invoices


on Tuesday, March 4, 2014

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However, Notification No. 17 got recently rescinded vide Notification No. 06/2014-Central Excise (N.T.) dated February 26, 2014 (“Notification No. 06”).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.

Bimal Jain
FCA, FCS, LLB, B.Com (Hons)

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