Trade Notice No.06/CE/SHG/2011

Dated Shillong the29th March, 2011 

Subject:- Exemption from filing of ER-4, ER-5 & ER-6 returns-reg.

                           Attention of the members of Trade, Industry and all concerned is  invited to reference 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 lacs 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 interalia 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 if the duty paid by them including the amount paid by utilization of CENVAT credit in the preceding financial year exceeds Rs. 10 lacs.

5.      Hindi version will follow.

(Anil Kumar Gupta)

                                                                                                               Commissioner

Authority:

F.No.209/03/11-CX-6

Dated the 15^th February, 2011

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Custom

            New Delhi.