Circular No. 836/13/2006-CX
F. No. 201/24/2006-CX-6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
October 25th, 2006
Subject: Revised format of ER-1 & ER-3 returns reg;
Attention is invited to Notification No. 23/2006-Central Excise (NT), dated 12.10.2006, wherein revised format of ER-1 & ER-3 returns has been prescribed for all central excise assessees. The revision of the formats has been necessitated following the setting up of the first Large Taxpayer Unit (LTU) in Bangalore. It may, however, be noted that the revised ER 1 return form is applicable for all assessees (large taxpayers and others), although the additional details to be provided by a large taxpayer, have been separately indicated with an asterix.
2. The salient features of the revised format are as follows;
(i) Two new tables have been introduced at Sr. Nos. 4 & 5 of ER-1 return, for seeking information from a large taxpayer who has opted for LTU. Table at Sr. No. 4 seeks information regarding the clearance details of intermediate goods without payment of duty under sub-rule (1) of rule 12BB of the Central Excise Rules, 2002. Similarly, table at Sr. No. 5, seeks details of intermediate goods received from other premises under sub-rule (1) of rule 12 BB of the Central Excise Rules, 2002.
(ii) The table at Sr. no. 7 seeks the abstract of Account Current (Cash payment details) and its utilization. This table also captures the details of self-adjustment of excess duty paid by large taxpayers. The information sought in this table is applicable to all central excise assessees.
(iii) Certain changes have been introduced in the table at Sr. No. 8, which gives details of the CENVAT Credit taken and utilized. A large taxpayer has the option to transfer any excess CENVAT credit (of central excise duty or service tax) accumulated in one manufacturing unit or service providing unit to any other unit under cover of a transfer voucher under rule 12A(4) of the CENVAT Credit Rules, 2004. Hence, additional information regarding credit taken from such interunit transfer and credit utilized towards interunit transfer by a large taxpayer has been sought in the return. Similarly, changes have been made in the said table to capture the details of self-adjustment of excess duty paid through CENVAT credit account. Other details such as credit taken on imported inputs, and credit taken on imported capital goods, are also being sought from all central excise assessees.
2. Similar changes have also been made in the ER-3 return, which are applicable to all SSI Units filing quarterly returns.
3. The new format of ER-1 return is applicable from the month of October, 2006, i.e. in respect of the return to be filed in November, 2006. The new ER-3 return would be applicable for the returns to be filed for the quarter October- December, 2006 to be filed in January, 2006.
4. As the new format of ER-1/ER-3 is applicable for the returns to be filed henceforth, wide publicity may be given so that the assessees are aware of the changed requirements of the law. All the major industry/trade Associations may be informed accordingly. It is clarified that necessary changes are being made in the SERMON software for entering the revised ER-1/ER- 3.