De-mystifying process of excise registration surrender.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2014 We are a SSI unit.In previous financial year (i.e.,2013-14), the unit remained closed for half the year. So our turnover was down from Rs 350 lacs to Rs 143 lacs. Due to personal problems and un-viable market scenerio, we won't be able to run the unit for the whole year 14-15. At most, we could try to achieve a turnover of around 1 to 1.25 crores in FY 14-15.Thus, we do not at present need registration with CE authorities.
We have surrendered excise registration online thru ACES on 31st March'14 itself, and sent original RC alongwith declaration by registered AD post to the Range Supdt. with copy to supdt. registration in the division office on 31/3/14. However, despite passage of 12 days, we are yet to get an official confirmation of acceptance of our surrender request by the department. Neither any receipt is generated from within ACES, nor any email is received from the deptt.
How do we know that our surrender request is accepted by the deptt. and our RC is cancelled wef. 1/4/14 or not? When we check assessee status from ACES, it still shows as ACTIVE till today,ie. 12th april'14.
How do we clear the finished goods lying in stock till we are informed of cancellation of RC? We are still able to login to ACES but under "View RC" option, it is mentioned that PV process is in between, so RC could not be viewed. What PV (Physical verification") the Range or division office would carry out, and by when? Pls help us understand the whole process of de-registration.

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2014 Still department has not issued any confirmation letter/email regarding acceptance of our surrender request made on 31st March'14.
What to do now? Are we still registered assessee or de-registered wef 1/4/14? Pls someone help us.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2024 The process of surrendering Excise registration can sometimes be bureaucratic and involve various steps that may not be immediately clear. Here’s a step-by-step explanation to help demystify the process based on the situation you've described:

### 1. Submission of Surrender Request

- **Online Submission**: You have already submitted the surrender request online through ACES (Automation of Central Excise and Service Tax). This is the correct procedure.

- **Physical Submission**: You also sent the original RC (Registration Certificate) along with a declaration by registered AD post to the Range Superintendent, with a copy to the Superintendent Registration in the Division Office.

### 2. Confirmation of Surrender

- **Acknowledgment**: Normally, upon successful submission and acceptance of the surrender request, ACES should generate an acknowledgment or receipt. However, in your case, it seems no receipt or email confirmation has been received yet.

- **Assessee Status**: Checking the assessee status on ACES still shows as ACTIVE, which indicates that the surrender process may not have been completed or updated in the system yet.

### 3. Pending Verification (PV) Process

- **PV Process**: The "PV process" mentioned refers to Physical Verification that the Range or Division Office may conduct to verify the assets and stocks of the company before processing the surrender request.

- **Purpose**: This verification ensures that there are no pending issues or discrepancies before canceling the RC. It may involve checking the physical stock of finished goods and other assets related to excisable goods.

### 4. Timeline and Next Steps

- **Time Frame**: Typically, the department should inform you of the status of your surrender request within a reasonable time frame. Since you've already waited for 12 days without confirmation, it's advisable to follow up directly with the Range Superintendent or Division Office.

- **Contact Point**: Contact the Range Superintendent's office or the Superintendent Registration directly. Provide them with your acknowledgment or reference number if available. Ask for an update on the status of your surrender request and when you can expect confirmation.

- **Clearing Finished Goods**: Until you receive official confirmation of cancellation of RC, you should continue to maintain compliance with excise regulations. You can seek clarification from the department on how to clear the finished goods in stock once the surrender process is confirmed.

### 5. Document Retention and Compliance

- **Documentation**: Keep all correspondence, acknowledgment receipts, and proofs of submission securely. These documents will be important for any future audits or inquiries.

- **Compliance**: Continue to comply with excise regulations until the cancellation of RC is confirmed. This includes filing returns and maintaining records as required by law.

### Conclusion

Given the delay in receiving confirmation, it's crucial to proactively follow up with the Range Superintendent or Division Office to ensure your surrender request is processed smoothly. Document all communications and maintain records for your reference. If necessary, seek assistance from a local consultant or legal advisor familiar with excise procedures to navigate any complexities that may arise.

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