Exemption limit clarification for er4 return filing

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Puneet Kejriwal (Querist)
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18 April 2014 Dear Sir/Ma'm,

Recently we received show cause notice for non-filing of ER4 return stating that our payment of duty including utilization of credit exceeds Rs. 10 Lakhs and we are liable to file as per Rule12(2)(a) of CE rules 2002.
the exemption limit for ER4 was Rs. 100 Lakhs and the same is still being informed to us by various excise officers and experts in the field. There is great confusion in the excise dept. regarding this and even they are not aware of any such notification that amends the rules to include ER4 return filing for units paying duty above Rs. 10 Lakhs. even after receiving the show cause notice, we are still being told that the exemption limit of rs. 100 lakhs holds and that we should send a letter to the excise office stating that as our duty is less than Rs. 100 lakhs, we are not required to file ER$.
Please guide me as to how I should proceed. A little online research about this suggests that such confusion exists as a new notification amending the CE Rules 2002 states that if duty above Rs. 10 lakhs is paid, then ER4 is to be filed, but the previous rule that if duty paid is below Rs. 100 lakhs, those are exempted from ER4 filing, still holds and has not been withdrawn. this creates contradictory rules in the CE Rules.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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18 April 2014 If you have to pay the excise duty less than 1 crore from cenvat credit and pla account then no need to file ER-4. you should consult with any professional. may be any other issue will be in the show cause notice.

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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Puneet Kejriwal

Puneet Kejriwal (Querist)
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18 April 2014 Dear Sir,

Thank you for your reply. however the show cause notice clearly states that it has been served as our duty exceeded Rs. 10 Lakhs.

Even though, this issue is clarified in circular No. F.No.209/03/11-CX-6, issued by the Ministry of Finance dated 15.02.2011 and states that units paying duty below Rs. 1 crore are exempt from filing ER4, ER5 and ER6 returns.

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