Surrender of central excise registration by ssi unit.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2014 We are SSI unit. In FY 2013-14, our clearance was below 150 lakhs. Due to labour scarcity, dull market conditions, and health problems of Partner, even the current year clearance is expected to be around 100-120 lakhs. Therefore, as we were not supposed to keep the Central Excise registration, we surrendered the same online on 31st March'2014 through the ACES.
However, even after passage of three and half months, the Assistant Commissioner has not communicated acceptance of our surrender request. Nor our status is updated in ACES - it is still showing as ACTIVE. It may be noted that we have filed all returns, and no dues are pending. The Range officer told us that they have submitted verification report of no dues to the division office. Why is our surrender request not being accepted then? What is our status as on today : Are we still a registerd assessee? Do we require to file ER-3 for June ending quarter? In 2014-15, we are issuing computerised invoices in our own format and not on format prescribed under CE rules. The range inspector verbally told us that having complied with all formalities, we are now not bound to act like a registered assessee, and free to issue our own invoices. Would the experts please help us and clarify the matter. Thanks.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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18 July 2014 If you have surrender your registration then no need to maintain excise procedure.

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2014 Thanks Sir. But the Asstt.Commissioner should not take so long in formally communicating acceptance of our surrender request.It is written in ACES faq that as soon as the surrender request is accepted, the assessee status is flagged as INACTIVE in the ACES, and an auto-generated email is sent by the system. We have not received any such email yet.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Here's a detailed explanation addressing your concerns about **surrender of Central Excise registration by an SSI unit**:

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### 1. Status after surrender request is submitted but not yet accepted:

* **Legally, you remain a registered assessee until the surrender is formally accepted by the Commissioner.**
* The ACES system showing your status as **“ACTIVE”** means the surrender has not been officially processed yet.
* Until acceptance, you are technically still under Central Excise law and liable to comply with all procedural requirements including filing returns and maintaining records.

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### 2. Delay in acceptance and communication:

* It is true that the Commissioner’s office should normally process surrender requests within a reasonable time (usually a few weeks).
* If the Range officer says verification report of no dues is submitted, it is likely pending final approval at the Divisional or Commissioner’s level.
* The delay is an administrative issue and you may consider sending a formal reminder or RTI (Right to Information) request if delay extends further.

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### 3. Requirement to file ER-3 (return) for June quarter:

* Since your surrender request is **not yet accepted**, you **are still required to file ER-3 returns** for all relevant periods until the surrender is formally approved.
* Failure to file returns can lead to show cause notices or penalties even if you have applied for surrender.

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### 4. Issuing invoices in your own format:

* Until your Central Excise registration is formally surrendered and accepted, **you are bound by excise invoicing rules** (including using the prescribed formats under Central Excise rules).
* The Range Inspector’s verbal advice may be premature or incorrect if the surrender acceptance is not complete.
* Once the registration is cancelled, you are free to issue invoices in your own format, as you would for a non-registered entity.

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### **Summary:**

| Issue | Status / Action |
| -------------------------------------------- | ----------------------------------------------------------------- |
| Surrender request submitted but not accepted | You are still a registered assessee and must comply fully. |
| Filing ER-3 returns | Required until formal acceptance of surrender. |
| Invoice format | Must follow excise invoice rules until registration is cancelled. |
| Delay in acceptance | Follow up formally with Commissioner’s office or file RTI. |

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### Suggested next steps:

1. Send a written follow-up to the Assistant Commissioner requesting formal acceptance and update of status on ACES.
2. Continue filing ER-3 returns until confirmation of surrender acceptance.
3. Maintain compliance with excise procedures and invoice formats until surrender is formally accepted.
4. If delay persists beyond reasonable time, consider RTI or escalate through higher authorities.

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If you want, I can help draft a follow-up letter or RTI application. Would you like that?

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