Applicability of Central Excise

Dear sirs,

One of our client, an SSI unit , manufacturing detergent items, washing soap, phinoil etc. are approched me with regard to the applicability of central excise to them. During the year 2010-11 they had 1.6 crores turnover. But they were not aware about the Central excise that time. Now they approched me with regard to what to do in this case. my doubts:

1. Whether they are liable to take registration if they are producing exempted goods. Whether detergent items are exempted goods

2. What are the legal consequences and penalties if any they have to face with regard to not taking registration and non payment of duties duing the year 2010-11

3. What are the procedure for registration and filing of returns under central Excise

4. they are doing some job work with regard to repacking of  goods of some other company of exempted goods. Wether it also covered under turnover under central excise .

please guide me in this case

Replies (1)
Originally posted by : joji jose


Dear sirs,

One of our client, an SSI unit , manufacturing detergent items, washing soap, phinoil etc. are approched me with regard to the applicability of central excise to them. During the year 2010-11 they had 1.6 crores turnover. But they were not aware about the Central excise that time. Now they approched me with regard to what to do in this case. my doubts:

1. Whether they are liable to take registration if they are producing exempted goods. Whether detergent items are exempted goods

- Detergent items are broad catagory, unless you mention Tariff Sub Heading, its tough to say that what is exempted and what is not.

- He had to take registration when he crossed 1.4 cr.

2. What are the legal consequences and penalties if any they have to face with regard to not taking registration and non payment of duties duing the year 2010-11

- Get registered, pay duties which are standing liability in past years with interest, and file return. non compliance will be treated as evasion and then 100% penalty may get imposed.

3. What are the procedure for registration and filing of returns under central Excise

- visit www.aces.gov.in

4. they are doing some job work with regard to repacking of  goods of some other company of exempted goods. Wether it also covered under turnover under central excise .

- if such job work is supported with excise procedure, and the principal manufacturer is liable for duty payment, then exempted, in absence of such procedure the job worker is liable for payment of duty.


please guide me in this case

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