Applicability of ER-5

CIRCULAR  926 / 16 / 2010  say assessee total duty paid of Rs.10 Lakh in last year both PLA and Cenvat Utilisation can file  trough  onlin only, this is efect from 01.06.10 onwards

Muthi 

Sir, We are manufacturing the goods which has exemption to file ER 6 under Notification No 39/2004 CE(NT) dt 25/ Nov 2004, (CH ID 36)

So, we applicable ER 5 &  ER6 as per the Notification No 20/2010 CE (NT), ?

CIRCULAR  926 / 16 / 2010

Payments through Cenvat Credit have been included in the criteria vide notification no. 41/2008-CE (NT), dated 29.09.2008.

Amendment vide Notification 21/2010 merely requires that the ER-5 & ER-6 returns should be filed electronically. (notification 20/2010 is relevant for ER-4).

However, the above amendment does not take away the exemption granted vide notification 39/2004-CE(NT). In short, even after the aforesaid amendment, a manufacturer is required to file these returns only if both the following conditions are satisfied:

a.      The unit should be engaged in manufacture of goods falling under any of the Chapters 22, 28, 29, 30, 32, 33, 34, 38, 39, 40, 48, 72, 73, 74, 76, 84, 85, 87, 90, and 94 or the goods falling under Heading Nos. 54.02, 54.03, 55.01, 55.02, 55.03 and 55.04; and

b.     The unit should have paid duty Rs. One crore and above in the preceding financial year (through P.L.A. + Cenvat Credit accounts)

Dear Sir,

Kindly clarify the following doubt.

Suppose an unit started newly, required to file ER-5 & ER-6 if it will be paid Rs.1 Crore or above in the year of commencement of business?

If suppose what will be the consquences will be met by that company if failed to file ER5 & 6?

Regards,

S.Jegadeesan