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Unit 2: Central Excise Duty

5. Common administration/work management. Common sales tax registration and Notes
assessment. Common Income Tax assessment.
6. Any other factor as may be indicative of inter-linkage of the manufacturing processes.

7. This is not an exhaustive list of indicators nor is each indicator necessary in each case. The
Commissioner has to decide the issue case by case.
Separate Registration is required for each depot, godown etc. However, in the case of liquid and
gaseous products, availability of godown before grant of registration should not be insisted
upon.
Registration Certificate may be granted to minors provided they have legal guardians, i.e.
natural guardians or guardians appointed by the Court, as the case may be, to conduct business
on their behalf.

Exemption from Registration: The Central Board of Excise and Customs (CBEC), by Notification
No.36/2001-CE (NT) dated 26.6.2001 as amended has exempted specified categories of persons /
premises from obtaining registration. The exemption applies to the following:

a. Person who manufacture the excisable goods, which are chargeable to nil rate of excise
duty or are fully exempt from duty by a notification.
b. SSI manufacturers having annual turnover below the specified exemption limit. However,
such units will be required to give a declaration once the value of their clearances reaches
the specified limit which is 40 lakhs presently.
c. In respect of ready-made garments, the job-worker need not get registered if the principal
manufacturer undertakes to discharge the duty liability.
d. Persons manufacturing excisable goods by following the warehousing procedure under
the Customs Act, 1962 subject to the following conditions: -

i. The said excisable goods and any intermediary or by-products including the waste
and refuse arising during the process of manufacture of the said goods under the
Customs Bond are either destroyed or exported out of the country to the satisfaction
of the Assistant Commissioner of Customs or the Deputy Commissioner of Customs,
in-charge of the Customs Bonded Warehouse;
ii. The manufacturer shall file a declaration in the specified form annexed in triplicate
for claiming exemption under this notification;
iii. No drawback or rebate of duty of excise paid on the raw materials or components
used in the manufacture of the said goods, shall be admissible;
iv. The person who carries on wholesale trade or deals in excisable goods (except first
and second stage dealer, as defined in Cenvat Credit Rules, 2002 and the depots of a
registered manufacturer);
v. A Hundred per cent Export Oriented Undertaking, licensed or appointed, as the case
may be, under the provisions of the Customs Act, 1962 other than having dealings
with DTA;
vi. Persons who use excisable goods for any purpose other than for processing or
manufacture of goods availing benefit of concessional duty exemption notification.
The Drugs and Cosmetics Rules, 1945 recognises the concept of loan licence in the manufacture
of P or P medicines. As a result, the system of accepting the said concept is still prevalent under
excise law. In such cases the procedure prescribed under Notification No.36/2001-CE(NT) dated
26/6/2001 has to be followed. The principal manufacturer who has`undertaken to comply with
the procedural formalities will have to maintain separate accounts in respect of goods

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