Central Excise - Who need not file Electronic ER-4 RETURN? - CBEC Clarifies
IN DDT 1379-14.06.2010, we raised this question,
As per Rule 12 (2) of the Central Excise Rules, every assessee shall submit to the Superintendent of Central Excise, an Annual Financial Information Statement for the preceding financial year to which the statement relates in the form specified by notification by the Board by 30th day of November of the succeeding year. [Board has by Notification No. 36/2004 prescribed the Form ER-4]
Provided that where an assessee has paid total duty of rupees ten lakh or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year, he shall file the said Annual Financial Information Statement electronically:
The Central Government may, by notification, and subject to such conditions or limitations as may be specified in such notification, specify assessee or class of assessees who may not require to submit such an Annual Financial Information Statement.
Assessees who have paid a duty of less than Rs. 1 crore through PLA (Account current) during any financial year were not required to file this return, as per Notification 17/2006 CE NT Dated 01.08.2006 (Earlier 35/2004 CE NT).
This condition has been amended vide Notification 42/2008 CE NT Dated 29.09.2008 whereby, those who have paid a duty of less than Rs. 1 Crore, irrespective of the mode of payment (PLA or utilization of CENVAT credit) alone are entitled for exemption. In other words, those who have paid a duty of over Rs. 1 crore, either by way of PLA (Account current) or by way of utilization of CENVAT credit or both, shall file this return.
By Notification No. 20/2010-CX.,(N.T.), Dated: May 18, 2010, a proviso was added to Rule 12,
“Provided that where an assessee has paid total duty of rupees ten lakh or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year, he shall file the said Annual Financial Information Statement electronically:”
So, now the situation is
If you have paid more than Rs. 10 Lakhs duty, you are required to file ER-4 electronically.
If your duty payment is less than one Crore Rupees, you are not required to file the ER-4 return at all.
When you are not required to file the return at all, where is the question of filing them electronically?
Will the CBEC clarify? And what about ER-5 and ER-6?
Now CBEC has clarified that, “The exemption provided under Notification.17/2006-Central Excise (NT) dated 01.08.2006 and Notification No. 39i2004-Central Excise (NT), dated 25.11.2004, as amended, is available to interalia assessee who paid duty of excise less than Rs.1crore including the amount paid by utilization of CENVAT credit. It is, therefore, clarified that the assessees or class of assessees who are not required to file the ER-4, ER-5 & ER-6 returns because of the above exemption, are not required to file such returns electronically even if the duty paid by them including the amount paid by utilization of CENVAT credit in the preceding financial year exceeds Rs.10l acs.”
CBEC Letter in F. No. 209/03/11-CX-6 Dated: February 15, 2011