File Returns even if no duty is payable
YET another issue raised in the recent Hyderabad RAC meeting:
An SSI unit is eligible for exemption up to Rs.150 lakhs for one financial year. If he crosses Rs.150 lakhs during a financial year, he takes registration and starts paying duty thereafter. However, his total turnover for that financial year does not exceed Rs. 4 crores. Therefore, for the subsequent year also he is eligible for exemption of first Rs.150 lakh clearances. In such a case, from April next year onwards, he claims exemption and since he is claiming exemption, he should not be required to file any monthly or quarterly return. But since he had taken registration during tile previous year, department is insisting that he should file ‘Nil' return even though he is not paying duty. Industry requests that he should be exempt from filing returns during the period of exemption, and department should not insist on filing of 'Nil' return.
The Department answered:
In terms of the provision of Rule 12 of the Central Excise Rules, 2002, the assessee eligible to avail exemption under a Notification, based on the value of the clearances in a financial year, shall file quarterly returns in the form specified, furnishing details of production and removal of goods and other relevant particulars within ten days from the close of the quarter to which the return relates. Hence, as long as he is registered and claiming exemption under SSI Notification, he has to file the returns quarterly.
Can he get his registration cancelled?