LTU procedure
Board has issued another set of instructions on the procedure to be followed in the LTUs.
1. Receipt of Consent Form and its Acceptance: On receipt of the consent form from the large taxpayer, the Chief Commissioner, LTU will get the said consent form verified, and if the eligibility conditions prescribed under the rule and the notification have been satisfied, the taxpayer will be informed by way of issue of an acceptance letter. The process of acceptance would not normally take more than 7 days. Once a taxpayer acquires the status of LTU, the entire jurisdiction of central excise, service tax and income tax matters shall stand transferred to the said LTU in respect of all his manufacturing units, service providing premises, and other registered premises located throughout the country.
2. Client Executive: The Chief Commissioner, LTU will assign a Client Executive for each large taxpayer from among the Additional/Joint/Deputy/Asstt. Commissioner posted in the LTU either from the Income Tax or Central Excise Department. The said Client Executive will be the single point interface with the large taxpayer for any assistance, clarification, and grievance redressal.
3. Transfer of intermediate goods/inputs/capital goods: The goods can be removed by the sender premises under an invoice or a transfer challan, which should contain all details as in case of an invoice except the value. However, the facility of such removal without payment of duty or reversal of credit is not permitted when the recipient unit is availing the benefit under specified area based exemption notification or where the sender premises is an EOU or a unit located in EHTP or STP.
4. Transfer of credit: Rule 12A(4) of the Cenvat Credit Rules, 2004 provides an option to a large taxpayer to transfer Cenvat credit (of central excise duty or service tax) accumulated in one manufacturing unit or service providing unit to any of its other manufacturing or service providing units. Such transfer can be made by way of issue of a transfer challan containing the details as provided in the said sub-rule. The said transfer challan can be sent by fax or electronically by way of e-mail attaching the scanned copy of the challan to other unit for taking credit which should be followed by the original copy of the challan.
5. Excess payment: Rule 12 BB of the Central Excise Rules, 2002 provides a facility that if a large taxpayer manufacturing excisable goods has paid at any time excess excise duty on account of arithmetical error, he would be permitted to adjust the said excess duty paid by him in the subsequent period.
6. E payment: In case of difficulties in e-payment, a large taxpayer is permitted to pay the duty (except in such cases of Service Tax where e-payment is mandatory) in the respective jurisdiction where the factories or service providing premises are situated or even in the jurisdiction of LTU, Bangalore.
7. Pending rebate/refund cases: All the refund/rebate claims filed with the jurisdictional Central Excise and Service tax Commissionerate till the date of receiving the acceptance letter issued by the Chief Commissioner, LTU shall be processed by the jurisdictional Commissionerate only, and these will not be transferred to the LTU.
8. Export Procedures: facility of self-sealing of export consignment is available to all the large taxpayers. Therefore, all the taxpayers are expected to avail this facility. However, in exceptional cases, where the taxpayer intends to avail the facility of sealing by the Central Excise officers or the Customs officers, they should apply for the same to the LTU who in turn will request the jurisdictional Commissionerate to depute the staff for supervising the sealing of export cargo. However, the processing of accepting the proof of export shall be carried out only in the office of the LTU.
9. ER-1 return:-A new form is to be prescribed.
10.Audit: As far as possible, the audit of the head office and all the units will be conducted simultaneously. Dates for audit will be fixed in consultation with the large taxpayer.
11.Adjudication: All show cause notices pending adjudication, as on the date of issue of acceptance letter will be transferred to the LTU along with all connected case papers. Cases that are in the process of being adjudicated (i.e. where personal hearings have been conducted) will be decided by the jurisdictional adjudicating authority only.
12.Investigations: All pending investigation cases as on the date of issue of acceptance letter will be completed by the jurisdictional Commissioner.
13.Arrears of revenue :- The complete details of the arrears of revenue will be forwarded to the LTU by the respective Commissionerates. The case files are not to be merely forwarded, but individual details of each case along with the full history should be prepared and sent. Similarly, all cases pending before the Commissioner (Appeals), CESTAT, High Court, and Supreme Court should be transferred to the LTU with a self-contained note in each file.
CIRCULAR NO., Dated: October 5, 2006