Central Excise Registration and Regulations

Central Excise Duty is a form of Indirect Taxation levied through the Central Excise Act, 1944. The Central Excise Duty is levied on Goods and Products, which are manufactured or produced in India. Excise duty is levied when the goods are manufactured or produced in India and is payable when the goods are removed from the manufacturing premises. Therefore, central excise registration and central excise duty are applicable to all manufacturers. In this article, we cover the basics of Central Excise Duty and Central Excise Registration in India.

Central Excise Applicability

Central Excise Law is levied on manufacturing or production of goods and those into manufacturing in India must pay the Central Excise duty. If a manufacturer meets the following conditions, then Central Excise Law is applicable: i) The good must be manufactured or produced, ii) the goods manufactured must be excisable (i.e. Central Excise Duty is applicable to the goods manufactured/produced) and iii) the manufacturing or production took place in India.

Manufacturing or Production under the Central Excise Law means when a new and identifiable good or product has emerged having a different name, character, or use. Therefore, it is important to remember that under the Central Excise Laws, repacking or production of agricultural products, assembling and selling of waste or by-product could be dutiable.

Central Excise Exemption

Central Excise Law applies to all manufacturers and producers. However, the following persons cannot register for Central Excise or pay Central Excise duty:

Persons manufacturing good or products that are fully exempt from central excise or have a 0% rate of excise duty by way of notification.
Small Scale Industry whose aggregate turnover in a financial year does not exceed Rs. One Crore and Fifty lakhs.
A person involved in wholesale trade of excisable goods or products.
A person using excisable good or products for any other purpose other than for processing or manufacturing of goods.
A person manufacturing excisable goods under the warehousing procedures of Customs Act, 1962.

Central Excise Registration

Any person or undertaking liable to pay Central Excise must obtain a Central Excise Registration. The Central Excise Registration number is a fifteen digit number in which the 1st ten digits are the PAN Number, the next two digits correspond with the applicant status, and the last three digits denote the number of premises. Each of the manufacturing premises requires a separate Central Excise Registration. Once a Central Excise Registration is completed, the registration is valid unless it is suspended, revoked or surrendered.

In case a manufacturer or producer liable to pay Central Excise does not obtain Central Excise Registration, a penalty of up to Rs.10,000 and/or imprisonment of up to 7 years can be imposed. Therefore, it is important for Entrepreneurs under the manufacturing or production process to know about their Central Excise liability and maintain compliance.

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Frequently Asked Questions

Common questions about Central Excise Registration and Duty Regulations in India.

Central Excise Duty is an indirect tax levied on goods manufactured or produced in India. It is payable when the goods are removed from the manufacturing premises, as per the Central Excise Act, 1944.

Any manufacturer or producer in India is liable to pay Central Excise Duty if the goods they manufacture or produce are excisable (i.e., Central Excise Duty is applicable to those goods) and are not exempt from the duty.

Central Excise Registration is mandatory for any person or undertaking liable to pay Central Excise Duty on the goods they manufacture or produce in India.

To obtain Central Excise Registration, the manufacturer or producer needs to apply for it by providing the required details and documents. The registration number is a 15-digit number, with the first 10 digits being the PAN number.

If a manufacturer or producer liable to pay Central Excise Duty fails to obtain Central Excise Registration, they can be penalized with a fine of up to Rs. 10,000 and/or imprisonment of up to 7 years.

Yes, there are exemptions from Central Excise Duty. Small Scale Industries with an aggregate turnover not exceeding Rs. 1.5 crore in a financial year and persons manufacturing fully exempt goods or goods with a 0% excise duty rate are exempt from Central Excise Duty.

No, each manufacturing premises requires a separate Central Excise Registration. The last three digits of the 15-digit registration number denote the number of premises.

Yes, Central Excise Registration can be revoked, suspended, or surrendered under certain circumstances as per the Central Excise Laws.

Under Central Excise Law, manufacturing or production is considered when a new and identifiable good or product emerges with a different name, character, or use. Activities like repacking, assembling, or selling waste or by-products can also be considered dutiable.

No, Central Excise Duty is not applicable to persons involved in the wholesale trade of excisable goods or products. The duty is levied on the manufacturing or production of goods in India.