CENTRAL 

  EXCISE    MANUAL
Chapter-2

Part-I

REGISTRATION AND E.C.C. NUMBER

1. Introduction

1.1 For the administration of the Central Excise Act, 1944 and the Central Excise (No.2)
Rules, 2001 (hereinafter referred to as the ‘said Rules’) manufacturers’ of excisable goods or
any person who deals with excisable goods, with some exceptions, are required to get the
premises registered with the Central Excise Department before commencing business.

2. Persons requiring registration

2.1 In accordance with Rule 9 of the said Rules and Notifications issued under rules 18 and 19
of the said Rules, as the case may be, the following category of persons are required to
register with jurisdictional Central Excise Officer in the Range office having jurisdiction over
his place of business/factory:

Every manufacturer of excisable goods (including Central/State Government undertakings or

undertakings owned or controlled by autonomous corporations) on which excise duty is
leviable .

Persons who desire to issue CENVATABLE invoices under the provisions of the CENVAT Credit
Rules, 2001.

Persons holding private warehouses.

Persons who obtain excisable goods for availing end-use based exemption notification.

Exporters manufacturing or processing export goods by using duty paid inputs and intending
to claim rebate of such duty or by using inputs received without payment of duty and
exporting the finished export goods.

2.2 Separate registration is required in respect of separate premises except in cases where
two or more premises are actually part of the same factory (where processes are interlinked),
but are segregated by public road, canal or railway-line. The fact that the two premises are
part of the same factory will be decided by the Commissioner of Central Excise based on
factors, such as:
Interlinked process – product manufactured/produced in one premise are substantially used
in other premises for manufacture of final products.

Large number of raw materials are common and received/proposed to be received commonly
for both/all the premises

Common electricity supplies.

There is common labour /work force

Common administration/ works management.

Common sales tax registration and assessment

Common Income Tax assessment

Any other factor as may be indicative of inter-linkage of the manufacturing processes.

This is neither an exhaustive list of indicators nor each indicator is necessarily in each case.
The Commissioner has to decide the issued from case to case.

2.3 Separate Registration is required for each depot, godown etc. in respect of persons
issuing Cenvat invoices. However, in the case liquid and gaseous products, availability of
godown should not be insisted upon.

2.4 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.

3. Exemption from Registration

3.1 The Central Board of Excise and Customs (CBEC), by Notification No. 36/2001-CE (NT)
dt.26.6.2001, has exempted specified categories of persons/premises from obtaining
registration, as follows:

Persons who manufacture the excisable goods, which are chargeable to nil rate of excise duty
or are fully exempt from duty by a notification.

Small scale units availing the slab exemption based on value of clearances under a
notification. However, such units will be required to give a declaration (Annexure-1)once the
value of their clearances touches Rs.90 lakhs.

In respect of ready-made garments, the job-worker need not get registered if the principal
manufacturer undertakes to discharge the duty liability.
Persons manufacturing excisable goods by following the warehousing procedure under the
Customs Act, 1962 subject to the following conditions:

(a) the said excisable goods and any intermediary or by-product 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;

(b) the manufacturer shall file a declaration in the specified form annexed hereto in triplicate
for claiming exemption under this notification;

(c) 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.

The person who carries on wholesale trade or deals in excisable goods (except first and
second stage dealer, as defined in Cenvat Credit Rules, 2001).

A Hundred per cent Export Oriented Undertaking, or a unit in Free Trade Zone or Special
Economic Zone licensed or appointed, as the case may be, under the provisions of the
Customs Act, 1962.

Persons who use excisable goods for any purpose other than for processing or manufacture of
goods availing benefit of concessional duty exemption notification.

3.2 The Drugs and Cosmetics Rule 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
under-taken to comply with the procedural formalities will have to maintain separate accounts
in respect of goods manufactured on his own account and goods manufactured on behalf of
the loan licensee. However, the principal manufacturer has to aggregate the clearances made
by him together with clearances made on behalf of the loan licensees with regard to eligibility
as well as exemption limit. In other words the clearances made on behalf of the loan licensee
have to be clubbed with that of the principal manufacturer (by the manufacturer from one or
more factories and from the factory by one or more manufacturers).

4. Application for Registration

4.1 Under authority of Section 6 of the Central Excise Act, 1944 read with rule 9 of the said
Rules, the CBEC has prescribed the format for Application as well as Registration Certificate.
The application has to be made to the jurisdictional Central Excise Officer.

4.2 The application for registration should be signed by:

The applicant or by his authorised agent having general power of attorney. The Range Officer
shall have power to call the original documents to verify ‘power of attorney’. Such document
shall not be retained by the Range Officer but be returned immediately after verification.

In case of unregistered partnership firms, by all partners.

In case of registered partnerships, by the managing partner or other partner so authorised in

the Partnership Deed.

4.3 When a manufacturer who is exempt from the registration is required to file a declaration,
the same will be filed with the Assistant Commissioner of the jurisdictional Central Excise
Division.

5. Fling of Declaration in lieu of registration

5.1 The manufacturers who are exempted from the operation of Rule 9 by virtue of
Notification no. 36/2001-Central Excise (NT) dt.26/6/2001 have to file a declaration with the
Assistant Commissioner of the respective Divisions. Such declarations received from the
assessee will have to be filed separately, tariff head-wise in the Divisional office. The details
should be entered in the register to be maintained in the Divisional office in the enclosed
proforma. Genuine delay in filing the required declaration need not be viewed seriously and
the assessee may be allowed to enjoy the exemption from the operation of Rule 9 as well as
from the payment of duty provided the conditions stipulated in the respective exemption
Notifications have been duly fulfilled.

6. Procedure of Issue of Registration Certificate

6.1 Under the section 6 of the Central Excise Act, 1944 read with rule 9 of the said Rules, the
CBEC, by notification, has specified the format for Application as well as Registration
Certificate (Annexure 2 and 3, respectively). The format of application is common to
manufacturers, private warehouse holders, and registered dealers issuing CENVATABLE
invoice and persons who obtain goods by availing end-use based exemptions, including
manufacturers or processors of export goods.

6.2 In the application for Registration, the applicant has to submit ground plan. Under the
Central Excise (No.2) Rules, 2001, there is no stipulation of any specified marked area for
storing the finished goods (traditionally called the ‘bonded store room’). Thus there is no need
for marking such area in the ground plan. The only verification that the jurisdictional officers
should conduct that the premises mentioned in the application for registration, are genuine
and are intended for the purposes for which the application has been made. Assessee,
however, shall be responsible for proper storage and accountal of goods manufactured in his
factory at any point of time.

6.3 The verification shall be made by the Inspector or Superintendent of Central Excise
having jurisdiction over the premises (Range Officer) in respect of which the applicant has
sought registration, within 5 working days of the receipt of application. As per the
rules/notification, the registration certificate shall be issued within 7 working days. The Range
Officer (Superintendent) either himself or through the Sector Officer (Inspector) shall verify
whether the declared address and operations (intended) are genuine and the declarations
made in the application are correct. If found in order, he will endorse the correctness of the
same and append his dated signature on the office copies of the Registration application and
the copy of the application with the registrant. If any deviations or variations are noticed
during the verification, the same should be got corrected. Any major discrepancy, such as
fake address, non-existence of any factory etc. shall be reported in writing to the Divisional
Officer within 3 working days and the Range Officer shall initiate action to safeguard revenue.

7. Issue of Registration Certificate.

7.1 All Registrations of each type should be numbered in a single series for the Range as a
whole , commencing with serial no. 1 for each calendar year . The issuing authority should
make every effort to complete all formalities and grant the Registration Certificate within 7
days of receipt of application in his office. Every Registration Certificate granted / issued by
the registering authority shall be under his signature. He should also countersign the ground
plan accompanying the Registration Certificate. The Registration Certificate and the duplicate
copy of the plan should be returned to the registered person who shall exhibit his Registration
Certificate or a certified copy thereof in a conspicuous part of the registered premises. The
Registering authority in a permanent file shall keep the application as well as the ground plan.

7.2 In case of partnership firms, the Registration Certificate which is granted in the name of
the said firm [which is registered or not under the Partnership Act] shall contain the names of
all the partners.

7.3 The Registration Certificate or a certified copy thereof is required to be exhibited in a

conspicuous part of the registered premises.

8. Period of Validity of Registration

8.1 Once Registration Certificate is granted, it has a permanent status unless it is suspended
or revoked by the appropriate authority in accordance with law or is surrendered by the
person or company concerned. If the person who applies for Registration with the department
is an individual, then the Certificate would cease to be valid in the event of the death of the
said individual. Any other person(s) who wish(es) to continue with the operations for which
the deceased person was registered, he would then have to apply afresh. (See notification no.
35/2001-Central Excise (N.T.) dated 26th June, 2001.).

8.2 In the case of limited company, death of a director would not affect the status of
Registration, since Registration is issued to the body corporate recognizing the same as a
legal person. In the case of partnership firms also normally no difficulty would arise with
regard to succession, since the surviving partners will continue either in the same name or
with the change of name the business. However, in the case of proprietary business when the
proprietor dies, the successor in estate has to apply for a fresh Registration. Ordinarily fresh
Registration would be issued to the person who happens to be in the actual possession of the
business. However, grant of fresh Registration to the successor in estate shall not be
regarded that the Government has accepted the said person as the legal successor/heir to the
deceased.

9. Surrender, Cancellation, Suspension or Revocation of Registration

9.1 Registration Certificate may be surrendered as per application in prescribed form in

Notification No. 35/2001-CE (N.T.) dated 26.6.2001 [Annexure-4]. This is subject to
compliance of the statutory obligations under the excise law, particularly the payment of all
dues to the Government including the duty on finished excisable goods lying in the
factory/warehouse. In case of mis-declaration regarding compliance, the surrender of
registration shall not be valid.

9.2 Registration Certificate may be cancelled by the Registering authority when the registered
person voluntarily surrenders the Certificate due to closure of business.

9.3 As per rule 17 of the said Rules Registration Certificate may be revoked or suspended by
the Deputy/Assistant Commissioner of Central Excise, if the holder or any person under his
employ has committed a breach of any condition of the Central Excises Act or the rules made
thereunder or has been convicted of an offence under Section 161 read with Section 109 or
Section 116 of the Indian Penal Code [45 of 1860].

9.4 Suspension or revocation of the Registration is a heavy punishment since it amounts to

suspending or stopping the business and could result in grave damage to the person
concerned. Hence this penalty should be resorted to only in cases where there is persistent
misdemeanor involving serious loss of revenue.

10.4 Though technically, a Registration Certificate can be suspended or revoked by the

issuing authority, the power to revoke or suspend the Registration is vested only with the
Deputy/Assistant Commissioner. In case of suspension or revocation, the Range Officer
should refer the matter to the Deputy/Assistant commissioner who will pass appropriate
orders after affording a reasonable opportunity. Appeal against this order lies with the
Commissioner[Appeals] and this should be specifically spelt out in the order -in-original of the
Deputy/Assistant Commissioner(Preamble).

10. Lost Registration Certificates

10.1 When a Registration Certificate is reported to be lost, the registered person shall submit
a written application to the Range Officer for issuing a DUPLICATE REGISTRATION
CERTIFICATE. The same shall be issued after making necessary entries in the record or logs
in the computer data.

An importer who intends to issue invoice under Cenvat Credit Rules, 2001, will have to
Register himself in the manner specified earlier.

 
 

Part-II

NEW EXCISE CONTROL CODE [E.C.C. Number]

1. Introduction

1.1 The Central Excise assessees and registered dealers have to obtain New Excise Control
Code Number [New ECC Number]. The Board had issued Circular No.493/59/99-CX 12th
November, 1999 wherein the components of New ECC Number has been explained and the
procedure to obtain the same has been specified. This Number is based on the principles of
‘Common Business Identifier’ and will ultimately replace the existing registration number.
New ECC Number shall be used for revenue accounting, validation of documents (e.g.
CENVAT invoices), inter-agency coordination and for creation of data warehouse. Hence, all
persons requiring registration must obtain the New ECC Number. Currently, he said Number
has to be quoted on the TR-6 Challans covering deposit of Central Excise duties, Additional
duties, Cess and other dues to the Government.

2. Components of New ECC Number

2.1 The new ECC number is alphanumeric. The first part is the 10-Character PAN issued by
Income-tax authorities to the concerned person to whom the New ECC Number is to be
allotted. The second part comprises of a fixed 2-Character alpha-code, which is as follows:

Category Code

(1) Central Excise manufacturers XM

(Including registered warehouses)

(2) Registered Dealers XD

2.2 This is followed by 3-Character numeric-code – 001, 002, 003.....etc. In case, a

manufacturer, registered with the Central Excise Department, has only one factory /dealer’s
premise/warehouse, the last three characters will be "001". If there are more than one
factories/warehouses/dealer’s premises of such a person having common PAN for all such
factories/warehouses/dealer’s premises, the last 3 character of the new ECC would be "001,
002, 003.... etc.

Examples:
(1) Where the concerned person has only one factory:

New ECC Number will be - PAN + XM + 001

Suppose PAN is ABCDE1234H, the New ECC Number will be -

ABCDE1234H XM 001

(2) Where the concerned person has more than one factories, say 3 factories, having PAN as
aforesaid, then the New ECC Number will be:

ABCDE1234H XM 001

ABCDE1234H XM 002

ABCDE1234H XM 003

(3) Where the concerned person has one factory and is also registered as dealer, having PAN
as aforesaid, then the New ECC Number will be:

ABCDE1234H XM 001 (for Factory)

ABCDE1234H XD 001 (for Dealer)

2.3 Since each factory have to apply for allotment of New ECC Number, a centralised
allotment is done at the level of Division (where all the factories fall within the jurisdiction of
the same Division) or at the level of Commissionerate (where all the factories fall within the
jurisdiction of the same Commissionerate) or at the level of Director General of Inspection,
Customs & Central Excise, New Delhi (where the factories fall within the jurisdiction of
different Commissionerates). The same principle is applied to the allotment of New ECC
Number to Dealers.

3. Procedure for allotment of New ECC

3.1 Every person registered with Central Excise is required to obtain the New ECC Number.
For obtaining the same the following procedure will be followed:

Application will be made in the prescribed form (in duplicate) given in Annexure-5 along with
a certified copy of PAN (letter/card issued by the Income Tax Department), to the
Jurisdictional Range Superintendent of Central Excise.

A dated acknowledgement of the application will be given immediately by the Range Office.
An entry will be made in a register (serially numbered) indicating name of the concerned
person, address, Range and the existing ECC Number and date of forwarding of application,
New ECC Number (to be filled when allotted). The Entry Number (Receipt Number) have to be
endorsed on the Acknowledgement Slip.

All applications are to be forwarded to Divisional Office. Where the applications are complete
in all respects and there is only one factory of the PAN-holder or more than one factory within
the jurisdiction of the said Division, New ECC Number is to be allotted within 3 working days
and the letter has to be issued by the Deputy/Assistant Commissioner to the concerned
persons (applicants) in the form given in Annexure-6. One copy of the letter has to be
forwarded to the concerned Pay & Accounts Officer (PAO).

Where there are more than one factories of the PAN-holder falling outside the jurisdiction of a
Division, all such applications are to be forwarded to the Commissionerate Headquarters
within 3 working days of the receipt of the application from the Range Office.

A Cell constituted in the Headquarters processes the application. Where all the factories fall
within the jurisdiction of the Commissionerate, the New ECC Number is to be issued by the
Commissionerate and is to be intimated to the concerned persons (applicants) individually in
the format given in Annexure-III and a copy is forwarded to the concerned PAO.

Where the factories of the PAN-holder fall in the jurisdiction of different Commissionerates,
the applications are to be sent by the Commissioner to the Director General of Inspection,
New Delhi within 3 working days of the receipt from the Division Office. DGI has also
constituted a Special Cell to process such applications. The New ECC Number is to be allotted
by DGI and intimated to the concerned persons in the format given in Annexure-4. A copy of
these letters will also be forwarded to the concerned PAO.

In the said application, the Location Code is to be filled in by the Range Office. After re-
organisation of Commissionerates, the Directorate of Statistics & Intelligence has allocated
revised location six digits Codes to all Range Offices.

3.2 It shall be compulsory for all the Central Excise assessees and dealers registered under
the Central Excise Rules, 1944 to obtain PAN whether or not they pay Income-tax. The
Income Tax Department has already been requested to allot PAN on priority basis to all
Central Excise assessees and Registered Dealers.