Block Transfer of Bond Account
In case of Merchant Exporters, they can execute B.1 general bond with a particular Maritime Commissioner. However, the goods may have to be exported from Port/Airport/Post Office under the jurisdiction of another Maritime Commissioner.
In such cases, Merchant Exporter has to obtain "Block Transfer of Credit in Running Bond Account" in favor of Maritime Commissioner having jurisdiction over the Port/Airport/Post Office from which the goods are being exported.
Intimation of such Block Transfer will also be given by Maritime Commissioner to Superintendent of Central Excise having jurisdiction over the factory/warehouse. Similarly, if the goods are to be exported from the Port/Airport/Post Office which is not under the jurisdiction of any Maritime Commissioner, the Merchant Exporter will have to obtain "Block Transfer of Credit" in "Running Bond Account" in favor of the Assistant/Deputy Commissioner having jurisdiction over the factory of manufacturer.
Once the Block Transfer Credit is made, it will be treated as if Merchant Exporter has executed bond for that amount. Proof of export will have to be submitted to the authority (i.e. Maritime Commissioner/Assistant Commissioner) in whose favor the "Block Transfer Credit" has been made and they will keep control over the bond monitoring proof of export. However, if the goods are not actually exported, action for recovery will have to be initiated by the Maritime Commissioner of Central Excise before whom bond has been executed.
Small Scale Exemption Scheme
The contribution of Small Scale Sector in the industrial growth of the Indian economy and to the Gross Domestic Product is significant besides the potential for employment generation. The Small Scale Sector has for itself a special dispensation in the Central Excise law in order to make it competitive in the domestic and global market. Central Excise duty concessions have been extended to the units in the small-scale sector based on their turnover so as to facilitate them to graduate by availing these concessions in a graded manner.
Manufacturers of specified commodities having clearances not exceeding Rs. 3 crores in the preceding Financial Year are eligible for this exemption.
Registration of Small Scale Companies
Every manufacturer of excisable goods is required (under Rule 174 of Central Excise Rule 1944) to get registered with the Central Excise Department before starting production.
The SSI must file for registration when their turn over crosses Rs. 1 Crore only. The application for the registration should be submitted to the jurisdictional Range Superintendent of Central Excise.
The Registration Certificate will be automatically granted. If it is not granted within 30 days of the receipt of the application it is deemed to have been granted.
There is no fee for registration and a factory or a unit is to be registered once only. There is no need for renewal of the registration.
The registration is applicable only for the premises where the manufacture is taking place.
A separate registration is required for each premise.
Case a new product is to be manufactured, the registration certification should be got endorsed for the additional items.
Exemption from registration
The requirement of registration has been exempted for the following persons. (Notification No. 22/98 CE(NT) dated 4.6.98 as amended)
Manufacturers who are only manufacturing goods, which are exempted from payment of duty of Central Excise.
For small scale industries who are manufacturing goods up to an aggregate value of less than Rs. 90 lakhs. After crossing Rs. 90 lakhs turn over the SSI must file declaration.
In case an SSI is manufacturing goods of more than 30 lakhs he must file a declaration only once. (the form is enclosed).