Circular No. 708 /24/2003-CX
23^rd April, 2003.

F.No.209 /12/2003-CX-6

Government of India

Ministry of Finance & Company Affairs

Department of Revenue

Central Board of Excise & Customs

Subject:-         New Central Excise Registration Procedure for Powerloom Weavers/

Hand Processors/ Dealers of Yarns and Fabrics/ Manufacturers of Ready Made Garments – regarding.

I am directed to say that following the recent measures like withdrawal of deemed credit and removal of SSI exemptions on textiles and textile articles, a large number of Powerloom Weavers/ Hand Processors/ Dealers of Yarns and Fabrics/ Manufacturers of Ready Made Garments are now required to be registered with Central Excise.  In this connection, trade has brought to the notice of the Board the harassment on account of the complexities in the Registration process with Central Excise.  Accordingly, Board has reviewed the entire process of Registration with a view to resolve the reported difficulties and provide a simple, transparent and hassle free Registration process.

2.         In this regard, your attention is invited to Part-B of Board’s Circular No.703/19/2003-CX dated 25^th March, 2003 in which it has been instructed that considering the fact that the new registrants may not be familiar with the excise procedures, the Commissioners may coordinate with trade Associations to facilitate the Registration process. Further, to reduce interaction with the department, it has been provided that applications for Registration of the members can be collected by the Associations and handed over at the Commissionerate headquarters where the Registration would be issued by a special cell constituted for the purpose. Board has also considered the difficulties of the trade on account of likely delay in grant of Registration following large number of applicants/registrants and has advised the field formations that penal action on account of clearances of the specified readymade garment units for home consumption on payment of duty pending grant of registration may not be initiated for the time being (refer Board’s Circular 705/21/2003-CX dated 8^th April, 2003). 

3.         As a further measure of trade facilitation, Board has introduced a simpler application Form exclusively for Registration of Powerloom Weavers/ Hand Processors/ Dealers of Yarns and Fabrics/ Manufacturers of Ready Made Garments who are now required to pay duty or follow Central Excise procedures on account of changes in the Finance Bill, 2003-04.  The new Form has been notified vide notification No. 38/2003-CE(NT) dated 22^nd April, 2003 (copy enclosed).  It may be seen that in comparison to the existing Registration application Form, this format seeks information of paramount importance only from the registrant. It is expected that this new simple Form shall address the concerns of the trade and meet the requirements of the department. It is also clarified that the Registration Form-IA, as notified now, shall be used for the new registrants in the textile and textile articles sector only.  Those who are already registered, need not apply afresh. Though the present instructions require the submission of the application Form and grant of Registration in the Central Excise Division Office, the stipulation that the Registration Form may be handed over by the trade and industry Associations in the Commissionerate headquarters where these shall be processed by a special cell shall continue as an option.  Further, the normal procedure of grant of PAN-based Registration is not to be strictly adhered to while granting Registration to the new registrants in textiles and textile articles sector.  In other words, Registration should be given in the absence of PAN, if not available.  Finally, the verification of the premises need not be conducted at this juncture for grant of Registration.

4.         It may be appreciated that the purpose is to allow the textile sector to carry on their activities with minimum interference from the department as they have been doing all along.  All officers must be instructed to extend maximum help to trade in grant of Registration and to educate the members of the trade in respect of the new Central Excise procedures. Wide publicity may be given to the new Registration procedure. Field formations may also be instructed suitably.

5.         Receipt of the same may be acknowledged.

6.         Hindi version will follow.

                                                  Vijay Mohan Jain

                                                  Under Secretary to the Govt. of India