E-Filing of Excise Returns

1. E-FILING OF EXCISE RETURNS
NAME:
PROF. VIKAS G. JAGTAP

3. PROCEDURE FOR E-FILING OF EXCISE RETURNS
 An excise or excise duty is the indirect tax, which is paid on the sale of a
particular good. The reason behind why they are called indirect tax because the
government does not apply the tax straight forward. There is an intermediary,
which is either the merchant or the producer who pays the tax to the
government.
 Prices for the goods, which the buyer pays to the merchant will then be
increased up to recover the tax. To complete the process, a manufacturer has to
file the excise duty return. As per a new approach, he can file the return online.
The process is termed as E-filing of Excise Tax Returns. In our country, the
government has made an automation of central excise and service tax (ACES).
It gives the producer an ease to pay their tax online.

4. EXCISE E FILING PROCEDURE

There are two simple steps via, which the assesses can file the
statutory returns of central excise online.
Two
simple
steps
Step 1: The
Registration
Process
Step 2: Online
Filing of the
Form

5. STEP 1: THE REGISTRATION PROCESS
 For filing your excise return electronically, the first and the foremost thing you have to do is to get registered
with ACES.
 ACES stands for automation of central excise and service tax. Central Board of Excise and Custom (CBEC) is
the central national agency, which is responsible for administering customs, central excise, service tax and
narcotics in India.
 When visiting the ACES website, you will find a central excise button on the top. If you are a new user, then
click this button and fill the form to get the user name and password. You will get the same on your email id.
When completing the registration process, you can login and fill the A-1, A-2, A-3, non assessee and non
declaration form.
 After that, you will get your registration approved by the commissioner when receiving a Registration Letter
(RC) just like any vehicle’s RC. The process takes at least 15 days of time and within the same period you will
receive it on your mail as well as on your mentioned address via post. There will be a 15-digit RC number in
which the first 10 digits are of your PAN card number, 11-12 digits will contain excise manufacture number
and the rest ones are system generated alphanumeric characters.

6. STEP 2: ONLINE FILING OF THE FORM
 Filling the excise returns form is pretty much easy when you complete your registration process
and approve it. You have to login your ACES account with the user name and password you were
provided with while performing step 1. Choose RET instead of REG, which you can see in the
main menu. All the details will be available on the form. You just have to fill it properly and
submit it. This will be your paid excise duty challan and you are done with your e-filing of excise
tax.

7. BENEFITS OF E FILING OF EXCISE
1. Physical interaction with department will be minimized.
2. No paperwork.
3. Saves time.
4. E-filing of excise returns.
5. E-filing of all documents like registration applications, online
returns and offline versions of ER1 to ER8.
6. E-filing of claims, permissions and intimations.
7. View, file and track status of your online filed documents.
8. Immediate E-acknowledgement of documents via unique
identification number.

8. FILING OF RETURNS AND OTHER DOCUMENTS THROUGH THE
ACES CERTIFIED FACILITATION CENTERS (CFCS)
 CBEC has entered into MOUs with the Institute of Chartered Accountants of India (ICAI), Institute of
Cost and Works Accountants of India (ICWAI) and the Institute of Company Secretaries of India (ICSI)
for setting up ACES Certified Facilitation Centers (CFCs) . Based on this, several CFCs have been set
up across India, details of which are available under the CFC link in ACES website
(http://aces.gov.in/CFC.jsp).
 These CFCs provide a host of services to the assessees such as digitization of paper documents like
returns etc. and uploading the same to ACES on payment of charges, upper limit of which has been
prescribed in the MOUs and available in the website, mentioned above.
 For this purpose, assessees are required to write to the department authorizing one of the CFCs, from
the approved list, to work in ACES on their behalf. They have to furnish the name and other details of
the CFCs, including the registration No issued by the ICAI/ICWAI etc.
 At any given time, one assessee can authorize one CFC, while one CFC can provide services to more
than one assessee throughout India. In case the assessee wants to withdraw the authorization, it can do
so by intimating the department. However, an assessee will be held liable for all actions of omission or
commission of the CFC, during the period they are authorized by him/her to work in ACES.

9. VALIDATION OF THE ENTRIES MADE WHILE FILLING
RETURN
 At the time of making entry in the electronic format of the relevant return, the
software does some preliminary validation for ensuring correctness of data, either
concurrently or at the time of saving / submitting the return.
 This validation process is automated. The user is prompted by the application
software to correct the particulars entered wherever required. In respect of certain
entries, although the application alerts the assessee about any entry found erroneous
or inconsistent, as per the automated validation process, the assessee is still allowed to
proceed further to complete data entry of the return and finally submit it
electronically.

10. ACKNOWLEDGEMENT OF E-FILING OF THE RETURN
 In the case of a Central Excise or Service Tax return filed on-line, ACES application
software acknowledges it by displaying an Acknowledgement message. A unique
document reference number is generated which consists of a 15-digit registration
number of the assessee, name of the return filed, the period for which return is filed
etc.
 This is also automatically communicated to the email id of the assessee by the
application. In the case of an uploaded Central Excise return, using offline utility,
similar acknowledgement is generated and sent after the acceptance of the return by
the system as a valid return i.e. when the status changes to “FILED”.

11. RESPONSIBILITY OF THE ASSESSEE
 It is the legal responsibility of the assessees, who are required to file returns, to file it within
the due date as prescribed under law. It may, however, be noted that merely uploading the
returns will not be considered as returns having been filed with the department.
 A return will be considered as filed, when the same is successfully accepted by the
application as “Filed” and the relevant date for determining the date of filing of return will be
the date of uploading of such successfully “filed” returns.
 In case a return is “rejected” by the application, the date of uploading of the rejected return
will not be considered as the date of filing, rather the date of uploading of the successfully
“filed”, return (after the assessee carries out necessary corrections and uploads it again) will
be considered as the actual date of filing.
 Responsibility of the Assessee 1. It is the legal responsibility of the assessees, who are
required to file returns, to file it within the due date as prescribed under law. It may, however,
be noted that merely uploading the returns will not be considered as returns having been filed
with the department.

12. DIGITAL SIGNATURES
 The ACES application is designed to accept digitally signed documents. However, in
the beginning this functionality is not going to be activated. Pending its activation the
electronic returns will be filed into ACES without digital signatures. Hence, wherever
the returns are submitted through ACES there will not be any requirement to submit
signed hard copy separately.

13. SYSTEM REQUIREMENTS FOR ACES TO USE ACES
FOLLOWING SYSTEMS REQUIREMENTS ARE RECOMMENDED
 Processor: Intel Pentium III and higher RAM: 256 MB and higher HDD: 80 GB and
more Web Browser: IE 6.0 and above, Netscape 6.2 and above MS Excel 2003 and
above for using offline utilities Sound Card, Speakers/Headphones, Colour Monitor
for using Learning Management Systems (LMS).

14. THANK YOU