2 |
It has also been
further decided to replace the existing Registration Numbers (given by
Range Offices at the time of registration), Personal Ledger Account
Numbers (given by Chief Accounts Officers of the Commissionerate) and
Excise Control Code Numbers (allotted by Pay and Accounts Officer) by New
PAN-based 15 digit Registration Number [which will be identical to
PAN-based 15 digit New Excise Control Numbers being allotted since 1999]
with effect from 1st December, 2001. In other words, the assessees/persons
already possessing PAN-based 15 digit New ECC Number will use this number
as 'Registration Number'. Others, who do not possess New ECC Number, shall
immediately apply in the manner specified in Circular No.493/59/99-CX
dated 12th November, 1999 [The procedure is also specified Part II of
Chapter 2 of the Central Excise Manual, First Edition]. |
3 |
For this
purpose, the Board has chalked out the strategy for manage the changes to
ensure that there is no disruption of excise related activities, including
the clearances and duty payments and to ensure that the transition is
smooth. However, certain relaxation has been given to small-scale matches
and biri manufacturers from obtaining or converting existing Registration
Numbers into PAN based Registration Numbers. Instead of 10 digits PAN,
they shall be allotted New Registration Number based on 10 digits Old ECC
Number. Even in case on new Registrants of this category will first obtain
ECC Number as before. New Registration Number will be allotted in the same
manner as 15-digit PAN-based Registration Number, with a difference that
in place of PAN the 10 digits Old ECC Number will be used. |
4 |
The Board
desires that the senior officers have to play an active role in managing
the change so as to make the change as smooth as possible. The local
problems affecting clearances and revenue should be resolved on TOP
PRIORITY. Any important deviations from the instructions contained in this
Circular shall be brought to the notice of the Board immediately with
suggestions, if any. |
5 |
There are
three stages in the transition. As a part of over all strategy, Stage I
started in 1999. Stage II will commence from 1st December, 2001 for which
detailed 'information campaign' should be launched. Stage III is the stage
dependent on computerisation and connectivity of the Department. These
Stages are explained below: - |
|
Stage-I |
|
(i)
|
Formulation of
PAN-based New Excise Control Code Number (ECC Number) and its adoption in
1999 was part of this strategy. |
|
(ii)
|
It was decided to
allot nearly 100 lakh existing assessees of Central Excise a number based
on the principles of Common Business Identifier in such a manner that the
normal business activity is not affected adversely. |
|
(iii)
|
It was started with
PAN-based New Excise Control Code Number (ECC Number). Sufficient time was
provided for this purpose. Most of the manufacturers and dealers have
obtained their requisite New PAN-based ECC Number. However, there are some
assessees who have still been informing that the Income Tax Department has
not allotted them PAN. |
|
(iv)
|
The matter was taken
up with the Income Tax authorities. It has come to notice that the
assessees have filled incomplete forms and are not coming forward for
rectification. As a measure of facilitation, the Board had circulated the
name and contact numbers of all the Income Tax authorities so as to
expedite the allotment of PAN to Central Excise assessees on priority. As
a result, large number of assessees could get PAN and New ECC
Number. |
|
(v)
|
As a measure of
smooth transition, the assessees were asked to continue using existing
10-digit [numeral] ECC Code. This code is used for revenue accounting and
reconciliation. |
|
(vi)
|
The National
Informatic Center (N.I.C) was requested to develop software to help
capturing data in computers while generating the New ECC Number. This was
accomplished. The Principal Chief Controller of Accounts was also
requested to develop a software for revenue reconciliation purposes.
|
|
Note:
Stage-I has already been accomplished except that the data in the
Application for New ECC captured by Commissionerates could not be
completely assimilated and developed into National Directory and database
and some assessees have not yet obtained PAN based New ECC Number.
|
|
Stage-II |
|
(i)
|
The existing
Registration Number of manufacturers and warehouse-holders, Personal
Ledger Number and ECC Number will be replaced by PAN based New ECC Number
with effect from 1st December, 2001. The registered dealers will use the
New ECC Number based on PAN as their registration number with effect from
1st December, 2001. |
|
(ii) |
Those existing
registrants who do not possess PAN for any reason are advised to contact
the local Income Tax Officer along with a fresh application Form for PAN
allotment. They may also opt for on-line PAN in select cities. The Central
Excise Divisional Offices are also directed to provide necessary guidance
and support, including interaction with Income Tax authorities. In case of
unreasonable delays, the matter may be brought to the notice of the Board
through the Chief Commissioner of Central Excise. |
|
(iii)
|
The Board has decided
those small manufacturers (proprietorship and unregistered partnership) in
match and biri industries will continue to use old ECC Number allotted by
Central for the time being. Ultimately, they will have to switch over to
PAN-based number in due course. |
|
(iv)
|
In order to bring
about uniformity in the database, the Range Officers, through their Sector
Officers, will conduct an exercise for collecting information from the
existing assessees in the same format as specified in the form for
application of registration. |
|
(v) |
To ensure smooth
transition and monitor the change, the Commissioners of Central Excise
will create a cell under his direct supervision comprising of an
Additional/Joint Commissioner, a Deputy/Assistant Commissioner, a
Superintendent and an Inspector. They will ensure that all the assessees
in their jurisdiction switch over to PAN-based number by 1st December,
2001 and use them in all the documents such as invoices, returns, challans
etc. along with the Old Registration Number of the existing stationary
till 31.3.2002. This is necessary to avoid any hardship to the registrants
regarding fresh printing of stationeries. |
|
(vi)
|
Any communication
from the Department to the assessee, including show-cause notices, where
existing registration number has been quoted/mentioned, they will continue
to be quoted/mentioned along with the new number till further
instructions. |
|
(vii)
|
In case of TR-6
Challans, the assessees are advised to mention both the Old ECC Number
(erstwhile 10 digit code allotted by PAO) and PAN based Registration
number till 1.4.2002. Thereafter, only the PAN based Registration number
will be used. |
|
(viii) |
The Office of The
Principal Chief Controller of Accounts is already developing new software
based on PAN-based New ECC Number for revenue accounting and
reconciliation. Since they require details of each registered person, all
Commissioners are directed to ensure that a computerised list of assessees
may be prepared in the following format in 'MS Excel' and sent in floppies
to the Office of Principal Chief Controller of Accounts, New Delhi, the
concerned PAO and Additional Commissioner, Directorate of Systems, Chennai
latest by 15th December, 2001: -
1. Name of the
assessee 2.
New PAN-based 15 digit Registration Number/ECC Number 3. Old 10-digit ECC Number
(wherever it was given) 4. Location code of the
assessee
Note: First
6-digits of old ECC Number should normally tally with Location code.
However, in those cases where old-ECC Number was not given on account
re-organisation of Commissionerates and change in jurisdictional codes,
the Officer of the Principal Chief Controller of Accounts intends to use
Location Code. |
|
(ix)
|
The
Directorate of Systems will prepare the initial National Directory on the
basis of information received from the Commissioners and make available to
all formations of Central Excise |
|
(x)
|
The Chief
Commissioners will monitor the action taken by Commissioners for allotting
PAN-based Registration Number to all the assessees [who have not yet taken
PAN-based New ECC Number] and also for conversion of existing registration
numbers into PAN-based numbers. They will send report to the DGICCE every
month starting from 1.1.2002 indicating number of existing registered
manufacturers/warehouse-holder, number of existing registered dealers,
number of registered manufacturers/warehouse-holder whose registration
number is converted into PAN-based number, number of registered dealers
whose registration number is converted into PAN-based number. The reasons
for pendency shall be analysed and action taken to overcome problems will
also be reported. DGICCE will send consolidated monthly report to the
Board (by 10th day of the subsequent month). |
|
Stage-III |
|
(i)
|
This Stage
will tentatively commence in January 2003 |
|
(ii)
|
It is
proposed to have All-India connectivity of Central Excise formations (at
least upto Division levels), computerised registration process and
verifications, and National/Regional Data Warehouses. |
|
(iii)
|
Strategy for
collecting and posting additional information in the directory for
complete profiling of each assessee will be communicated in due
course. |
|
(iv)
|
The National
Directory will serve as starting point for development of
National/Regional Data Warehouse. |
|
(v)
|
The National
Networking of Central Excise formation will be feeder for the Data
Warehouse. |
|
(vi)
|
The
Registration process will be re-modelled to allow registration from any
location, including the on-line registration. Any such entry of a new
registrant will create a workload for the jurisdictional office for
verification of address and authenticity of the applicant. The PAN will be
automatically verified on-line through computerised interface with the
Income Tax Department. |
6 |
The Trade and the field formations may suitably be informed
immediately. Special measures should also be taken to give wide publicity
to this change and arrangements should be made to give necessary guidance
to the registrants in order to make the 'switch-over' timely and smooth.
|
7 |
Receipt of this Circular may please be acknowledged. |
8 |
Hindi version will follow. |