Finance Ministry makes PAN card mandatory for Central Excise Registration

Permanent Account Number (PAN) has been made mandatory for private firms seeking central excise registration.

The registration will now be given within two days of filing online applications, as per the new simplified rules formed by the Finance Ministry “to improve the ease in doing business in manufacturing”.

Applicants seeking registration shall mandatorily quote PAN of the proprietor or the legal entity being registered in the application form, a Finance Ministry order said.

“Government departments are exempted from the requirement of quoting PAN in their online application. Applicants other than government departments shall not be granted registration in the absence of PAN,” it said.

Applicant shall also quote his or her e-mail address and mobile number in the application form for communication with the department, it said, adding that the communication with assessee is being made electronic to reduce transaction time.

The registration in central excise envisages filing of application online, submission and examination of documents, verification of premises, submission of verification report, generation of registration certificate and dispatch of its signed copy, among others.

Under the new simplified procedure, once duly completed application form is received online, registration would be granted within two working days and issued online without any examination of the documents and verification of documents or premises before the grant of registration, thus initiating “trust based” registration, the Ministry order said.

The registration is needed to pay central excise duty charged on goods produced within the country.

Simultaneously, assessee would be enabled to electronically pay duty. Further, the assessee would not need a signed copy of registration certificate as proof of registration, it said.

Registration certificate downloaded online from Automation of Central Excise and Service Tax (ACES) website — http://www.Aces.Gov.In — would be accepted as proof of registration.

“Verification of the documents and premises shall be carried out post facto,” the Ministry said in the order, which came into force from March 1 this year.

Existing temporary registrants, except government departments shall apply online for conversion of temporary registration to PAN based registration within three months from the date of the order “failing which the temporary registration shall stand cancelled”, it said.

Similarly, the registrants who have not submitted information regarding e-mail address and mobile number shall submit an amendment application online, the Ministry has said.

The process of de-registration and cancellation of the registration has also been streamlined by prescribing clear procedure for the same so that winding up of business and starting new business of manufacture is made easy.

Every registered person, who ceases to carry on the business for which he is registered, shall de-register himself by making an online application in the website, it said.

“Where there are no dues pending recovery from the assessee, application for de-registration shall be approved within thirty days from the date of filing of online declaration and the assessee shall be informed, accordingly,” the order said.

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