Dealers registered under Central Excise Rules 1944 are called registered excise dealers. Such dealers should maintain the prescribed RG23D register and file Form 2.
Quarterly Return (Form 2) is proposed vide notification number 73/2003 C.E. (N.T.) exercising the powers conferred by Rule 7(6) of the CENVAT Credit Rules 2004. It is a quarterly return to be filed by registered first stage and second stage dealers and importers with details of:
● Excise sales invoices issued.
● Excise purchase invoices based on which credit is passed on.
Only when there is a sale, the corresponding purchase can be shown in this form. Hence, all sales transactions have to be shown in Form 2 by providing the corresponding purchase details. Only the duty paid during purchase can be passed on while recording a sales invoice. Amount of duty passed on does not depend on the sale value.
On selling to another registered dealer/importer/manufacturer, Rule 11 invoice has to be issued with details of duty passed on. While selling to consumer or an unregistered person, commercial invoice must be issued (as duty cannot be passed on).
Dealers and importers can e-file returns:
● Offline by downloading the XLS Utility from ACES website, filling the data, generating XML file and uploading the XML to the ACES website.
● Online by logging onto ACES website and filling the web-form.
● By using the XLS Upload option provided in the dealer's login to directly upload, the excel file comprising a simple listing of excise sales and purchase invoices in two separate worksheets, to department website.
The periodicity of filing returns is quarterly and the due date for e-filing is 15th of the month succeeding the completed quarter. For example, if Form 2 has to be filed for the quarter Apr-Jun, the due date for filing would be 15th of July. (https://www.aces.gov.in/Ret_FAQ.jsp).
First Stage Dealer
A first stage dealer is one who purchases goods directly from:
● The manufacturer under the cover of any invoice issued in terms of the provision of Central Excise Rules 2002, or from the depot of the said manufacturer.
● The premises of the consignment agent of the manufacturer or importer.
● Any other premises from where the goods are sold by or on behalf of the manufacturer.
● An importer or from the depot of an importer.
Effective from 1 March 2014, an importer who issues CENVAT invoice is also considered as first stage dealer.
Second Stage Dealer
A registered dealer who purchases goods from the first stage dealer is called as second stage dealer.
Sl. No. |
Name of Duty |
Duty Code |
Method of Calculation |
1 |
Basic Excise Duty |
CENVAT |
On Assessable Value |
2 |
Special Excise Duty |
SED |
On Assessable Value |
3 |
National Calamity Contingent Duty |
NCCD |
On Assessable Value |
4 |
Additional Duty of Excise on Textile & Textile Articles |
AED_TTA |
On Assessable Value |
5 |
Special Additional Excise Duty |
SAED |
On Assessable Value |
6 |
Additional Duty of Excise |
ADE |
On Assessable Value |
7 |
Additional Duty Levied Under Clause 85 |
ADE_LVD_CL_85 |
On Assessable Value |
8 |
Additional Duty of Excise on Goods of Special Importance |
AED_GSI |
On Assessable Value |
9 |
Education Cess |
EDU_CESS |
Basic Excise Duty + All Duties |
10 |
Secondary Education Cess |
SEC_EDU_CESS |
Basic Excise Duty + All Duties |
11 |
CESS ON AUTOMOBILES |
CESS_AUTOMBL |
On Basic Excise Duty |
12 |
CESS ON BEEDI |
CESS_BEEDI |
On Basic Excise Duty |
13 |
CESS ON CASHEW |
CESS_CASHEW |
On Basic Excise Duty |
14 |
CESS ON CHROME |
CESS_CHROME |
On Basic Excise Duty |
15 |
CESS ON COKE COLA |
CESS_COAL_COKE |
On Basic Excise Duty |
16 |
CESS ON COFFEE |
CESS_COFFEE |
On Basic Excise Duty |
17 |
CESS ON COPRA |
CESS_COPRA |
On Basic Excise Duty |
18 |
CESS ON COTTON FABRICS |
CESS_COTN_FBRC |
On Basic Excise Duty |
19 |
CESS ON COTTON |
CESS_COTTON |
On Basic Excise Duty |
20 |
CESS ON CRUDE OIL |
CESS_CRUDEOIL |
On Basic Excise Duty |
21 |
CESS ON FIBRE |
CESS_FIBER |
On Basic Excise Duty |
22 |
CESS ON FEATURE FILMS |
CESS_FILMS |
On Basic Excise Duty |
23 |
CESS ON IRON ORE |
CESS_IRON_ORE |
On Basic Excise Duty |
24 |
CESS ON JUTE |
CESS_JUTE |
On Basic Excise Duty |
25 |
LAC CESS |
CESS_LAC |
On Basic Excise Duty |
26 |
CESS ON LIMESTONE AND DOLOMITE |
CESS_LIME_DLMT |
On Basic Excise Duty |
27 |
CESS ON MANGANESE |
CESS_MAGNSE |
On Basic Excise Duty |
28 |
CESS ON MARINE |
CESS_MARINE |
On Basic Excise Duty |
29 |
MATCHES CESS |
CESS_MATCHES |
On Basic Excise Duty |
30 |
CESS MEDICINAL |
CESS_MEDICINAL |
On Basic Excise Duty |
31 |
CESS ON MANMADE FABRICS |
CESS_MNMD_FBRC |
On Basic Excise Duty |
32 |
NATURE GAS CESS |
CESS_NATRL_GAS |
On Basic Excise Duty |
33 |
CESS ON OIL |
CESS_OIL |
On Basic Excise Duty |
34 |
CESS ON OTHER COMMODITIES |
CESS_OTHR_CMDT |
On Basic Excise Duty |
35 |
CESS ON PAPER |
CESS_PAPER |
On Basic Excise Duty |
36 |
CESS ON RAYLON |
CESS_RAYON |
On Basic Excise Duty |
37 |
CESS ON RUBBER |
CESS_RUBBER |
On Basic Excise Duty |
38 |
CESS ON SALT |
CESS_SALT |
On Basic Excise Duty |
39 |
CESS ON STRAW BOARD |
CESS_STRW_BRD |
On Basic Excise Duty |
40 |
CESS ON SUGAR |
CESS_SUGAR |
On Basic Excise Duty |
41 |
CESS ON TEA |
CESS_TEA |
On Basic Excise Duty |
42 |
CESS ON TEXTILES |
CESS_TEXTILE |
On Basic Excise Duty |
43 |
CESS ON TOBACCO |
CESS_TOBCCO |
On Basic Excise Duty |
44 |
CESS ON VEGETABLE OIL |
CESS_VEG_OIL |
On Basic Excise Duty |
45 |
CESS ON WOOLEN |
CESS_WOOLEN |
On Basic Excise Duty |
Unable to determine Tariff details for Stock Item
Unable to determine Excise Applicability
Unable to determine the Nature of purchase
Unable to determine Supplier details
Mismatch in tax amount
Supplier invoices are not linked to Clearance