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Instructions regarding conversion of Registration Number of existing
registrants into PAN-based Registration Number
Circular
No. 594 Dated 19th October 2001
I
am directed to say that the Board has introduced Permanent Account Number
[PAN]-based Registration Numbers for the persons registering with the Central
Excise Department of or after 1st November 2001 in order to facilitate complete
adoption of 'Common Business Identifier Number [C-BIN]' in Central Excise. The
detailed instructions relating to new Registration Procedure are contained in
Circular No. Circular No. 593/30/2001-CX dated 19th October 2001.
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 Informatics 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.
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