Sir, We are a SSI unit manufacturing Packaging materials for various other companies, right now our turnover is around 1 crore and as such we have not registered under excise, we expect the turnover to double from the next financial year what are we supposed to do. Also please elaborate on this term First slab of 150 lakhs - There is full exemption from excise upto the first clearances of Rs. 150 lakhs, starting from 1st April every year, Second slab after initial 150 lakhs - After the turnover crosses Rs. 150 lakhs, full normal duty is payable. The SSI unit can avail Cenvat credit on inputs in respect of inputs used after turnover crosses Rs 150 lakhs.
i am not able to understand this. presently we purchase raw materials from a dealer who is under excise, he gives us a excise invoice but we do not claim modvat. What are the changes we have to do in case we need to avail the modvat. Does full exemption from excise mean that the said dealer should give us the material without charging excise duty to us. Kindly clarify