Ssi turnover for excise duty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2014 Dear Sir/ Madam

our company manufacture
1. finished goods
2.manufacture some material which used in manufacturing of other finished goods by other company.

We calculate the turnover 1.5 crore for both products and we charge 1% excise duty on 1st product and 2% excise duty on 2nd product without cenvat credit.

Now we find that our 2nd product is not excisable, no need to charge 2 % excise duty. but while calculating 1.5 crore exemption most sale is of 2nd product only , the 1st product sale was only upto 50 lakh.
then now is we require to pay 1% excise duty for 1st product if we not cross the 1.5 crore limit for that?

We have filed return for Oct to Dec but with this query not filled return for Jan to march so what should we can do now?

please reply as early as possible

Santosh Kalburgi

Santosh Kalburgi (Expert)
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25 April 2014 Hello,
If you are registered as a SSI for excise, you are required to pay duty only if the turnover exceeds the exemption limit of 1.5 crores. And you are not allowed to take cenvat credit on the turnover which you are claiming exemption i.e upto 1.5 crores. However Cenvat credit can be availed on the turnover in excess of Rs 1.5 crores.

Also note that Exempted clearances or nil rated clearances are not to be considered in computing 1.5 crores.
Hence in your case the excisable turnover would be Rs50 lakhs only. And there need not be any duty paid on this as you are eligible to claim exemption upto 1.5 crores.
Also I would like to know why are you paying 1% and 2 % on those products though you are eligible for exemption.
Regards,
Santosh G Kalburgi
Cost Accountant
9742022309
santoshandco.in