SSI CENVAT credit

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This query is : Resolved

SREELALITHA V (Querist)

08 February 2009 1. The unit is enjoying SSI exemption notification. Now the exemtion limit crossed. During 07-08 the turnover was below 1.50 Crores and in that year it acquired capital goods with a cenvat of around Rs. 3 Lacs. As now the limit crossed whether the cenvat of Rs. 3 lacs can now be taken into accout for payment of duty.

2. Whether goods manufactured for capitive usage ie., moulding boxes is treated as value for the purpose of 1.50 crores exemption or to be included.

3. Whether Sales rejection is to be considered for 1.50 crores exemption.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

08 February 2009 You have to opt carefully to claim exemption limit.

Once you have opted for exemption again you cannot go back to that year. The purchased capital assets will lose its excise benefit. NOw you cannot claim the capital asset purchase benefit.

Goods produced for captive usage will be considered as a production.

Regection will be reduced while arriving at the turnover but when goods are rejected you should have informed excise authorities before taking bank into account. If you have done that then you can take the benefit.

This is the reason why while choosing the ssi exemption limit you should forsee next five years sales and capital equipment investment then you should take a decission to avil the benefit.

nilesh kshirsagar

nilesh kshirsagar (Expert)

08 February 2009 1) as per your query you are saying the excise is around 3 lac that means your goods comes with excise invoice then in this case you can avail and utilised the credit as capital goods 50 % in this year & 50 % in next year

2) you have not mentioned your final product.if moulding boxes are marketable then the value of such is inculdable

3)if sales return are with in six months then the it is excluded from the turnover but if it exceed six month in that case it is included in turnover

Nilesh K-Sagar
K-Sagar Management

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