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Ssi exemption

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Querist : Anonymous

Querist : Anonymous (Querist)

12 March 2013 One of our client has started manufacutring in the year 2011-12 and got themselves registered under the Central Excise in feb 2013.
Turnover details are :

2011-12 - Rs.60.00 lacs
2012-13 - Rs.300 lacs approx.

after Rs.150 lacs clearances which reached around oct/nov 2012 they did not charged excise duty from customers till now.

Now my query is what to advice to client.Since clent didnt charge excise duty on manufactured goods till march 2013 and hence not paid to department.
In this situtaion can we avail SSI Exemption from 01.04.2013 since turnover in previous F.Y2012-13 is less than 400.00 lacs.
But when we will provide balance sheet for F.Y. 2012-13 (for claimng SSI) which depicts turnover around 300 lacs the department may ask that why the unit didint pay excise duty for the F.Y. 2012-13 when turnover exceeded 150lacs.
Kindly advice the best option to be taken in this situation

Arun Kumar Singh

Arun Kumar Singh (Expert)

13 March 2013 You should pay the duty after exemption limit otherwise excise department can raise the demand with interest and penalty and you will pay it. Next financial year you should take the exemption upto 1.5cr.

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