Ssi exemption

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ravi agarwal (Querist)
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27 July 2011 SIR,
I WANT TO ASK
1) WHETHER EXPORT TO NEPAL AND BHUTAN WILL BE TREATED AS CLEARANCE FOR HOME CONSUMPTION FOR SSI EXEMPTION EVEN IF AMT IS RECEIVED IN CONVERTIBLE FOREIGN EXCHANGE?

2)UNDER SSI IT IS OBSERVED UNDER "SUPEREX INDUSTRIES THAT "The benefit of notification No.8/2003 would be lost only if the manufacturer affixes the specified goods with d brand name of another person WHO IS NOT ELIGIBLE FOR EXEMPTION UNDER THIS NOTIFICATION ..
SO whether it means that if Mr.X (ssi) produces goods under brand name of Mr. Y (another SSI) then value of such goods produced by Mr. X will not be charged to excise duty separately and WILL BE INCLUDED IN ssi exemption?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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27 July 2011 Wherever the turnover value of the SSI is well within specified limit, the manufacture has to submit a one time declaration, as given in the Notification 22/98 (NT), to the Jurisdictional Assistant Commissioner of Central Excise and obtain an acknowledgment. ‘Specified Limit’ is explained as full exemption limit minus RS.10 Lakhs i.e. under Notification No. 8/99 RS.50 10 = RS.40 Lakhs. However no declaration need to be submitted, if the unit remains within the specified limit.

It is to be noted that exemption from Registration is not available if the goods exempted under Notification 8/99 exceeded RS 50 Lakhs for Home Consumption (i.e. excluding exports but including exports to Nepal and Bhutan ) either during the previous financial year or during the current financial year. In other words, once the unit crosses the exempted limit of RS.50 Lakhs, thereafter it cannot seek exemption from Registration even though the product may be entitled to fresh exemption, in subsequent years. Having Excise Registration does not mean that the SSI can never avail duty exemption after Registration. Thus the availability of exemption from Registration and the requirement of Registration and the requirement of Registration for various exemption notifications is tabulated below for easy understanding and better appreciation.

more info:-

http://220.227.161.86/10586apr05_p1359-60.pdf

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