Ssi unit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2011 Can anyone please tell me what is the limit of turnover to give intimation to the excise department for the garment industry (SSI Unit) claiming 55% abatement on sale price? IS it 90 lakhs or 90/45%= 200 lakhs (i.e preabatement turnover)

Please reply.. its urgent..

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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20 December 2011 SSI are eligible for exemption from duty under Notification No. 8/2003-CE dated 1-3-2003. The SSI unit need not be registered with any authority.

also noted that:

Unit whose turnover was less that Rs. 4 crores in previous year are entitled to full exemption upto Rs. 150 lakhs in current financial year. SSI unit can avail Cenvat credit on inputs and input services only after it starts paying duty. However, Cenvat credit of capital goods can be availed even if these were received during period of exemption.

As explained above, the readymade garments were ‘excisable goods’ even prior to 28-2-2011. Hence, if your net turnover (excluding Vat/sales tax) during the financial year 2009-2010 was less than Rs 4 crores, you can claim exemption upto Rs 1.50 crores during the period 1-3-2011 to 31-3-2011. If your net turnover (excluding Vat) during 2009-10 was more than Rs 4 crores, you cannot avail any exemption and you have to pay excise duty on all clearances from 1-3-2011 onwards. Duty will also be payable on stock lying in your factory at 0.01 AM on 1-3-2011.

If your net turnover (excluding Vat/sales tax) during 2011-12 was less that Rs four crores (Rs 8.9 crores if calculated on basis of MRP), you can avail exemption upto first clearances of Rs 1.50 crores (Rs 3.33 crores if calculated on basis of MRP printed) from 1-4-2011 onwards. Otherwise, you have to pay excise duty from 1-4-2011 onwards.

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