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Excise duty query for ssi

hardik gupta (manager) (40 Points)

14 February 2014

Dear sir,

i am working at ssi and i have certain query. we are an ssi unit and for current year my turnover is Rs 1.3 crore

presently while writing this email.

my query what procedure i have to do now? i have to file declaration? last year also my turnover had crossed 90 lac

but i had not filed declaration.

Also what will be procedure after 1.5 crore? and also what will happen if i dont file declaration and my turnover doesnt cross 1.5 crore... (say it stops at 1.45 crore).

Please guide me in this matter as i have to despatch lot of pending material and i have stopped the sales because of this.

thanking you.

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10 Replies

CA Piyush Jhawar (Chartered Accountant) (545 Points)
Replied 14 February 2014

@ Harish Oza

The implications are very simple, let me just summarize them for you:

1.Being an SSI you are not liable to pay Excise Duty on clearences upto 1.5Cr Rs.

2.You have to register yourself when your turnover reaches exactly at the point of 1.5Cr Rs.

3.If in P.F.Y your clearences crossed 90 lac rupees then you have to file a declaration with the department of central excise mandatorily in the C.F.Y.

So the point is declaration is to be filed in a F.Y only if in the P.F.Y your clearences crossed Rs.90 lacs.

1 Like

CA Piyush Jhawar (Chartered Accountant) (545 Points)
Replied 14 February 2014

@ Harish Oza

After 1.5 Cr what happens is just the fact that you have to calculate what are your clearences that are eligible for the exemption of Rs.1.5Cr and what clearences are not elgible (like manufacturing of iron, steeel etc.) for exemption for the Rs.1.5Cr. limit.You have to check them right now too wether your goods are eligible for that exemption or not.

Also you have to get registered under central excise law at that point of 1.5Cr. Rs. (you can always do that before reaching 1.5Cr.!)

Also you shall have to send periodical returns as per your status in last F.Y. (Monthly/Quarterly as the case may be)

hardik gupta (manager) (40 Points)
Replied 14 February 2014

Thank you for your very informative reply sir and it covered my all points...now my final query is i am not going to exceed the 1.5 crore turnover that's final....now what are the implications if i don't File the declaration with the dept? Last year had exceeded the turnover above 90 so technically I am required to file declaration...but what if I don't. ..can I ignore the declaration? Also any legal implication for me if I don't file?

CA Piyush Jhawar (Chartered Accountant) (545 Points)
Replied 14 February 2014

@ Harish Oza

Yes you will be held liable for violating the provisions of Rule 9 of Central Excise Rules 2002.The implications of this are:

1.Rule 25 comes into play (Penalty): Your goods will be confiscated and a penalty will be imposed upon you.

So the implications of this are quite far reaching.Also let me mention that this was just the Civil Liablity imposed upon you.You may also be subject to Criminal Proceedings in a court of law.(However this is not very likely considering your clearences)

hardik gupta (manager) (40 Points)
Replied 14 February 2014

Ok sir got your point and you explained to me in quite simple way..hats off to you...final query!! I crossed 90 lakh 2 months back and I file my declaration now so any thing to worry? Thank you sir was indeed a pleasure to get knowledge from you

CA Piyush Jhawar (Chartered Accountant) (545 Points)
Replied 14 February 2014

@ Harish

Harish, I haven't come across a time limit as such for filing the declaration but Let me again re-iterate a very important fact "You are required for registration in Current Financial Year if in Previous Financial Year your clearences exceeded Rupees 90 Lacs". So get yourself registered accordingly.

CA Piyush Jhawar (Chartered Accountant) (545 Points)
Replied 14 February 2014

@ Harish

That means you have to file the declaration in the context of the Current Financial Year before reaching the 1.5Cr Rs. limit (As per my opinion)

Smruti Phadnis (Manager Accounts) (22 Points)
Replied 25 February 2014

sir

i have got a doubt, we are ssi unit registered under excise as manufacturers, now we want to trade in few products. how to go ahead with it .what are the procedure to follow

CA Piyush Jhawar (Chartered Accountant) (545 Points)
Replied 26 February 2014

@ Smruti

If you are wanting to trade, you can do so.This step requires compliance with VAT laws (Regarding payment of tax and registration).Check with your local VAT law (As it is different in every state) for further details.

Sushila (Excise Exicutive) (21 Points)
Replied 25 December 2014

Sir,

My company is under SSI unit I have got Excise Regitration but my turnover is not more then 1.5 Cror, so please tell me wether I am liable to pay excise duty or not and in purchase we are paying excise duty so can i claim excise duty in my books or not?

Thanking You

Sushila