Excise Registration Limit

I may summarise the questions and answers as under:

Dear sir,

I am in process of setting up an manufacturing unit at Bommala Ramaram, Andhrapradesh for 500 TPH capacity of fully Autimised Crushing Plant and the unit will be under SSI registration. All the Machineries are being imported from German.

To fullfill all our statutory obligation I would like to know, do I need to go head with Central Excise registration ? If so what are the procedure of registration? and is registration Forms can be downloaded from Entral Escise Website or any other sources.

On line registration is available?

I shall wait for your helpfull reply.

Regards

T. Madhava Rao

Dear Sir,

We are availing CENVAT credit and paying duty from 0 turnover. During August 2007 we have supplied material to Deptt of Atomic energy with exicse exeption certificate 10/97.

We have not charged any excise to DAE and have not paid any excise. There was not a single raw material used for manufacturing this item on which we have taken credit. Now the range officer is asking for 10% of the cleared amount as excise. Where as there is no such provision under General Exemption no. 37.

Can somebody give me proper guidance?

This refers to the query of Mr. T. Madhava Rao.

C. Excise is attracted only if you manufacture something. The first question to be answered is - whether the process undertaken in your factory amounts to manufacture of goods. If no - you are not required to pay C. Excise duty and are not required to follow any C. Excise procedure.

However, if the answer is yes, determine classification of the goods under C. Excise Tariff.

In the first year, you could be entitled to avail exemption upto your clearance value of Rs. 1.50 Crores. (You will have to see notification 8/2003-CE. This is available in the Tariff).

At present online registration is not available.

Books: You can refer the C. Excise manual by R. K. Jain and books by Mr. V. S. Datey.

Websites:  

https://www.cbec.gov.in; 

https://dateyvs.com/index.htm

This refers to the query of Harshadbhai Ukani.

Rule 6 of Cenvat Credit Rules, lays down the basic principle that Cenvat Credit is not available on that quantity of inputs (and 'input services') which is used in manufacture of exempted final products. Where the inputs are common to dutiable and exempted goods, there are three alternative mechanisms to pay back the credits. One of them is - paying 10% of the price of the exempted goods.

Since, in your case, you have not availed Cenvat Credit on the inputs used to manufacture the exempted goods, there is no question of paying 10% etc. There will be a question of proving this fact.

Difficulty will arise if you avail credit on some common 'input services'.

Dear Sanjayji,

Thanks a lot for your reply.

Does telephone bill will be considered as common input services or it is purly service related to manucturaing of that items?.

We are taking service credit for mobile telephone bill of director. No other credit is availed.

With regards

Harshdbhai Ukani

Respected Sir,

I am having an SSI units and falling under Second option i.e. taking cenvat credit from 1st Invoice. My total turnover includind export sales and sales to EOU unit is 1. 05 crores for 2007-2008. Our Regd. office is situated in A'bad and unit is Pvt. Ltd. company.

My brother is engaged in same line of business and producing same item. I have no any interest directly or indirectly in my brother's unit. But as a family member I am supporting him in terms of use my office address as Administrative office, so that his clients can communicate and correspondence easily as unit is located in remote area.

Now my question, IS IT PERMISSIBLE BY LAW ? SHALL WE KEEP THE RECORDS IN SINGLE PRIMISES OF OFFICE ?

Your reply in this regard will highly be appreciated.

Thanking you.

ANIL DHAMEJA

Dear Anil,

Central Excise registation is given for Manufacturing location, which you are telling is in remote area. you can keep records in single premises. bt pl earmarked the separate area and keep separate records otherwise in case of raid or search you may land up in problem.

so far as central excise is concernd records are to be maintained at factory irself.

Regards

Vijay Agrawal

Rgds,

Pravin Roy

I want to know the SSI limit for manufacturing automobie industries.

What is the turnover limit to file declaration in case of ssi units having turnover of less than 1.5 crores. What if the declaration is not filed??

Sir,

our company is S.S.I. unit, every time we are avaling the s.s.i exemption limit (1 cror) by informing the Department, this time we forgot to inform department that we are avaling s.s.i exemption. sir please let me know the impact

ramana kumar

Dear Sanjay

With reference to your reply above, do we have any case law or any ruling where this view has been taken? Pls let me know the basis as to why we should not include the supplies made to governement agencies. Also, if a company supplies goods to both i.e. govt. agencies and private persons then what all will be included in turnover.

Regards

Sumit