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Excisibility

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Surabhi Saraogi

Article

21 Points Posted on 18 October 2012

There is a concern producing Non-excisible goods of lets say with a turnover of Rs. 60 lacs. Now, it has also started manufacturing excsible goods with a turnover of approx Rs. 3.50 Cores.. So, what will be its status (SSI/ Non-SSI) for the next Financial year?

Will the Turnover will be taken as Rs. 3.50 Crores or Rs. 4.10 Crores to check the Status?

And what about Exemption of Rs. 150 lacs, if the concern results as SSI? Will the exemption amount will include the sales of Non-Excisable goods also?

What can be the other solutions to prevent the Non-Excisible goods from getting taxed in the above case if it will be included?

Can leasing it out to a related concern or hiring a job worker will help it out?

Please support with the circular no etc with your answers,if any....

Replies (1)

anik dey

job

46 Points Posted on 18 October 2012

Unit whose value of clearances of excisable goods does not exceeds Rs. 4.0 crs entitled to SSI exemption.Turnover will be taken as 3.5 crs to check the status.

Exemption is available upto 1.5 crs of value of first clearances of excisable goods. Thereafter pay normal duty and can claim CC on inputs. maintain separate BOAs' for excisable and non excisable goods.

Non excisable goods will never be included and taxed.

Even Rs. 60 lacs value would be excisable goods then clubbing provisions would be attracted if leased out to any job worker.

exemption is based on unit not on entity.

See in detail notification no. 8/2003 for further clarity.