Ssi exemption

Omkar Shirsat (CA Final Student) (72 Points)

16 July 2013  

Hello Everyone.

Under SSI Exemption a manufacture is exempt from payment of Excise duty.

Now,

There is a manufacturer Mr. A. He produces 1 type of product and procures other type of product via job work. Since turnover of product produced by the manufacturer himself does not exceed rs. 150 lacs, he is eligible for SSI exemption. For calculation of turnover of Rs. 400 lacs, job work products are excluded.

So i need to know if the job-worker is required to charge excise duty on the goods produced by him (Which are excluded from calculation of 400 lacs) since the manufacturer is exempt from payment of excise duty vide SSI exemption..