Excise limit for ssi manufacturinf second hand capacitors

jiteshmadeka (Querist) 07 June 2015 This query is : Resolved
I am interested in setting up a SSI unit to buy old capacitor for induction furnace and repair them and sell in the open market what would my excise duty limit foe exemption?

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S R agrawal (Expert) 09 June 2015
Dear Mr. Jiteshmadeka,

As you have stated that you plan to repair old and used/obsolete Capacitor for Induction furnace.

At the first instance, repairing of goods does not amount to manufacture, as such no Central Excise Duty is leviable in your case.

As per Section 3 of the Central Excise Act, 1944 which is charging section, there shall be levied a Duty of Excise as CENVAT duty on the goods manufacured or produced in India.

Thus Manufacture is a pre-condition to levy Central Excise Duty. In any case SSI limit is Rs. 1.5 Crores in a financial year subject to the condition that Value does not exceed Rs. 4 crores in Preceding Financial year and other conditions in the Notification.

Thanks and regards,

S R AGRAWAL.

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