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Raj Kumar Kothari (Manager)     20 January 2014

Ssi limit for central excise duty

We are having a SSI unit and doing business of manufaturing as well as trading of goods being purchased from other industries. While calculating total annual turnover for SSI industries for central excise purpose during the financial year , only turnover for the items which are being manufactured by our unit will be taken into account or turnover of all other trading goods which we are purchasing and selling from other industries will also be added in the annual turnover. It is further to clarify that we are trading in those goods only which are not manufactured at our unit.

 

Kindly advice



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 4 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     21 January 2014

Number of Concessions provided in Notification No.8/2003, dt:1/3/2003, SSI units whose turnover is less than Rs.4crores inthe previous financial year are eligible for the concession. If SSI unit does not avail CENVAT on inputs, turnover upto Rs.150 lakhs is fully exempt. If SSI unit avails CENVAT on inputs, it has to pay full normal duty on all its clearances. Goods not eligible for SSI concession Goods with other's brand name not eligible. Goods manufactured by an SSI unit with brand name of others are not eligible for SSI concession, unless goods are manufactured in a rural area.

Raj Kumar Kothari (Manager)     23 January 2014

Thanks for the reply. But my query is whether turnover of any trading business will also be counted in the annual turnover of the factory. For instance a factory is selling exciseable items of Rs.1.20 crore which are manufactured by the unit and selling items of Rs.0.60 crore by way of trading of goods purchased from others. In that case total annual turnover for central excise purpose will be Rs.1.20 crore or Rs.1.80 crore? Further will he be required to get it registered with central excise department.

Harendra Kumar (A Practicing Lawyer)     10 February 2014

In this regard your both Sale are calculated in this matter and also CBEC is inserted a Notification in this regard 8/2007 dt. 01/03/2007 instead of N/F No. 08/2003 dt. 01/03/2013.

Harendra Kumar (A Practicing Lawyer)     13 February 2014

SSI Exemption Notification No. 08/2007 dt. 01/03/207 instead of N/F No. 08/2003 dt. 01/03/2003


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