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Rupee_DollarTHMB.jpg Amendment in excise duty exemption for SSI units notified

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Staff Reporter | 02 Sep, 2008
The Finance Ministry in its latest notification (No.8/2003-Central Excise) has provided full exemption from Central Excise duty to goods manufactured by small-scale units i.e. units whose aggregate value of clearances did not exceed Rs. 4 crore in the preceding financial year.

The exemption is available for clearances up to Rs.1.5 crore in a financial year subject if the prescribed conditions are fulfilled.

One of the conditions of this notification is that goods bearing the brand name or trade name of another person are not eligible for exemption barring a few exceptions such as goods cleared as 'original equipment,' goods bearing the brand name or trade name of KVIC, or if such goods are manufactured in a factory which is located in a rural area.

Disputes have arisen in the past about the applicability of this condition to goods that bear the brand name of another person but which are sold under that brand name by the buyer of the goods and not by the SSI unit affixing the brand name.

Examples of such goods are elastic tapes used in the manufacture of undergarments, castings, packing materials such as printed cartons of paper, HDPE bags, Polypropylene caps, metal containers, etc.

On the basis of circulars/ clarifications issued by the Government, from time to time, the brand name restriction was not being applied to such goods and the benefit of the exemption was being extended on the ground that there is no nexus between the person manufacturing the goods and the brand name.

In a recent Supreme Court decision, however, it has been held that the wording of the notification does not allow the benefit of the exemption in this situation as the notification does not envisage a nexus between the manufacturer and the brand.

In the wake of several representations from the trade and industry, notification no. 47/2008-Central Excise was issued, in the capital to amend the SSI exemption.

It provides that the benefit of the exemption shall be available to goods bearing the brand name or trade name of another person if they are in the nature of packing materials, namely, printed cartons of paper or paper board, metal containers, HDPE woven sacks, adhesive tapes, stickers, PP caps, crown corks and metal labels. The amendment comes into effect on the September 1 and shall be available for a turnover of these goods not exceeding Rs. 90 lakh in the remaining part of this financial year, an official press release added. 
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avail of itc or not
shubham | Wed May 2 07:28:07 2018
dear sir if ssi turnover does not exceed in 14-15,15-16 from 1.5 crore so i get itc avail in gst

Excise Exemption
Arun Verma | Thu Sep 1 07:15:57 2016
We have a manufacturing unit in Himachal under Tax Holiday Scheme of 10 years. The ememtion will expire in September 2016. Now my question is that, how and when the excise will be applicable. Will they ( Excise Deptt) treat the manufacturing sales from April 1st or Oct 1st for excise duty calculation.

excise duty exemption
Mukesh shah | Thu Apr 14 11:34:57 2016
U will enjoy the exemption upto 1.5 crore, after that U have to pay duty on remaining T.O of that F.Y(below 4.0Crore).U will also enjoy exemption upto 1.5 crore for the next F.Y.

Mukesh shah | Thu Apr 14 07:40:02 2016
U will enjoy the exemption upto 1.5 crore, after that U have to pay duty on remaining T.O of that F.Y(below 4.0Crore).U will also enjoy exemption upto 1.5 crore for the next F.Y.

sowjanya garimella | Thu Apr 16 16:27:50 2015
In order to get an exemption of 1.5 crores in the present yr ,we should have a turnover of less than 400 crores in the previous yr,but my doubt is whether excise duty should be levied in the previous yr on that 400 crores or not

excise duty to ssi
ub reddy | Mon Jan 26 14:11:28 2015
We have ssi manufacturing unit.we are paying excise duty to our raw materials but we are not eligible to put excise duty to our customers. With this we ssi manufacturer loosing 12.36% excise duty.then what is use of ED exemption.

exise eximption for SSI
S D NIMBALKAR | Tue Dec 9 11:44:42 2014
Current finacial year i will reach turnover Rs 1 crore can i get exemption for exise

Excise and other Exemptions in KVIC
Apurva | Tue May 22 12:21:57 2012
We are a SSI registered company manufacturing Detergents and co related items. Our turnover is below 1.5Cr but we are using cenvat facility . Currently we are planning to take KVIC registration. Please inform me what type of benefits will I enjoy after registration. Also inform me if we do toll manufacturing or job work for some other brand will we enjoy the same benefits. Kindly suggest

KAILASH AGGARWAL | Sun Apr 8 06:36:55 2012
Dear sir, i want to know "IS RECYCLING THE PLASTIC" fully exempt from excise duty ???

Exemption Limit of SSI Unit
Sanjoy | Sat Mar 17 14:22:04 2012
Respected Sir, I am a manufacturer of Railway Locomotives Parts and I expect that my turn over shall be reach 2 crore. Please suggest me I have to take Central Excise registration or not and intimate me the actual Limit

limit of exemption
jasbir singh | Sat Dec 10 07:19:06 2011
we are hand made paper manufacturer kvic unit. what is upper limit of sales for excise duty registration.

MANOJ KUMAR | Thu Nov 3 15:35:45 2011

KANTI PRASAD | Fri Oct 7 08:27:40 2011

SSI exemption to a unit of multi national company
Rakesh Gupta | Thu Oct 6 18:31:12 2011
Hi, sir. please inform me that whether a subsidiary manufacturing unit located in india belonging to a MNC having its other units located in more than 10 countries can get SSI exemption. The logo of the company is same but includes the name of the country in which it is located like SML (Europe), SML (lanka), SML (India) and does not have a product of its name but manufactures the printed labels of paper and textile having name of other brands. Will such unit get the benefit of SSI exemption under Central Excise ACt.

Amendment in excise duty
Mohd.Sadiq | Sat Mar 26 08:31:31 2011
Dear Sir What is the present rate of excise duty for the FY-2011-12?

When i have to go for central excise registration?
g v ramana | Sun Jan 2 05:22:55 2011
i g v ramana,prop of ssi unit having business in fabrication of press components. my gross turnover is Rs160 lakhs in fy 2009-2010 and current financial year 2010-2011 turnover upto 31.12.2010 is rs 200 lakhs. kindly advise when i have to go for excise registration. i hold valid ssi registration and eligible for all benifits as prescribed by govt of mail id is

Excise Duty on selling Imported goods after Value Addition
Vishal Kulkarni | Mon Oct 4 06:16:43 2010
We are a start up company engaged in manufacturing Power units for hydraulic elevators, We are planning to import some components from Germany & Italy and assemble those on the Body made in India (in our Factory) and sell it under our brand, Can you please clarify if such transaction attracts Excise duty as our total turn-over is less than 1.5 crores.

information about excise duty of paper cup machinery
srinivasa rao | Fri Sep 17 15:03:40 2010
dear sir, this is srinivasarao from hyderabad and my unit is recently registered with SSI under TIny unit and i am planning to import paper cup machinery from CHina whether the excise duty exempted for me or how much i have to pay pls try to send information to

  Re: information about excise duty of paper cup machinery
Asif | Thu Mar 13 20:44:02 2014
If you import any items than you have to pay import duties not excise duties.but if you import machinery or a row materials and final product will be exported than you not have to pay import duties.

cenvat credit
D G Ingale | Fri Sep 10 10:42:10 2010
Hi Expert, our business turnover about rs.10 crore and above. we have import machinery taken 100% cenvat credit and 4% Spe. add. duty current fin year thanks & regards

cenvat credit
D G Ingale | Fri Sep 10 10:40:46 2010
Hi Expert, our business turnover about rs.10 crore and above. we have import machinery taken 100% cenvat credit and 4% Spe. add. duty current fin year thanks & regards

pawan seth | Sat Sep 20 01:58:08 2008
it is a positive development, but what about the new year diaries and which also bear the brand name of the company that procures it from a diary dealer or from a manufacturer, if the thought behind this exemption for packing material is bonafide then new year diaries are a more deserving case that should also be provided exemption of excise duty meant for SSI units hence these are not sold or traded by the corporates but used as a media of publicity and they are in no way a case of branding under any defination;any lay man will vouch for this but our respected ministry has overlooked it.

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