EXEMPTION U/S 8/203

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2011 1. A Unit is registered under Excise Act and has filed his return upto 3/2011
2. The aggregate assessable value of 31.03.2011 was Rs. 162 lacs but in current year 2011-12, it will not be more then 130 lacs.
3.The Unit wants to avail Exemption under 8/203 for year 2011-12.
4. The closing stock of 31.03.11 was cleared in current yaer by paying Excise Duty. There was no raw materials left on 31.03.2011,
5. Whether Unit has to surrender the Excise Registration first and then claim exemption under 8/203?
6. Whether duties paid on manufactured stock of 2010-11 will debar the Unit in claiming Exemption under 8/203?

P.Bashista

P.Bashista (Expert)
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04 May 2011 Sir,
You can write to your jurisdiction Asst. Commissioner that you will be opting for SSI exemption for the year 2011-12. After that you do not need to pay duty on any goods cleared upto Rs. 150 lacs.
The SSI exemption is allowed in a current financial year on the basis of your turnover in the previous financial year. If the turnover in the previous financial year was less than Rs. 400 lacs, you can avail the SSI exemption in the current financial year.
In regard to the surrender of registration it is your choice. Either you can clear the goods duty free upto Rs. 150 lacs and keep filing a nil return or u surrender the registration and take a new registration, the day you cross the Rs. 150 lacs threshold.
As your turnover was already below 400 lacs in the previous year 2010-11 you are not barred from claiming SSI exemption for 2011-12.