Central Excise registration of SSI Units

This query is : Resolved

Dolly J Jagad (Querist)
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13 August 2010 Dear Members,

I have few queries with respect to the Central Excise Registration. I request you to put your inputs and give me suggestions on the below queries.

The Facts are as follows:

a. Assessee is a SSI Unit
b. The Value of Clearance is below Exemption Limit of Rs. 1.5 Crores.
c. Voluntary Registration is being undertaken for Excise Control Number.
d. Registration has to be done in the month of August 2010.

The Queries are as follows:

a. Whether the Exemption limit of Rs. 1.5 Crores is available to only Small Scale Industrial Units?

b. If a Small Scale Industrial unit opts for a voluntary registration under Central Excise(Value of Clearance being less than Rs. 1.5 Crores), should the unit pay the duty from the very 1st day of the Financial year or from the date on which the registration application is filed?

For Instance,
SSI Unit "X" has been manufacturing and selling a product from past one financial year. X wants to opt for voluntary registration in the F.Y 2009-10 in the month of August 2010. The value of Clearance for the period April 2010 to till date(12th August 2010) is Rs. 30 Lacs. So if the registration application is filed now that is during the month of August 2010, should the Excise duty be collected from the customer and paid only after applying for registration or X has to calculate the Excise duty payable from 1st April 2010 to till date and remit it to the Government out of his own pockets along with the Interest .

c. What is the rate of interest payable for belated payment of Excise Duty?

d. What are the important notifications, rules and provisions which can be used to resolve the above queries?

Thanks.

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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14 August 2010 Ans to your quarry

A. yes it applicable only to SSI units. SSI unit which has turnover of upto 4 crore in p/y is eligible for this exemption.

B.if SSI has availed exemption then it has not to pay duty upto turnover of 1.5 crores. after that it has to pay duty.

C. 13 %

D. Notification No. 8/2003