Ssi unit exemption when unit is shifted

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2011 Hi

One of our client who is SSI unit had opted payment of duty from 1st of april availing cenvat credit. After crossing 50 lakhs of turnover in FY, they have shifted the unit to different range and commissionerate. while shifting they have surrendered the license and not transferred any cenvat to new unit.
in the new unit they have opted out of execise(based on some advise from dept) and have gone for new license after reaching 1.5 crores and started duty after 1.5 crore. Is taking new license will be treated as new plant for revenue? If no, Whether they are liable to pay duty not collected from customres? Is there any rule under SSI that after opting for duty payment from 1st april, can they discountinue in middle of the year and re-start after reaching limit of 1.5 cr?

U S Sharma

U S Sharma (Expert)
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02 November 2011 every premises has to get registered seperately.

if the surrender has been accepted before new registration, then the process is right as per act. but if the new registration has been granted before surrender of old regn, then 8/2003 option can not be made available to assessee.

8/2003 is limited upto 150 lacs, and thereafter duty payment with input credit is available.

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2011 Sir, thank you for your response. The company name and management same but the company has just shifted premises and not opted for Central excise regin immdtly. Now the CE audit committee is asking the company to pay duty as they have not followed the right process. Since they had opted for payment of duty and since there is no change in the entity, they are stating that they should have taken new license immdlty and pay the duty. R they right?

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