21 September 2011
In the Previous Year the clearance from the SSI Unit was below Rs.400 Lakhs. In the Current Year Excise Duty has been paid from the 1st day of March i.e. without availing the exemption up to clearance value of Rs.150 Lakhs.
Questions :- 1. Whether the unit is still classifiable as SSI Unit under excise laws? 2. Is the unit eligible to pay duty and file returns quarterly as applicable to SSI Units?
Please clarify the above citing relevant notifications, rules and provisions under Central Excise.
You have answer in your own question, the status of SSI in Excise Law is turn-over base and relevant notification for the same.
It is optional to Industry to opt for SSI exemption or not ? In your case you have not Opt for SSI exemption, and start paying ED since day one. hence, you are not a SSI unit in Excise Law.
For argumentative purpose if I say, that as per notification no. 8/2003 first comes whether an unit is SSI (i.e. Value of Clearance in the PY is less than Rs.400 Lakhs) and then the unit has an option to avail the said exemption.
Therefore for not availing of the said exemption, the unit cannot be denied SSI status.
Can you please give some concrete argument citing relevant notifications and rules there under?
22 September 2011
SSI benefit is available to the assesee unless he cross 400 Lacs of home clearance, ( notification 8/2003 as amended), but the return filing would get monthly, as the assesee is not availing the value based exemption.
quarterly return is only for the assessee who are availing value based exemption contained under notification 8/2003
CAclubindia
