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Excise duty

chandra sekar (Manager-Accounts) (387 Points)

10 July 2012

We are registered under SSI and in the field of manufacturing tarpaulins. Since we have threshold limit of 1.50 crore, for exemption, we were yet to register ECC . Please let me clarify, under Excise rules, when we have to register under Excise ? or Even though we were under exemption, is it required to register and obtain ECC and submit only declarations to the department, till we come under coverage?

Also please let me clarify the the process of returns in case of registerd under excise and exempted.

v.p.chandra sekar

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Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 11 July 2012

Full exemption from excise upto the first clearances of Rs. 150 lakhs, starting from 1st April every years and no need to registered with excise authority. After the turnover crosses Rs. 150 lakhs, full normal duty is payable. The SSI unit can avail cenvat credit on inputs in respect of inputs used after turnover croses rs. 150 lakhs even if an assessee crosses turnover of Rs. 4 crores he has to only pay duty at normal rate. SSI units can file quarterly return.