Excise ssi doubt

1. SSI unit whose turnover is less than 4 crores are eligible for SSI exemption upto Rs. 1.5 crores.

2. The turnover crosses 150 lakhs, Does excise duty paid on the raw materials lying as the closing stock can be availed as cenvat credit.
3. During the end of the year you will reverse the cenvat credit.
 

Dear Ananda

1.Yes a newly started unit can avail SSI exemption in its first year as its turnover was NIL during the previous year but for availing exemption it is necessary that goods manufactured by it are mentioned in LIST OF SPECIFIED GOODS in notification 8/2003.

2.Yes excise duty paid on raw material lying as closing stock as on date of crossing the limit of Rs 150 Lakhs shall be admissable as CENVAT credit.since Law mentions that credit can be booked after clearances of Rs 150 Lakhs.There is no provosion that credit shall be booked on fresh purchases after 150 Lacs Clearances.Moreover logic is that Raw material lying in stock will be used in the manufacture of excisable goods not exempted goods.

3.Yes CENVAT credit have to be reversed if at the year end your turnover is less than 400 Lacs.If your turnover is less than 400 Lacs that means you are eligible for SSI exemption next year and thus you cannot availed credit on inputs to be used in manufacture of exempted goods.The answer is opposite in case your turnover is more than 400 Lacs.

Dear ankush and arun,

Thankyou very much for your reply. According to rule 9 (valuation rule) when an assessee sells goods to a relative the excise duty must be charged on the price for which the relative sells it to an ubrelated buyer. My query is that whether the additional excise duty calculated under rule 9 should be shown in the original invoice provided by the assesse to his relative?? despite not knowing the price which the related buyer is going to charge for various unrelated buyers. Or that valuation and the duty for that additional valuation can be worked out and paid separately.

Thanks in advance

Dear sir.

  we want to sent a machine for repair ( interstate ) , which was purchased before 3 years. we have entered into excise last year. 1. is it required to intimate excise office 2..what are the document s required to dispatch th machine

Please help me...............

Thanking You

Renju

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Dear Vaidyanathan

 At the time of sale it is known that the sale is to a realated party. The asseesable value hence can not be determined under Section 4 of C Excise Act and Valuation Rule has to be referred to . You have rightly said that valuation in such case would have to be as per Rule 9.

     Since the assesable  value  is not known at the time of sale  and it is quite possible that it may not be known even at the time of filing monthly / quartely return, the unit has to resort to PROVISONAL ASSESMENT under Rule 7 of C. Excise Rules . Once the sale price data is obtained from the related buyer, the provisonal assessment can be finalised.