X, an SSI, is a marble processing unit. X does sandstone sawing i.e. converting sandtone blocks into slabs on a gangsaw.
Now converting Sandstone blocks into slabs amounts to manufacture and sandstone is also appearing in the tariff.
But in the tariff the rate of excise duty on sandstone is nil.
Now I am confused whether this sandstone sawing will be added while calculating the limit of Rs 400/150 lakhs.
Please guide.
Thanks.
Sheetal
Hello mam
As per notification 8/2003, excisable goods which are subject to NIL rate of duty or which is exempt from whole of the duty leviable thereon, shall not be included while computing the limit of Rs. 150 lacs, but it should be included while computing the limit of Rs. 400 lacs.
Regards
Sourav
You mean to say if
- process amounts to manufacture,
- goods are excisable,
- rate of duty on such excisable goods is NIL ( not exempted)
then it will NOT be counted for calculating the limit of 150 lacs.
Please confirm.
simply exemption is available only when it is excisable, if its not excisable no question of claiming SSI exemption.
if goods are excisable AND
-- rate of duty = NIL, or
-- exempted
it will not be counted while calculating the limit of Rs. 150 lacs because if you are already having an exemption, and if in the wake of SSI exemption it will be counted then you will not be able to enjoy the merit of being a SSI.
EX: X Ltd. is an SSI, it produces three products
X: rate of duty =nil
Y: exempted
Z: rate 8%
now if the value of clearances are as follows:
X: 80 lacs
Y: 50 lacs
Z: 90 lacs
option I:( NOT AS PER PROVISION) you are counting NIL rated and exempted goods for calculating amount of Rs. 150 lacs:
then your value of clearances will be Rs. 220 lacs, you will have to pay ED on 70 lacs
option II:(AS PER PROVISION) you are not counting NIL rated and exempted goods for calculating amount of Rs. 150 lacs:
then your value of clearances will be Rs. 90 lacs, which is within the threshold limit, and you can claim the exemptio under notification 8/2003
INFERENCE:
option I: you are paying ED on 70 lacs even when your goods are NIL rated and EXEMPTED.
option II: you are availing exemption on NIL rated and EXEMPTED goods as usual and you are getting extra benefit by not paying ED on Rs. 90 lacs
thankz
It will be included in computation of 4 crores and not in 1.5 crores.
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