Indirect export whether exempted for ssi limit

CA Sheetal Surana (Owner at Sheetal Surana & Associates Snr Marketing coordinator(Visa) Associate(PWC))   (245 Points)

08 December 2011  

Hello,

Facts

X ltd (not registered under excise) is converting marble blocks to slabs and selling the slabs to Y ltd.( not registered under excise). Y ltd after does calibration, convert slabs to tiles and after polishing the tiles sells it to Z ltd ( not registered under excise). Z ltd pack the tiles in wooden pallets and export them. All the three entities are SSI units.

Query

Y ltd if termed as supporting manufacturer for exporter Z ltd and the name of supporting manufacturer is indicated in the shipping bill of the exporter, then whether the SSI exemption of 1.5 cr is available to Y ltd for its sale to Z ltd(exporter not registered under excise)

Please help.

Regards

CA Sheetal Surana