SSI unit selling scrap

Jaydeep (Practice) (34 Points)

31 January 2009  

Hi ,our client has an auto ancilliary(SSI) doing job work of their client ( auto components spare parts) .The main manufacturer provide the unfinished item to the job worker  & after finishing the job the anciliary returned the same to the manufacturer. The turnover relating to job work is around 12 lacs p.a . The scrap generated are sold in the open market in cash. The SSI unit is not regd . in excise . IS SSi unit is liable to pay any excise duty on scrap sale, although turnover of scrap sale is around 5 lacs p.a? Pl any one guide me.

The limit for SSI regd is 150 lacs