| Originally posted by : rashmi |
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hiiii again bhushan !!!!!! :) ;) look m not very good at excise....Rather m a lil bad at it only but as far as i know excise becomes chargeable only if the value of goods cleared is 150 lacs or more in the current year and had exceeded 400 lacs in the previous year.....and as much as i can understand from ur discussions the value of almonds consumed is difficult to reach the limit as dey are just sprinkled on the icecream as toppings....but in case dey exceed the specified limit den congratulations !!!!!!! :) ur query is absolutely correct.... |
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Dear Rashmi,
You have raised a good point.I appreciate it very much.Thankyou for pointing it out.
However,the point that you talk of is the Notification No. 8/2003 CE dated 1-3-2003 as amended provides
FULL exemption from payment of duty to the small scale units upto the aggregate
value of clearance of Rs. 150 lakhs in a financial year. The salient features
of the exemption scheme are highlighted as below:
(i) The aggregate value of clearance of all excisable goods cleared for
home consumption by a manufacturer from one or more factories, or
from a factory by one or more manufacturers, does not exceed
Rs.400 lakhs in the preceding financial year.
(ii) The manufacturer should not avail the Cenvat credit of duty paid
on inputs.
(iii) The manufacturer should not utilize the Cenvat credit of duty paid
on capital goods during the period of availment of the said
exemption.
(iv) The exemption is not applicable for specified goods bearing a brand
name or trade name whether registered or not, of another person.
The brand name restriction is, however, not applicable to the
following cases:
Goods cleared as Original Equipments (O.E) or parts of any
machinery/ equipment/appliances cleared for use as O.E.
Goods bearing the brand name or trade name of the Khadi and
Village Industries Commission or a State Khadi and Village
Industry Board or the National Small Industries Corporation or
a State Small Industries Development Corporation or State Small
Industries Corporation.
Ø Goods manufactured in a factory located in rural area (the area
comprised in a village as defined in the land revenue records).
Ø Account books, registers, writing pads and file folders.
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From the above notification points,one can know that
The notification refers to "Aggregate clearances".Moreover the company must be a Small Scale Unit.
From Bhushan's query,the case seems to point elsewhere.
In the exam,if the points which were given earlier are written it is more than enough.Maybe you can mention this minor-part as an assumption and quote this notification,it would do good.(Even then the examiner won't care much because his intent is to test the knowledge regarding captive consumption and not be picky about some rare and extraneous exception).
Also, in the exam if you write,the roasted almonds for home consumption are covered by exemption under this notification,so no need to bother,for a 7 marks or 10 marks question then Im sure, the examiner will not take it in good jest.He expects something more and you have discussed only the exception.The main concept must be tackled.
CAclubindia
