9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

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SSIunitsExemptionundercentralexcise
PoornimaMadhava(../profile.asp?member_id=198435)
on24February2015

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SSIunits&Notificationno.8/2003CE
a.SSIstandsforSmallScaleIndustries.Notificationno.8/2003providesrelaxationtoSSIunitsfromcentral
excisedutysubjecttocertainconditions.
b.Thus,amanufacturerbeinganSSIunitiseligibleforexemptionfromexcisedutyuptoaturnoverof150
lacs (exemption limit) during the current year provided the turnover (aggregate clearances) in the previous
yeardoesnotexceed400lacs.Toreiterate,theexemptionbenefitwouldbeavailableeveniftheturnover
inthepreviousyearisequalto400lacs.
c.Manufacturerscanmakeuseoftheexemptionintheoneofthefollowingmanners:
i.Claimexemptionuptoaturnoverof150lacs,payexciseduty(ED)overthislimitandavailcenvatcredit
(CC)oninputsoncethelimitexceeds.
ii.Withoutseekingexemption,payfulldutyandclaimcenvatcreditoninputsfromthebeginning.

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Howisturnover/aggregateclearancesof400lacsforpreviousyeardetermined?
Typicalformatforcomputation:
Particulars

Goodsclearedwithpaymentofexciseduty

ADD(ifnotincludedintheabove):

Exemptedturnover(otherthanSSIorJobworknotification)*

Goodsmanufacturedinruralareawithbrandnameofothers

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ExporttoNepalandBhutan

Captiveconsumption(iffinalproductisexempt)

LESS(ifincludedintheabove):

Exportturnover

ClearancestoEOU/SEZ/EHTP/STP/UN**

Nonexcisablegoods

Goodsmanufacturedwithbrandnameofothersonpaymentofduty

Jobworku/nno.214/86,83/94,84/94etc

ExportunderbondthroughMerchantExporter

BALANCE:TURNOVER/AGGREGATECLEARANCES()

*SSInotificationno.8/2003,Jobworknotificationno.214/86,83/94,84/94etc
**EOU:100%ExportOrientedUnitSEZ:SpecialEconomicZoneEHTP:ElectronicHardwareTechnology
ParkSTP:SoftwareTechnologyParkUN:UnitedNations
SpecificexclusionfromSSIexemption

SSIexemptionisnotapplicabletothemanufacturersofthefollowingproducts:
a.Tea/Coffee
b.Icecream
c.Panmasala/Unbrandedchewingtobacco
d.Sandalwoodoil
e.Matches
f.Photographicplates&films
g.Stainlesssteel&aluminiumcircles
h.Refinedcopper&copperalloys

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i.Tractors,motorvehicles,cars,chassis,motorcycles&mopeds
j.Watches(exceptwhereretailsalepriceis500perpiece)
k.Revolvers,pistols,firearms
l.Travelsetsforpersonaltoilet
m.Ceramictilesotherthanthosesubjectedtotheprocessofprinting,decorating
n.PowerdrivenpumpsforwaternotconformingBureauofIndianStandards(BIS)
o.Productscoveredundercompoundedlevyscheme
Declarationtobefiledonreachingspecifiedlimit
a.SSIunitswhoseturnoverismorethanspecifiedlimit(atpresent90lacs)butlessthanexemptionlimit(i.e.
150lacs)havetofileadeclarationintheprescribedform.
b.Suchdeclarationhastobefiledonlyonceinthelifetimeoftheassessee(andnoteveryyear).
Registration
SSI units whose turnover is 150 lacs are exempted from registration. Once the exemption limit exceeds,
theunitshallcompulsorilygetregisteredwiththeCentralExciseauthorities.
Duedateforpayment
a.Oncetheturnoverexceedstheexemptionlimit,SSIunitsareliabletopayED.
b.Duedateforpaymentofdutyis5thofthefollowingmonthfromtheendofrelevantquarter(6thincaseof
epayment)forclearancesduringAprFeb,and31stMarchforclearancesduringMar.
c.SSIunits(whetherclaimingbenefitofexemptionornot)areliabletopayEDonquarterlybasis.Further,this
relaxationisavailablefortheentirefinancialyeareveniftheSSIunitcrossesthelimitof400lacsduringthe
currentyear.
Filingofreturn

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AssesseesarerequiredtofilequarterlyreturninER3on/before10thofthefollowingmonthfromtheendof
therelevantquarter.Forexample,ifthereturnpertainstoIQtr(AprJun),theduedateforfilingER3wouldbe
10thJuly.
Cenvatcreditoncapitalgoods
SSIunitscanclaimcenvat credit on capital goods up to 100% in the year receipt of such goods (unlike
OtherthanSSIunitswhoareallowed50%creditduringtheyearofreceipt).
Jobwork
Jobworkerisexemptfrombasicexcisedutyifthesupplierofrawmaterialhasundertakenpaymentofduty
u/nno.214/86(otherwise,jobworkerbeingmanufacturerisliabletopayED).
Audit
AuditofSSIunitsisconductedoncein25years:
i.Dutyrangebetween10100lacs:Oncein2years
ii.Dutyrange<10lacs:Oncein5yrs
SSIunitshavingmorethanoneunit
WheretheSSIunithasmorethanoneunitorplaceofbusiness,theturnoverof400lacsshallbecalculated
clubbingtheturnoverofalltheunits.
Goodsmanufacturedunderbrandnameofothers
Where goods are manufactured under brand name of others, the inclusion of turnover under aggregate
clearanceslimitandexemptionlimitareasfollows:

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However,thefollowingtransactionscomeunderthepurviewofexemptionlimiteventhoughthesegoodsare
manufacturedunderbrandnameofothers.Hencethefollowingareincludedintheturnoverof400lacs:
1.Componentsorpartsofanymachinery/equipment/appliancesclearedforuseasoriginalequipmentinthe
manufactureofsaidmachinery/equipment
2.GoodsbearingbrandortradenameofKhadi&VillageIndustriesCommission
3.GoodsbearingbrandnameofStateKhadi&VillageIndustryBoard
4.GoodsbearingbrandnameofNationalSmallIndustriesCorporation
5. Goods bearing brand name of Small Scale Industries Development Corporation or State Small Industries
Corporation
6.Goodsmanufacturedinafactorylocatedinruralarea
7. Goods like account books, registers, writing pads, file folders falling under heading 4820 or 4821 of I
scheduleofCentralExciseTariffAct,1985,manufacturedinafactory
8.Goodsmanufacturedunderthebrandortradenameofothersifthesegoodsareinthenatureofpacking
materials(viz.printedcartonsofpaperorpaperboard,metalcontainers,HDPEwovensacks,adhesivetapes,
stickers,PPcaps,crowncorks,metallabels)

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9.Printedlaminatedrollsbearingbrandnameofothers
10.Plasticbottles&plasticcontainersusedaspackingmaterial
Transactionsnotregardedasmanufactureunderbrandnameofothers:
a. Affixing brand on school/securityagency/company/hotel readymade garments is not branding of
readymade garment and such garments are eligible for SSI exemption (Circular No.947/8/2011CX dated
21/06/2011)
b.BrandnamewhenexclusivelyassignedtoothersforusewithinaparticularterritorialunitSSIexemption
available(SadanaFoodsVsCCE2012(284)ELT257(TriBang)

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