TMI BlogSSI Exemption for manufacturers having clearances not exceeding rupees three crores in the preceding financial year and not availing Modvat scheme upto clearances of Rs. 1 croreX X X X Extracts X X X X X X X X Extracts X X X X ..... the aggregate of - (a) the duty of excise specified thereon in the First Schedule to the Central Excise Tariff Act, 1985( 5 of 1986) ; and (b) the special duty of excise specified thereon in the Second Schedule to the said Central Excise Tariff Act, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table. TABLE Sl No Value of clearances Rate of duty (1) (2) (3) 1 First clearances upto an aggregate value not exceeding fifty lakh rupees made on or after the 1st day of April in any financial year Nil 2 Clearances upto an aggregate value not exceeding fifty lakh rupees immediately following the clearances specified against Sl. No. 1 above during the financial year Five percent ad valorem 3. All clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods. Nil 2. The exemption contained in this notification shall apply only subject to the following conditions, namely :- 1 [Omitted (ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a factory by one or more manufacturers, does not exceed rupees three hundred lakhs in the preceding financial year: 3. For the purpose of determining the aggregate value of clearances for home consumption, the following clearances shall not be taken into account, namely:- (a) clearances, which are exempt from the whole of the excise duty leviable thereon (other than an exemption based on quantity or value of clearances) under any other notification or on which no excise duty is payable for any other reason; (b) clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption in terms of paragraph 4 below; (c) clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods. (d) clearances of strips of plastics used within the factory of production for weaving of fabrics or for manufacture of sacks or bags made of polymers of ethylene or propylene. 4. The exemption contained in this notification shall not apply to the specified goods bearing a brand name or trade name, whether registered or not, of another person, except in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to in sub-clause (i), the value as determined in accordance with the provisions of section 4 of the Central Excise Act, 1944 (1 of 1944), or the tariff value fixed under section 3 of the said Act; (D) in the determination of the value of clearances of Chinaware or Porcelainware or both, where a manufacturer gets Chinaware or Porcelainware or both fired in a kiln belonging to or maintained by a Pottery Development Centre run by the Central Government or a State Government or by the Khadi and Village Industries Commission, the value of the Chinaware or Porcelainware or both, belonging to the said manufacturer and fired in such a kiln shall be taken into account; (E) where the specified goods are manufactured in a factory belonging to or maintained by the Central Government or by a State Government, or by a State Industries Corporation, or by a State Small Industries Corporation or by the Khadi and Village Industries Commission, then the value of excisable goods cleared from such factory alone shall be taken into account; (F) ""normal rate of duty"" means the aggregate of duty of excise specified in the First Schedule to the said Central Excise Tariff Act and the specia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r heading Nos. 51.10 or 51.11) and under 51.12; (xii) all goods falling under Chapter 52 of the said Schedule other than goods falling under Heading No. 52.04 and cotton yarn not containing synthetic staple fibre, falling under heading No 52.05 or 52.06; (xiii) all goods falling under Chapter 53 of the said Schedule except goods falling under heading Nos. 53.01, 53.02, 53.04, 53.05,53.08 (other than goods falling under sub-heading No. 5308.14), 53.11(other than woven fabrics of ramie); (xiv) all goods falling under Chapter 54 of the said Schedule except goods falling under heading No. 54.01; (xv) all goods falling under Chapter 55 of the said Schedule except goods falling under heading Nos. 55.05, 55.08 and shoddy yarn manufactured from used or new rags falling under heading Nos. 55.09 or 55.10; (xvi) all goods falling under Chapter 56 of the said Schedule except goods falling under heading Nos. 56.01, 56.02, 56.03, 56.04, 56.05 (other than of man-made filaments), 56.07 (other than of jute), 56.08 and 56.09; (xvii) all goods falling under Chapter 57 of the said Schedule; (xviii)all goods falling under Chapter 58 of the said Schedule except goods falling under heading Nos. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inery and parts and accessories thereof falling under Chapters 84,85 and 90 (xxviii)all goods falling under heading Nos 85.21, 85.28; (xxix) all goods falling under heading Nos 87.01, 87.02, 87.03, 87.04, 87.05, 87.06 and 87.11 [other than powered cycles and powered cycle rickshaw (powered cycle or powered rickshaw means a mechanically propelled cycle or, as the case may be, mechanically propelled cycle rickshaw, which may also be peddled, if any necessity arises for so doing); (xxx) all goods falling under heading Nos. 91.01 or 91.02; (xxxi) all goods falling under sub-heading Nos. 9605.10. ************************** Note : 1.Above (i), Illustration I, Illustration II, Illustration III has been Omitted vide Notification No. 16/1999 dated 31/3/1999 and for the words also has the words has shall be Substituted 2. Illustration in condition (ii) has been Omitted vide Notification No. 16/1999 dated 31/3/1999 before Omission it was read as, "ILLUSTRATION I: A manufacturer who has exercised his option to pay the normal duty on any goods during a financial year makes clearances having an aggregate value of rupees twenty lakhs. He thereafter wants to avail the exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X
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