Computation of aggregate value of clearances for calculating the eligibility limit for availing Small Scale Industries Exemption Scheme for the financial year 2003-04 - Central Excise - 733/49/2003

CIR NO.733/49/2003-CX, DT. 06/08/2003 Computation of aggregate value of clearances for calculating the eligibility limit for availing Small Scale Industries Exemption Scheme for the financial year 2003-04 I am directed to state that doubts have arisen in field formations regarding determination of the aggregate value of clearances of all excisable goods for home consumption in the preceding financial year 2002-2003 to decide the eligibility for availing the benefit of excise duty exemption under Notification No.8/2003-Central Excise, and Notification No.9/2003-Central Excise both dated 1st March, 2003 for the financial year 2003-04. The issue is, for availing the benefit of exemption under notifications No.8/2003-Central Excise and No.9/2003-Central Excise both dated 1st March, 2003 for the financial year 2003-04, whether the aggregate value of clearances of all excisable goods for home consumption for the financial year 2002-03 i.e. the previous financial year, shall include the value of exempted goods (excluding exports) or not. 2. Your attention is invited to explanatory notes to the Finance Bill 2003, contained in Budget Bulletin 2003, under the Small Scale Industry Exemption Scheme. It has been clarified that value of exempted goods will be included (excluding exports) for calculating the eligibility limit of Rs. 3 crores for eligibility under SSI Exemption w.e.f. 1.4.2003. Further, for bringing into effect this change, the notifications No.8/2003-Central Excise and No.9/2003-Central Excise dated 1.3.2003 have been issued and these notifications have been made effective from 1.4.2003. Your attention is also invited to JS(TRU) D.O.F.No.334/1/2003-TRU, dated 28th February, 2003 wherein para 8.2 of the letter states that the value of exempted goods will be included (excluding exports) for calculating the eligibility limit of Rs. 3 crores for eligibility under SSI Exemption w.e.f. 1.4.2003. 3. Accordingly, it is reiterated that for availing Small Scale Industry Exemption Scheme Exemption under notifications No.8/2003-Central Excise and No.9/2003-Central Excise, both dated 1.3.2003, for the financial year 2003-04 the value of clearances for calculating the limit of Rs.3 crores for the preceding financial year 2002-03 includes the value of exempted goods (excluding exports) also. 4. The field formations may suitably be informed. 5. Receipt of this Circular may please be acknowledged. 6. Hindi version will follow. F.No. 201/43/2003-CX.6