Excise registration exemption for Non SSI domestic turnover, Central Excise

[Shab K]

There is a website that states that1. Non-SSI manufacturing units are exempted from Excise registration if their domestic turnover is less than 50Lacks.2. SSI manufacturing units are exempted from Excise registration if their domestic turnover is less than 100Lacks.Export turnover will not be counted for Excise limit of 150 lacks.I am able to find govt. websites that clearly talk about SSI (Non Cenvat) scheme where an SSI unit has option to 'not' register for Excise till his domestic (home) turnover is less then 100Lacks, irrespective of export turnover. Some websites also quote Notification number 8/99 and 9/99 for this.But I am not able to find any govt. website that gives details (notification number) about excise exemption for Non-SSI for domestic turnover of less then 50Lacks.Can someone please give their valuable advise on this matter (with circular / notification details if possible).Sincerely thanking you in advance!

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

The notification No. 8/99 and 9/99 (Tariff) are available in www.taxmanagementindia.com i.e., in this site itself. You can view the same from this site. Go through them and if any further doubt is there please inform.

[Shab K]

Thank you for your response.

Notification 8/99 and 9/99 talk about SSI only. I need Notifications / Circular that talks about NON-SSI units. Can you please guide in that direction.

[Naveed S]

Sir,

refer notification no. 08/2003 CE dated 01/03/2003, based on which you shall get an idea about SSI/Non-SSI units.

[Rajagopalan Ranganathan]

Sir,

As per Notification No. 8/2003-CE dated 13.2003 as amended excisable goods manufactured by Small Scale Industries are exempt up tp a value of clearance of ₹ 150 lakhs in a financial year. If value of clearance exceeds this limit in the same financial year then you have to pay duty on the value of clearances exceeding this limit. SSI exemption is available to a manufacturer during next financial year provided that value of clearance during previous financial year did not exceed Rs, 400 lakhs. Otherwise you have to pay duty on the first clearance effected from 1 April of the next financial year.

I understand that there is no classification of manufacturing industries as non-SSI industry under Central Excise Act, 1944. All industries/manufacturers whose total clearance during previous financial year exceeds ₹ 400 lakhs are non-SSI industries/manufacturers. However there are separate exemption Notifications in respect of industries/manufacturers who are not qualified as SSI. For example please refer to Notification No. 1/2011- CE dated 1.3.2011 as amended, 2/2011-CE dated 1.3.2011 as amended, 12/2012-CE dated 17.3.2012 etc.

[Shab K]

Thank you very much for your responses. But my question still remains unanswered.

@Naveed S : Notification 8/2003 talks only about SSI. There is no mention of Non-SSI.

@Rajagopalan Ranganathan : This statement "All industries/manufacturers whose total clearance during previous financial year exceeds ₹ 400 lakhs are non-SSI industries/manufacturers" is not fully correct.

Everyone who is Not registered under SSI is Non-SSI.

A manufacturing unit whose turnover is 10Lakhs, 50lakhs, 2crore, 10crore in a FY can be a Non-SSI. Registration under SSI is not mandatory.

Your mentioned notifications (1/2011, etc) do not talk about the 50 Lakh domestic turnover exemption for Non-SSI.

But I am not able to find any website that gives details (notification number) about excise exemption for Non-SSI for domestic turnover of less then 50Lakhs.

[Rajagopalan Ranganathan]

Sir,

Please see Annexure to Notification No. 8/2003-CE dated 1.3.2003 as amended (SSI Notification). Almost all the goods except a few enumerated in the schedule to Central Excise Tariff Act, 1985 are included in the Notification. Therefore up to 150 lakhs all excisable goods are under SSI ambit. When the turnover exceeds 150 lakhs then the same commodity will become Non-SSI. Therefore your presumption that separate exemption Notification is to be issued for various slabs as indicated by you is not correct. Actually the government want to reduce the number of exemption Notifications to barest minimum.

[Shab K]

@Rajagopalan Ranganathan

Dear Sir,

SSI has nothing to do with slabs. And I am not talking about specific commodities.

A company can "voluntarily" register under SSI, if they fulfill its requirements, and take benefits that government offers to SSI registered manufacturing units.

Quoting from business.gov.in : "A small scale industry (SSI) is an industrial undertaking in which the investment in fixed assets in plant and machinery,whether held on ownership term or on lease or hire purchase, does not exceed Rs. 1Crore." .... It has nothing to do with the turnover of the company.

A company can have turnover of 5crores and still be SSI if its assets are less than 1crore. Companies register under SSI to get benefits like loans, etc.

So, my question is still the same :

I need details (notification number) about "excise registration exemption" for Non-SSI manufacturing units for domestic turnover (home consumption) of less then 50Lacks.

Can you please help me with this.