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TMI BlogExemption of Rs. 1.5 crore from excise dutyX X X X Extracts X X X X X X X X Extracts X X X X ..... Exemption of Rs. 1.5 crore from excise duty X X X X Extracts X X X X X X X X Extracts X X X X ..... ores upto Feb. 2011. Will it be liable to central excise on any sales done after that as the sales upto date exceeds Rs. 1.5 crores. or it is so that the exemption of 1.5 crores will be available on sales done after levy of duty i.e. 01.03.2011. Suppose it does further sale of Rs. 25 lacs from 01.03.2011 to 31.03.2011. Will it be liable to pay excise duty on this Rs. 25 lacs or it will be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to exemption upto Rs. 1.5 crores on this sale. Pls. clarify Reply By vishnu mohandas: The Reply: In my view If the exemption is 1.5 crores you will be liable to pay excise duty on the balance of 60+25 lacs Reply By Radha Arun: The Reply: In computing Rs 1.5 crores, the exempted goods are excluded. However pl note that there is an eligibility condition for the SSI exemption, that is, the prev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious financial year's turnover of the manufacturer should not exceed Rs 4 crores. In this 4 crores, exempted goods are included. Reply By Santosh Kumar: The Reply: Dear sir, aggregate value of clearances of all excisable goods in preceding financial year should be less than Rs. 4 crore then exemption will be available. Now, for the month of March 2011, the year 2009-10 is to be seen. If the agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regate value of clearances is less than Rs. 4 crore in year 2009-10 then exemption of 1.5 crore is available. For computing these 1.5 crore, only dutiable goods is to be seen. This limit of Rs. 1.5 crore will be available for March 2011 as the goods cleared prior to March 2011 were exempted and will not be considered in calculating the same. Thus, the exemption is available in March 2011 also. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply By Sathish Kamath: The Reply: Another view is that the assessee is eligible for exemption of Rs.12.50 lakhs only for the month of March, 2011 because the exemption of Rs.1.50 crores is for the full year. Accordingly, if the taxable turnover exceeds Rs.12.50 lakhs for the month of March, 2011 then he is liable to Excise Duty on the excess turnover of Rs.12.50 lakhs. Please comment Reply By Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dha Arun: The Reply: I beg to disagree with Mr Satish Kamath.The manner of calculating Rs 1.5 crores is specified in paragraph 3 of the notification itself (notification 8/2003-CE). It does not include exempted goods. However, to be eligible for th 1.5 crore exemption, one should not have crossed Rs 4 crores in the previous financial year. This figure of Rs 4 crores is calculated by including ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... empted gods. This too is specified in the notification, in paragraph 3A. X X X X Extracts X X X X X X X X Extracts X X X X
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