TMI BlogSSI Units - BasicsX X X X Extracts X X X X X X X X Extracts X X X X ..... n 2007-08. However SSI units have the following options of exemptions: - (a) A manufacturer can avail full exemption upto Rs.150 lakhs and pay normal duty thereafter and can avail Cenvat credit on inputs after crossing exemption limit of turnover of Rs.150 lakhs in the financial year, or (b) A manufacturer has the option not to avail the exemption and instead pay the normal rate of duty and avail Cenvat credit. Option (b) is available any time during the year, but this option once availed cannot be withdrawn during the financial year. While availing this option the manufacturer shall inform in writing to the Assistant /Deputy Commissioner of Central Excise with a copy to the Superintendent of Central Excise giving the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. However they have to maintain their own records (and not statutory records) of manufacture and clearance, to prove their turnover is less than Rs. 150 lakhs per year. III. Exemption from Declaration: - Small Units whose turnover is below Rs. 90 lakhs (specified limit) per annum do not have to file any declaration. While others have to file declaration in prescribed form with Assistant Commissioner, central excise and obtain a dated acknowledgement once in lifetime of assessee. They will not be given any ECC code number as it need not be mentioned in the invoice or challan. IV. Exemption in case goods manufactured without aid of power (Notification no.167/86): - If no process in or in relation to manufacture of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.198/87). Note: (A) Mere payment of full duty does not mean that he has OPTED not to avail SSI exemption. Thus assessee has to inform the department that he is not availing exemption and opt to pay full duty. Example: It cannot be said that assessee has opted out not to avail SSI exemption- 1. If due to clerical mistake or due to sheer ignorance that such option exists he pays the full duty, or 2. If he is not sure whether he has crossed the turnover limit of 4 crores in the previous year and pay full duty on few clearances, or 3. Subsequently he starts manufacturing goods with his own brand name he can avail exemption on the goods manufactured on its own name. (B) Manufacturer manufacturing various products is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e factory premises, irrespective of whoever may be the manufacturer with reference to the factory. 2. Clearances effected from one or more factories of the same manufacturer: Clearances effected from one or more factories of the same manufacturer will be clubbed for determining the value of clearances. It is also essential that the factories must be of the same manufacturers and if they are not, clearances cannot be clubbed even if they are relatives, provided both of them have separate capital and plant machinery and both are managed separately by the respective owners. 3. Change of ownership during the year if ownership of factory changes during the year, clearances of previous owner as well as new owner during the year w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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