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SSI EXEMPTION MULTIPLE UNITS OF SAME MANUFACTURER

Central Excise - By: - Mr.M. GOVINDARAJAN - Dated:- 16-9-2015 - Notification 1/93-CE, dated 28.02.1993 was published for exemption to first clearance of specified goods. This notification has been issued in order to encourage small scale industries. According to this notification exemption is provided to first clearance of specified goods up to the value of ₹ 30 lakhs and concessional duty thereafter in case of SSI units having a total clearances not exceeding ₹ 2 crores in the prec .....

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d in the said para 1, subject to the condition that such manufacturer shall pay duty at the rate applicable but for the above said exemption on all subsequent clearances of specified goods made after availing such option, in a financial year in which such date of option falls. The issue to be discussed in this article whether SSI exemption is available to the multiple units of same manufacturer with reference to decided case law. In Commissioner of Customs & Central Excise, Meerut - I V. Jan .....

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manufacturing activities. The respondent primarily manufactures articles of wood. A declaration was filed by the respondent on 01.04.1996 opting to pay full rate of excise duty for the unit in Sitapur and opted to avail exemption benefit under Notification 1/93-CE, dated 28.02.1993 for the unit at Dehradun. The Revenue issued a show cause notice to the respondent for recovery of excise duty. The ground of demand is that the respondent had opted to pya full rate of excise duty in relation the Uni .....

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facturer who has chosen to keep out of the exemption, therefore both the units would be kept out of the exemption; It is not permissible that a manufacturer exercises his exemption for one unit and chooses to keep out of it as regards another unit; The plain language of the amendment which talks about a manufacturer exercising an option and not a unit or a factory exercising this option; While forgoing exemption in respect of unit at Sitapur the manufacturer was under a statutory obligation to p .....

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xemptions are for the benefit of small scale industries and, therefore, an interpretation should not come which should be detrimental to the small scale industries; The High Court analyzed the notification. The High Court found that the purpose of the notification is obviously for the benefit of small scale industries. The limits to those exemptions, the checks and balances in the notification are for the purposes that only the deserving small scale industries get the benefit out of the notifica .....

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