exemption limit

[AFSAR UDDIN]

I am a SSI unit I am going to set up a eva sole factory , whether from the first sale excise is chargable or not.If not what is the exemption limit.

[Mahir S]

The exemption limit for SSI from payment of excise duty is ₹ 150 Lakhs rupess for clearances made on or after the 1st day of April in any financial year.

If you avail cenvat credit on the inputs received in your factory, then duty is to be paid from the first clearances.

Please study central excise Notification No. 08/2003 C.E. dated 01.03.2003 for further clarification relating to SSI exemption limit for units not availing CENVAT credit.

AI Summary

Small-scale industrial units get excise duty exemption up to 150 lakhs; review Notification No. 08/2003 for details. A small-scale industrial unit inquired about the applicability of excise duty on their EVA sole factory's initial sales and the relevant exemption limit. The response clarified that the exemption limit for SSI units from excise duty is 150 lakhs for clearances made from April 1st of any financial year. If the unit avails CENVAT credit on inputs, excise duty must be paid from the first clearance. The responder advised reviewing Central Excise Notification No. 08/2003 C.E., dated March 1, 2003, for more details on the exemption for units not availing CENVAT credit.