Clarification of Excisable Item

[Asked by Guest]

Dear All, We are into manufacturing of Ice Gel Packs which are mainly

used as temperature controllers in transportation of vaccines. We are

paying CST and VAT but we want to know whether we need to register

under Excise Department if we crosses 1.5 cr though we are below that

mark we want to know about it for future references. Please help me

[YAGAY and SUN]

Dear Katakam Srikanth,

Even before crossing the threshold limit of INR 1.50 crore, you may apply for C.E. Registration, if you want to pay the duty on finished goods and avail the benefit of availment of CENVAT credit. Availing exemption under SSI unit is an option.

Regards,

Pradeep Khatri

Founder - YAGAY and SUN

(Management, Business, Indirect Tax Consultants)

AI Summary

Central Excise registration can be taken voluntarily to pay duty and claim CENVAT credit before threshold is met.
The manufacturer may obtain Central Excise registration before reaching the turnover threshold to pay excise duty on finished goods and to avail CENVAT credit; alternatively, the manufacturer may continue under SSI/exemption treatment and claim exemption from excise subject to applicable conditions.