Availment of SSI exemption for exempted goods

[VINOD KUMAR]

GOOD MORNING DEAR EXPERTS. extracts from notification no. 08/2003-CE. 'Provided further that exemption contained in this notification shall not apply to goods which are chargeable to nil rate of duty or are exempt from the whole of the duty of excise leviable thereon.'In the light of above proviso, will ssi benefit will be available to goods which are chargeable to 2% duty videnotf. no. 01/2011-ce as these are exempted goods as per CCR 2004.If SSI is available then wont it will amount to double benefit of SSI exemption and only 2% duty. PPlease reply. Thanks and regards.

AI Summary

Clarification on SSI exemption: Goods with 2% duty under Notification No. 01/2011-CE can still qualify for SSI benefits. A participant inquired about the applicability of Small Scale Industries (SSI) exemption on goods subject to a 2% duty under Notification No. 01/2011-CE, questioning if this would result in a double benefit alongside the SSI exemption. An expert clarified that goods charged at a 2% duty are considered exempt for credit purposes. SSI exemption is provided under Notification No. 08/2003-CE, which allows a nil duty rate up to a clearance of 150 lakhs, while the 2% duty applies from the first clearance. The assessee can choose the most advantageous notification, thus making them eligible for the SSI exemption.