VALUE OF TRADED GOODS- WHETHER TO BE INCLUDED IN SSI LIMIT.

[VINOD KUMAR]

DEAR EXPERTS. GOOD AFTERNOON. SIR, whether the value of traded goods (similar to own manufacturered goods) is to be included in the SSI threshold of Rs. 150 Lacs/400 Lacs. Please reply. Thanks and regards.

[YAGAY and SUN]

Dear Dipak,

In our opinion, there is no requirement to include the turnover of such goods which are traded goods in the value of manufactured goods by the SSI Units.

In Rajdoot Paints v CCE (2004) 171 ELT 230 (CESTAT)= 2004 (1) TMI 534 - CESTAT, new delhi , assessee was manufacturing goods under his own brand name. In addition, he was purchasing goods under his brand name and selling them as trader. It was rightly held that value of traded goods canot be considered for purpose of SSI exemption limit.

Further, In CCE v CMS Computers 2005 (182) ELT 20 (SC 3 Member bench) = 2005 (2) TMI 144 - SUPREME COURT OF INDIA also, it was held that value of traded items is not required to be added. In this matter, bought out items were supplied to buyer along with own manufactured goods on optional basis.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Value of traded goods excluded from SSI turnover calculation, so only manufactured output counts for SSI eligibility.
Turnover from goods purchased for resale (traded or bought-out items) is not to be aggregated with the value of goods manufactured by an SSI unit when computing the SSI threshold; only the value of the assessee's manufactured output counts toward the SSI exemption limit, and traded goods sold under the same brand or alongside manufactured products are excluded from manufactured-goods turnover.