General Exemption

[DEEPAK SHARMA]

Sir,

Either General Exemption of 1.5 Crore is available on E-Rickshaw or not ?

[KASTURI SETHI]

Yes. SSI exemption available. (Heading 8711.)

[YAGAY andSUN]

Provided you fullfill the criterion as prescribed in term of MSME/SSI' Definition.

[DEEPAK SHARMA]

Sir I am of the view that e-rickshaw falling under CETSH 87039010

please elaborate the condition if SSI exemption is available on this products

[KASTURI SETHI]

No. E-Rickshaw is not covered under sub-heading No.8703 1090. No SSI exemption is admissible to the goods falling under 8703 1090. However, if you are sure that you are manufacturing the goods falling under sub-heading no.8703 1090, then do not call it E-Rickshaw.

[DEEPAK SHARMA]

Sir,

Please write us correct chapter heading on which e-rickshaw falling under CETA

[Ganeshan Kalyani]

Refer Kasturi Sir reply dated 23.12.2015

[DEEPAK SHARMA]

Sir,

is there any more clarification about the Chapter heading of e-rickshaw. Department is planning to prepare SCN for the clearance made under SSI limit .

please advice us the CETSH of e-rickshaw

[KASTURI SETHI]

Sh.Deepak Sharma ji,

If the department is bent upon to issue SCN, the assessee has to face the rigours of litigation. I shall study more on the issue and let you know more information soon. I have seen so many lame SCNs.

After perusing SCN, I can predict the fate of the same.Let me see when it is issued.

AI Summary

SSI exemption for e rickshaws questioned; product classification determines exemption eligibility and litigation risk. Eligibility for the SSI/MSME general exemption for e rickshaws depends on tariff classification: one practitioner treats the product as falling under a motor vehicle heading that attracts exemption, while another identifies a different subheading that disqualifies the goods from SSI relief; misclassification may prompt a departmental show cause notice and litigation risk.