SSI Exemption - Determination of Turnover of the previous year of 4 crores

[Rama Krishana]

As per the Paragraph no. 3A of the Notification no. 8/2003 CE dated 1.3.2003 for the purpose of Calculation of Rs. four hundred lakhs (4 crores) of the previous year, certain amount shall be excluded. Other than excluded items, all turnover of excisable goods shall be included.

My query is related to the term 'excisable goods' used in the SSI exemption notification above.

As per Section 2(d)of the Central Excise Act, 1944, (d) 'excisable goods' means goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)as being subject to a duty of excise and includes salt;

Now my query is whether the value / turnover of the goods where Goods are specified in the Tariff itself with empty tariff rate (e.g. Goods falling under Chapter 12 of CETA) and with Nil tariff rate (e.g.heading 53.01 of CETA) are 'excisable goods' as being Subject to duty of excise.

Because if these are 'excisable goods', the value shall be included in the turnover of the previous year and if these are not 'excisable goods', the value shall not be included in computing the limit of 4 crores.

I have no doubt that goods exempted under a notification are 'excisable goods' and are liable to be included as above.

But the doubt arises in respect of goods where tariff rate itself is empty or tariff rate itself is Nil.

AI Summary

Debate on Whether Nil Tariff Goods Count as 'Excisable' for SSI Exemption Under Central Excise Act, 1944 A discussion on a forum revolves around the interpretation of 'excisable goods' under the Central Excise Act, 1944, particularly focusing on goods with a Nil or empty tariff rate. The query questions whether such goods should be included in the turnover calculation for SSI exemption under Notification No. 8/2003. Various experts argue that goods listed in the Central Excise Tariff Act, even with Nil or blank rates, are considered 'excisable' due to their inclusion in the tariff schedule. The consensus suggests that these goods should be included in turnover calculations unless specifically excluded. The debate highlights differing interpretations of legal definitions and the impact of tariff rates on excisability.