Central Excise Exemption of ₹ 150 Lakhs

[sachin shilamkar]

We are importer of essential oil and registered with excise as dealer. Our annual turnover is 50 Cr from trading business. Now we want to get into manufacturing so we want to know can we avail the excise exemption of ₹ 1.50 Cr given to manufacturer who are SSI Units (Our investment in machinery is less than 1 Cr ).

[MUKUND THAKKAR]

yes,

you are eligible for getting the exemption of 1.50cr as a manufacturer .Trading is the different activity . Turn over of the trading activity is not considering in your manufacturing exemption limit.

[KASTURI SETHI]

I endorse the views of Sh.Mukund Thakkar, Sir.

[CSSANJAY MALHOTRA]

I too endorse views of Sh. Mukund / Sh. Kastur ji.

AI Summary

Excise exemption eligibility: manufacturers meeting small-scale investment criteria can claim exemption regardless of trading turnover.
A dealer-registered importer commencing manufacturing with plant and machinery investment below the small-scale threshold is eligible for the central excise exemption of Rs. 1.50 Cr; turnover from separate trading activity is not considered when determining entitlement to the manufacturing exemption.