Loan Licencee scheme

[Asked by Guest]

If it is possible to clear goods without payment of duty upto 150 lacs by actual factory and on payment of goods of Loan licencee using the same premises through cenvat and pla simulteniously.

" Loan licencee paying duty and availing cenvat credit while actul factory availing 08/2003 CE simulteniously"

Plz reply soon

AI Summary

Loan licencee manufacturer recognised as manufacturer for excise, with factory level SSI exemption aggregation affecting duty and CENVAT.
A loan licencee who manufactures excisable goods under its control and supervision using another person's factory premises is to be treated as a manufacturer under the Central Excises Act; both the loan licencee manufacturer and the primary manufacturer are recognised. When a factory is operated at different times by different manufacturers, the aggregate value of clearances from that factory in a financial year is combined for purposes of the SSI exemption notification, affecting exemption entitlement and related duty/CENVAT consequences.