need of declaration.

[Guest]

If a new S.S.I. unit is enjoing  the benifit of exemption of 1.5 caror T.O. limit. Than when it is necessery to submit 'Declaration Form' to C.Excise department .

should it be filied every year.

[YAGAY andSUN]

The Government of India has given various concessions to small scale industries (SSI).  The most important notification giving these concession is notification No. 8/2003 dated 01-03-2003.  SSI units whose turnover is less than of Rs. 4 crore are eligible for the concessions.  If SSI unit does not avail CENVAT credit on inputs, turnover upto Rs. 150 lakhs is fully exempt.  If SSI unit avails CENVAT credit on inputs, it has to pay normal duty on all clearances and no SSI exemption is available. {The exemption limit was Rs. 100 Lakhs upto 31-03-2007}. 

Option must be indicated, if SSI unit intends to avail CENVAT credit - The first option i.e. NIL duty upto Rs. 150 Lakhs and normal duty for subsequent clearance is automatic.  However, if assessee want sot pay notmal duty , he must inform option to department.  He should inform in writting to Assistant Commissioner with a copy to Range Superintendent of Central Excise, the following -

1. Name and address of manufacturer
2. Location/Locations of factory/factories
3. Description of specified goods  produced
4. Date from which option under the SSI exemption notification has been exercised.
5. Aggregate value of clearances of specified goods (excluding the value of clearances not covered under SSI exemption notification e.g. goods exempted under any other notification, goods with brand name of other, intermediate products and strips of plastics used for manufacture of sacks and bags).

The option of paying normal duty is available any tiem during the year, but the option once availed cannot be withdrawn during the financial year.

 

 

[NEERAJ KUMAR, RANCHI]

Dear Mr Jain,

At 140 Lakh you are required to submit declaration. This answer is as far as I could understand you query.

AI Summary

SSI exemption option requires written declaration to tax authorities when electing normal duty, and option is irrevocable for the year. SSI exemption under Notification No. 8/2003 is available only if the unit does not avail CENVAT credit; units availing CENVAT must pay normal duty. An assessee who elects to pay normal duty must inform the Assistant Commissioner in writing with specified details and a copy to the Range Superintendent. The option can be exercised any time during the year but, once exercised, cannot be withdrawn for that financial year; a declaration to excise authorities is required when nearing the exemption threshold.