Rural area SSI exemption under 8/2003

[sv bhasker]

Dear experts

An assesee sends raw material and  packing material to a manufcaturer in rural area and gets a product with  "X" brand  manufactured .  He pays the rural area manufacturer,  per  unit basis.In addition, he also manufactures "X" brand product  in his factory. 

(a)For computing exemption turnover under Notfn 8/2003-CE, is it necessary to add turn over of rural area manufacturer to assessee's own turn over in a year.OR

(b) In the given circumstances, is the exemption under Notfn 8/2003-CE, is available separately  each to the assessee and rural area manufcaturer. 

AI Summary

Rural area manufacturing exemption: ordering principal's turnover includes rural contractor's output, benefit only for rural manufacturer.
The turnover of goods produced by a rural-area contract manufacturer under an assessee's brand must be added to the assessee's turnover for computing the Notification No. 8/2003-CE exemption; the placing assessee cannot claim exclusion of that output, whereas the rural-area manufacturer may exclude goods bearing a brand or trade name when calculating his own exemption limit. The placing assessee supplying inputs and procuring manufacture qualifies as a manufacturer under section 2(f) for SSI purposes.