SSI Exemption

[Ashok Chopra]

Respected Forum,

I am excisable unit registered as a Medium Scale Unit paying excise duty on my product.

I have set up New Unit at different STATE with new SSI registration certificate with same name and style and for the same product.

Our balance sheet is ONE

Please guide me:-

 1. Can i eligible for SSI exemption from registration for New Unit?

2. Can any body provide me any court order or notification, which clearly describe that whether i am elgible or not elgible for the SSI exemption from registration for my new unit.

[YAGAY andSUN]

If SSI unit is not a separate legal entity then exemption may not be available.  I will check the settled legal position and revert.

[LALIT MUNOYAT]

When you say that the Balance sheet is one it means there is one owner only. The limit of SSI applies ownerwise in that the total turnover of one manufacturer from all the factories should not exceed ₹ 150 lakhs. SSI registration with DIC is of no importance because in SSI is onsidered on the quantum of Turnover and not based on the investment in plant & machinery. You are not eligible for SSI exemption if the turnover off all the Units under one manufacurer exceeds ₹ 150 lakhs. For a detailed commentary you may read my article on the following link

[YAGAY andSUN]

The answer given by Mr. Lalit is appropriate and per the settled legal position.

AI Summary

SSI exemption eligibility depends on turnover aggregation and separate legal entity status, not separate SSI registrations. SSI exemption depends on aggregation of an owner's turnover across all units and the unit's legal identity; separate DIC SSI registrations or geographically separate factories do not prevent aggregation, and exemption is unavailable where combined turnover under one owner exceeds the prescribed threshold.