SSI exemption effective from 1-4-2002 for units not availing CENVAT credit. - 008/2002 - Central Excise - Tariff

SSI exemption limits excise liability for manufacturers not availing CENVAT credit, subject to option and aggregation rules.

The notification exempts from excise duty (and special excise duty) the amount in excess of the nil-rate specified for first clearances of specified goods for home consumption, subject to a monetary aggregate limit for first clearances and an exception where full exemption under another notification has been availed. The exemption applies to goods used as inputs for further manufacture within the producing factory. A manufacturer opting for the exemption must not avail CENVAT credit on inputs or capital goods for the covered clearances, must exercise a non-withdrawable yearly option to pay normal duty if chosen, and must aggregate clearances across factories or manufacturers as prescribed.