Exports of leather goods by SSI units - Registration not required when clearances for home consumption is well within the exemption limit - Central Excise - 37/37/94-CX

Exports of leather goods by SSI units - Registration not required when clearances for home consumption is well within the exemption limit Circular No. 37/37/94-CX Dated 20-5-1994 [From F.No. 209/29/94-CX.6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi I am directed to refer to the representation made by Council for Leather Exports regarding difficulties faced by them while exporting the goods. 2. It has been represented that manufacturer of leather goods like Jackets/Wallets/bags etc. are being asked to get the Central Excise registration by the Central Excise Collectorates even though their clearances for home consumption is well within the exemption limit. It is further stated that they are being directed to observe regular AR 4/AR 4A procedure as their clearances for export has exceeded the limit of Rs. two crores as provided in the small scale exemption notification. 3. The issue has been examined. It is observed that Notification No. 13/92-C.E. (N.T.), dated 14-5-1992, as amended, exempts the manufacturer from registration provided the aggregate value of the goods cleared (i) by a manufacturer from one or more factories; or (ii) from any factory by one or more manufacturers does not exceed Rs. 30 lakhs. This limit has been fixed keeping in view of the value of duty free clearances allowed to SSI Units. 4. As regards the clubbing of export clearances along with the clearances for home consumption for determining the eligibility to small scale exemption is concerned, it is seen that under Paragraph 3 of Notification No.1 /93-C.E. as amended it is clearly provided that aggregate value of clearances has to be with reference to home consumption. As such, the units whose clearance for home consumption is well within the exemption limit are not required to get registration in terms of Notification No. 13/92-C.E. (N.T.) as amended. They should however file a declaration as provided under Notification No. 13/92-C.E. Since no registration is required, such units need not follow the AR 4/AR 4A procedure while exporting the goods.