Rubber Manufacturers - Applicability of Notification No. 56/88-C.E. [Chapter 40] - Central Excise - 345/15/88-TRU

Rubber Manufacturers - Applicability of Notification No. 56/88-C.E. [Chapter 40] Letter F. No. 345/15/88-TRU Dated 19-4-1988 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Rubber Manufacturers - Applicability of Notification No. 56/88-C.E. [Chapter 40] Attention of the trade is invited to Notification No. 56/88-C.E., dated the 1st March, 1988 providing for the slab rates for small scale tread rubber manufacturers under this notification issued in suppression of Notification No. 45/87-C.E., dated the 1st March, 1987, concessional slab rates of Rs. 5, 7 and 11 per Kg. have been prescribed for the small scale units manufacturing tread rubber subject to certain conditions. Some doubts have been raised about the conditions of eligibility prescribed in this notification. A view has been expressed that in order to deny the benefit of concessional duty under this notification, a unit should exceed both, the quantity limit of production of tread rubber of 250 tonnes in the proceeding financial year as well as the value of clearances limit of all excisable goods of one and a half crores. In this connection it is clarified that the benefit of exemption under this notification shall not be available if either of the two limits is exceeded. In other words a unit will disqualify the benefit available under this notification of either it exceeds the quantity of clearance of 250 tonnes of tread rubber in the preceding financial year or if it exceeds the value of clearance of all excisable goods of Rs. one and a half crores in the preceding financial year.