Availment of SSI exemption for exempted goods, Central Excise

[DIPAK K]

GOOD MORNING DEAR EXPERTS. extracts from notification no. 08/2003-CE. "Provided further that exemption contained in this notification shall not apply to goods which are chargeable to nil rate of duty or are exempt from the whole of the duty of excise leviable thereon."In the light of above proviso, will ssi benefit will be available to goods which are chargeable to 2% duty videnotf. no. 01/2011-ce as these are exempted goods as per CCR 2004.If SSI is available then wont it will amount to double benefit of SSI exemption and only 2% duty. PPlease reply. Thanks and regards.

Posts / Replies

[Rajagopalan Ranganathan]

Dear Mr. Dipak. K,

Goods which are chargeable to 2% duty vide Notf. no. 01/2011-CE are exempted goods for the purpose of availing credit of duty paid on inputs, capital goods and input services. Moreover, SSI exemption is granted by Notification No. 8/2003-CE and concessional rate of duty of 2% is available under notification No. 1/2001-CE. Under Notification No. 8/2003-CE excisable goods are chargeable at Nil rate of duty up to clearance of 150 lakhs. Under Notification No. 1/2011-CE 2% concessional rate is applicable from the first clearance of the excisable goods. Therefore assessee has an option to avail the most beneficial Notification. Therefore excisable goods which are chargeable to 2% duty under Notification No. 1/2001-CE are eligible to avail exemption under Notification No. 8/2003-CE.

[DIPAK K]

THANK YOU VERY MUCH SIR FOR YOUR QUICK RESPONSE. THANKS AND REGARDS.