Rural area SSI exemption under 8/2003

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..... Rural area SSI exemption under 8/2003
Query (Issue) Started By: - sv bhasker Dated:- 23-4-2012 Last Reply Date:- 25-4-2012 Central Excise
Got 3 Replies
Central Excise
Dear experts An assesee sends raw material and packing material to a manufcaturer in rural area and gets a product with "X" brand manufactured . He pays the rural area manufacturer, per unit basis.In addition, he also m .....

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..... anufactures "X" brand product in his factory. (a)For computing exemption turnover under Notfn 8/2003-CE, is it necessary to add turn over of rural area manufacturer to assessee's own turn over in a year.OR (b) In the given circumstances, is the exemption under Notfn 8/2003-CE, is available separately each to the assessee and rural area manufcaturer. Reply By Naveed S: The Reply: (a) Yes, for .....

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..... computing the exemption turnover under notification, no. 8/2003 CE dated 01.03.2003, the turnover of rural area manufacturer is required to be added to assesee's own turnover in a financial year. (b) herein the exemption from computing turnover under notification, no. 8/2003 CE dated 01.03.2003, shall not be available to the assessee who is placng order with the rural area manuacturer. Hence thi .....

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..... s benefit is not available to U. But, yes, the exemption for manufacture of specified goods bearing a brand name or trade name in a rural area shall be available to the rural area manufacturer. In other words, in the case of rural area manufacturer, the goods manufactured through brand name or trade name are not required to be taken into account by him for calculating his exempton limit under not .....

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..... ification, no. 8/2003 CE. Reply By sv bhasker: The Reply: Thanks for the response Mr Naveed. Your answer for (a) is clear to state that the assessee who sends raw material to a manufcaturer in rural area for getting"X" brand goods manufcatured, is a real manufacture as defined in sec 2(f) of Central Excise Act,1944 for the purpose of availing SSI benefits. Reply By Naveed S: The Reply: Yes, .....

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..... absolutely correct..Now you have understood the point perfectly.. Thanks a lot for the Thanks...........
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