Value of clearances to be excluded for the calculation of limit of ` 400 lakh:
For the purposes of determining the aggregate value of clearances of all excisable goods for home consumption, i.e. ` 400 lakh, the following clearances shall not be taken into account:
(a) Clearances to FTZ/SEZ/100% EOU/EHTP/STP/UNO/International organization :
Clearances of excisable goods without payment of duty-
(i) to a unit in a free trade zone (FTZ); or
(ii) to a unit in a special economic zone (SEZ); or
(iii) to a hundred percent export-oriented undertaking (100% EOU); or
(iv) to a unit in an Electronic Hardware Technology Park or Software Technology Park (EHTP/STP); or
(v) supplied to the United Nations Organisation (UNO) or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under Notification No.108/95- C.E. dated 28.08.1995.
(b) Clearances bearing the brand name or trade name of another person : Clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption;
(c) Clearances of intermediate goods/goods captively consumed in case the final product is eligible for SSI exemption: Clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods. Here, specified goods are those goods, which are eligible for SSI concession.
(d) Clearances exempt under specific job work notifications : Clearances which are exempt from the whole of the excise duty leviable thereon under specific job work notifications, viz. Notification No. 214/86-C.E., dated 25.03.1986 or No. 83/94-C.E., dated 11.04.1994 or No. 84/94-C.E., dated 11.04.1994.
(e) Export clearances: Clearances meant for exports.
| Value for the purpose of the SSI notification (8/2003) would mean value fixed under section 4 or 4A or tariff value fixed under section 3(2) of the Act. |
Points which merit consideration
1. Export to Nepal and Bhutan is not considered as exports. It is taken as clearance for home consumption. Thus, export turnover of Nepal and Bhutan shall be included for determining the limit of ` 150 lakh as well as ` 400 lakh.
2. For computing the turnover of ` 150 lakh, the clearances of goods exempted under any other notification is to be excluded. It is important to note here that while computing the limit of ` 400 lakh, turnover of goods exempted under any other notification (except clearance to FTZ, SEZ, 100% EOU, EHTP/STP, UN etc. and specific job work notifications) has to be included.