|SMALL SCALE INDUSTRIES
( SSI - GENERAL )
With the introduction of HSN based tariff and coming into force of Central Excise Tariff Act,1985 rationalisation and codification were done and Notification No. 175/86 CE dated 01.03.86 was issued providing certain exemptions to the SSI units.
Notification No. 175/86 CE was superseded and new Notification No. 1/93 dated 28.02.93 was issued effective from 01.04.93.
Notification No. 01/93 CE dated 28.02.93 was superseded by Notification No. 07/97 CE dated 01.03.97. This Notification was superseded within one month of its issue by Notification No. 16/97 CE dated 01.04.97. Notification No. 16/97 has been superseded time and again and at present Notification No. 8/2001-CE dated 01.03.2001 is in force.
Since earlier notifications do not provide for availment of MODVAT Credit. Notification No. 38/97 CE dated 27.06.97 was issued providing for availment of MODVAT (now CENVAT) Credit by the Small Scale Sector of duty for value of clearance upto Rupees One Hundred Lakhs. Notification No. 38/97 has been superseded time and again and at present Notification No. 09/2002-CE dated 01.03.20022 is in effect.
Presently there are two streams of concession to the Small Scale Sector without availing CENVAT Credit upto an aggregate value not exceeding Rupees One Hundred Lakhs and another availing CENVAT Credit and paying concessional rate of duty upto an aggregate value of Rupees One Hundred Lakhs only. Both the situations mentioned above are given below :-
A manufacture can opt for this option any time determining his eligibility for concession and the concessional rate of duty. The clearances already made in the financial year shall be taken into account, but no duty need be paid within the exemption limits. A manufacturer who intend to avail the said option shall exercise his option in writing and shall not be withdrawn during the remaining part of the financial year.
The aggregate value of the clearances for home consumption (including exports to Bhutan/Nepal) should NOT have exceeded RS. 300 lakhs in the preceding financial year.
Where goods are cleared from One/More factories value of all such clearance of factories should be CLUBBED.
Where goods are cleared by one/more manufacturers from a factory, value of all such clearances of all manufacturers, should be Clubbed.
Value of Clearances of
The exemption shall NOT apply to goods bearing brand/trade name (whether registered or not) of another person except the following cases :-
(a) Where the specified goods are in the nature of components or parts of any machinery/equipment/appliances for use as original equipment subject to following chapter X procedure.
In stead of chapter X procedure, a declaration stating that the value of such goods does not exceeds Rs. 100 lakhs in a financial year.
(b) Where the goods bearing brand/trade name of Government undertaking specified as under :-
(c) where the specified goods are manufactured in a factory located in a rural area.
Value of goods cleared by such factory ALONE shall be taken into account, if the said factories are owned/maintained by State/Central Governments.
Simple accounts can be maintained. No separate accounts for Central Excise are required private records are adequate for Excise purpose also.
A simple quarterly return may be filed.
Their own documents, challans invoices are accepted.
Visits of SSI Units can be made only with the written permission of the jurisdictional Asstt. Commissioner / Deputy Commissioner.
SSI Units are required to use pre-printed Excise control Code No. on all invoices, challans bills etc.
The progressive total of quantity and value since Ist April, should be shown on invoice / Delivery Challan.
If the value of clearances are below 100 lakhs, a declaration in the prescribed form should be filed before 15th of April ever year, before the Asstt. Commissioner / Deputy Commissioner and get the dated acknowledgement.
Job Worker of SSI units need not pay duty on the job work.
Simplified Export Procedure has been prescribed by the Board vide F.No. 209/18/96 Cx.6 dated 20.05.96.
Code No. is to be alloted to the Declarant by the Divisional Office.
The value of investment in Plant & Machinery can be upto Rs. 3 Crores as per industries (Development Regulation) Act,1951.
Manufacturers whose value of clearances are below 100 lakhs (for home consumption), instead of AR-4 procedure, the following simplified procedure may be followed.
1. GENERAL EXPORT
Such manufacture will not be required to take Central Excise Registration. They shall, however, file a declaration to the Central Excise Department and obtain declarants code number.
PROOF OF EXPORT
Following document can be accepted as proof of export.
2. Export through Merchant Exporter
It has been decided to accept the document prescribed by Sales Tax Department as the proof of export Sales made by manufacturer of the goods to the merchant exporters which ultimately are to be exported out are exempted from Central Sales Tax. The Sales Tax Department issues booklet to the merchant exporters containing serially numbered forms /ST-XXII form. After the goods have been exported by the Merchant exporters, the latter issues these forms to the to the manufacturers of the goods from whom the goods were purchased by them. The merchant exporters in turn have to account all these serially numbered form to the Sales Tax Department by furnishing a proof that the goods have been exported out. These proofs are in the form of presentation of the shipping bill duly completed by the Customs ,Bill of lading, Foreign Exchange remittance Certificates etc. The liability of the manufacturers to the Central Sales Tax gets waived only when they submit these forms to the Sales Tax Department. It is, therefore ,seen that indirectly exports get accounted for through the issue of H-Form or ST-XXII Form. Therefore it has been decided that to except photocopy of II-Form of ST-XXII form or any other equivalent Salex Tax Form duly attested and stamped by the manufacturer or his authorised agent should be submitted for the purpose of proof of export.
Submission of Proof of Export