Nargis Agro Ltd., having a manufacturing unit situated in Jodhpur, made total clearances in the financial year 2014-15 of the total value of ₹525 lakh. The break-up of clearances so made is as under: Clearances worth ₹10

In order to claim the benefit of exemption under Notification No. 8/2003 - C.E. in a financial year, the total turnover of a unit should not exceed ₹400 lakh in the preceding financial year. As per Notification No. 8/2003 CE dated 1.03.2003 , for the purpose of computing the turnover of ₹400 lakh; Turnover of non-excisable goods has to be excluded. Therefore, clearance of non-excisable goods of worth ₹100 lakh shall be excluded and not to be considered while computing the threshold limit of ₹400 lakh for claiming SSI exemption. Clearances made which are exempt under job work notification are not to be considered while computing the threshold limit of ₹400 lakh for claiming SSI exemption. Therefore, exempt clearance of ₹75 lakh under job work notification will be excluded. Export turnover is to be excluded AND export to Nepal AND USA is also to be treated as export turnover. ( VIDE NOTIFICATION No. 8/2016 Dt. 1-3-2016 ) Clearance of excisable goods of ₹275 lakh in the normal course will be considered while computing the threshold limit of ₹400 lakh for claiming SSI exemption. The turnover of Nargis Agro Ltd, for claiming the SSI exemption during the FY 2015-16 will be: ₹525 lakh - (₹100 lakh + ₹75 Lakh + ₹75 Lakh) = ₹275 lakh. Since, the turnover of Nargis Agro Ltd. in the preceding financial year 2014-15 is less than ₹400 lakh, it will be eligible for exemption under notification no. 8/2003 - CE in the current financial year.