Gold Ltd. is having a manufacturing unit at Ghaziabad. During the financial year 2013-14, the value of total clearances from the unit was ₹880 lakh as per the following details: (i) Clearances to 100% EOU ₹80 lakh (ii) C

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2015
Gold Ltd. is having a manufacturing unit at Ghaziabad. During the financial year 2013-14, the value of total clearances from the unit was ₹880 lakh as per the following details: (i) Clearances to 100% EOU ₹80 lakh (ii) Clearances exempted vide Notification No.214/86-C.E. dated 25th March, 1986 ₹125 lakh (iii) Exports to USA ₹125 lakh (iv) Exports to Nepal ₹50 lakh (v) Clearance as loan licensee of goods carrying the brand name of another upon full payment ₹180 lakh (vi) Balance clearance of goods in the normal course ₹320 lakh Find out whether the unit is entitled to benefit of exemption under Notification No.8/2003-C.E. dated 1st March, 2003 as amended for the financial year 2014-15. Explain with reasons.

Answer & Explanation:

Computation of Value of Clearances by Gold Ltd. During FY 2013-14 Particulars Amount (₹ in lakhs) Amount (₹ in lakhs) Gross value of Clearances 880 Less: Clearances to 100% EOU 80 Clearances exempted vide Notification No. 214/86 CE 125 Exports to USA 125 Exports to Nepal 50 Clearances as loan licensee of goods carrying brand name of others 180 Total Exclusions (560) Value of Clearances for SSI Exemption 320 Since the value of clearances (excluding specified clearances) does not exceed ₹400 lakhs during 2013-14, the unit is eligible for Small Scale Industries Exemption under Notification No. 8/2003 for the financial year 2014-15. Note: In order to determine whether the unit is eligible for SSI exemption, Exports to Nepal are included in the value of clearances for threshold calculation, but excluded from dutiable clearances for exemption benefit.

Topics: Central Excise

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