All Goods exempt under any notification to be excluded like

  • Sale to EOU/SEZ/STP/EHTP/UN
  • Sale of taxable Intermediate product if final product exempt
  • Transfer to Job worker as per notifications 214/86-CE, 83/94-CE and 84/94-CE
  • Export Clearances

Exam Questions

Question 15
Net value of clearances (excluding taxes and duties) of Gopal Manufacturers was Rs. 345 lakh
during the year 2013-14. During the year 2014-15, their net value of clearances (excluding
taxes and duties) was Rs. 365 lakh. Calculate excise duty payable by Gopal Manufacturers
during 2014-15, if excise duty rate is 12.5%.

-a-

Units having turnover upto Rs.400 lakh in the previous financial year and manufacturing goods
specified in the SSI exemption notification are eligible for exemption from duty up to turnover
of Rs.150 lakh in the current financial year.

Therefore, in the give case Gopal Manufacturers can avail SSI exemption of Rs.150 lakh in
2014-15 as their turnover during 2013-14 was less than Rs. 400 lakh. It is presumed that goods
manufactured by them are specified under SSI exemption notification.
Hence, they have to pay excise duty @ 12.5% on balance value i.e. on Rs.215 lakhs (Rs.365 –
Rs. 150). Thus, duty payable will be Rs.26,87,500.

  1. Indirect Tax
  2. Excise
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CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
  • himanshu gaggar's image
    himanshu gaggar
    May 5, 2017, 2:48 p.m.
    Sir does this mean that if final product is exempt then intermediate product too shall not be included in 150 lacs limit. Would duty be paid on such clearances.
    View answer
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