Is it possible for exemption limit extension upto Rs. 5 crore revenue?

Is there a way to get an exemption on Central Excise if we have crossed the Rs 4 Crore revenue limit by Rs. 10 Lacs? We used to get an exemption of Rs. 1.5 Crore and of late, when our revenue crossed the Rs. 4 Crore limit by Rs. 10 Lacs, we got a notice from the Central Excise department that we are not eligible for the exemption and need to deposit the duty accordingly.

Is there a way out of this and are there any rulings for exemption limit extension unto Rs. 5 Crore revenue?

Answers (1)

360 votes

No, there is no ruling for availing an exemption if the turnover is more than Rs. 4 Crore. The solution is to pay the pending amount of duty along with interest as soon as possible. The department would hold you liable for the interest in this case. There is no need to wait for the demand notice to arrive because if the demand notice is issued then you would end up paying the duty along with interest and also penalty would be imposed.

Notification 08/2003 dated 1.03.2003 is the only available exemption notification which allows the exemption of Rs. 1.5 Crore if the turnover is below Rs. 4 Crore mark.

For future you can operate from the same facility but get the work done under 2 different names. In this manner you can easily manage the turnover and avail the benefit of the notification by splitting the turn over under two names.

Kindly contact us for any further details and action.

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