Small is beautiful.

proposals released by the Empowered Committee, have vehemently opposed the scheme of SSI itself and have recommended withdrawal of the SSI Exemption for the manufacturers, The Hon'ble Finance Minister in his proposals has showered benevolence to the SSI sector. This Budget has extended great concessions to the SSI sector as under: ¾ Rule 4 of Cenvat Credit Rules 2004, has been amended by notification No.06/2010 – Central Excise (N.T) dated 27 th Feb 2010, whereby a proviso has been inserted in Sub rule 2 (a), whereby, an eligible SSI assessee has been allowed the CENVAT Credit in respect of Capital Goods received by such SSI assessee to the extent of the Whole of the amount of Duty paid on such Capital Goods in the same financial Year, where such goods are received. ¾ Hitherto, irrespective of any class of assesses, Cenvat Credit on Capital Goods have been allowed only up to 50% of the Excise Duty paid on such Capital goods in the financial year pertaining to the receipt of such capital goods and the balance 50% is available only on any subsequent year. With this amendment, an SSI assessee can avail the Cenvat Credit of Capital Goods in full (100%), in the same of financial year of receipt of such capital goods. ¾ There is also an explanation appended to this proviso, wherein it has been clarified that, this allowance of 100% Cenvat Credit on capital good son the year of receipt is available to an assessee " who is eligible " for the SSI exemption. In other words, a manufacturer, whose aggregate value of clearances of all excisable goods for home consumption (excluding Exports/Non Excisable goods/Job work transactions) is less than Rs.400 lakhs in the preceding financial year, would be entitled for the above benefit, irrespective of the fact, whether such manufacturer avails the benefit of the SSI Notification or not. Excise Rules 2002, has been amended by substitution of second proviso to rule 8 (1) of CER, 2002, whereby an assessee who is eligible for the SSI exemption, is allowed to pay the duty on the goods cleared by him once in a quarter. ¾ Hitherto, irrespective of any class of assessees, the due date for the payment of duty for the goods cleared by him in a particular month is fifth day of the