(i) Mohan Enterprises is eligible for composition levy under section 10(1) if their turnover in the preceding year does not exceed Rs. 1.5 Crore. However, since they are engaged in trading of pan masala, they are not eligible for composition levy under section 10(2) as it is not a specified service or goods.

(ii) Sugam Manufacturers is eligible for composition levy under section 10(1) if their turnover in the preceding year does not exceed Rs. 1.5 Crore. Since they have registered offices in Punjab and Haryana and supply goods in neighbouring states, they are eligible for composition levy under section 10(2) as they are engaged in the supply of goods.