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Whether excise duty will be levied

ANIRUDH MIMANI (Audit Assistant) (64 Points)

07 June 2016

I had A client Who manufacture A readymade garment i.e from rawmaterial on which no excise duty is levied,he do cutting, Stiching .Such work is not done on job worker basis but On sale.Whether he is liable to pay excise duty?

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ANIRUDH MIMANI (Audit Assistant) (64 Points)
Replied 07 June 2016

Originally posted by : ANIRUDH MIMANI
	I had A client Who manufacture A readymade garment i.e from rawmaterial on which no excise duty is levied,he do cutting, Stiching .Such work is not done on job worker basis but On sale.Whether he is liable to pay excise duty?

Kowsthubha (Article Assistant) (49 Points)
Replied 09 June 2016

If he converts Ram Material into Finished goods, if any manufacturing process is undertaken and new product is produced then excise duty is leviable

The particular product to be mentioned in CETA for levy of Excise duty as textile comes under tariff based assessment it is excisable

elangovan (Tax and Financial Advisory) (217 Points)
Replied 09 June 2016

If the clothes he stitched is a whole product, which he sold to the customers and the value of sale exceeds Rs 150 lakhs in the financial year then excide duty will be payable

Kowsthubha (Article Assistant) (49 Points)
Replied 09 June 2016

If he purchases cloth materials and then stich and sells it to customers then no excise duty is levied. If he manufacture cloth materials then liable for excise duty. for example if purchases shirt pieces and stitches shirt and then sells to customers not duty leviable as cloth before and after is the same and no different product is created but only form has been changed from plain cloth material to Shirt