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Applicability of duty on exempted goods after not.

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This query is : Resolved

Ramkrishna (Querist)
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16 August 2011 A CO. ENGAGED IN MFR OF EXEMPTED GOODS ( THE INPUT WAS ALSO EXEMPTED). AFTER A NOT. CHANGE THE INPUT & FINAL PRODUCT WERE MADE TO EXCISABLE. MY QUESTION IS WHAT WILL BE THE IMPACT ON THE CLOSING STOCK ON ENECTMENT DAY OF SUCH NOTIFICATION.WHETHER THESE HAVE TO CLEAR IN EFFECTIVE RATES.

PLEASE DO ANSWERE WITH ANY REFERNCES.

U S Sharma

U S Sharma (Expert)
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16 August 2011 notification date is cut off date, all stock prior to date is not eligible for input credit, however the finished goods stock in DSA(RG-1) on the specified date is eligible to get cleared without duty.

Ramkrishna

Ramkrishna (Querist)
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17 August 2011 Please made it clear that thatthe input stock in balance and finished goods both is to clered at nil rate. Because after budget change the rates of stock automatically get change.

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