Domestic clearance of branded goods meant for export

Save Share

This query is : Resolved

Davindar Singh (Querist)

29 November 2012 Dear Sir,

Please clarify whether branded textiles goods under chapter 63 which were meant for exports can be cleared under domestic sale by removing tag, trims label etc. i.e. by making it unbranded at 50% rate of excise duty payable for branded textile goods.

Because concern in said case was 'Once Material is booked for higher duty rate we may refrain to degrading it as Excise Duty is legible on Production and discharged at the time of clearances.'

Please clarify whether above said concern are proper or we should clear said goods by paying 50% excise duty.

With regards,

Arun Kumar Singh

Arun Kumar Singh (Expert)

29 November 2012 Excise duty on branded ready made garment, if goods is not branded duty will not be applicable. If assessee is cleared the goods under MRP provision, 70% abatement is available. Excise duty will be payable on 30% of the MRP value. If MRP is not mentioned in the goods, duty will be payable on the transaction value. SSI exemption is available for own brand name, excise duty will be payable from starting if goods manufactured of other brand name.

Davindar Singh

Davindar Singh (Querist)

29 November 2012 Dear Sir,

As per Notification No. 29/2004-CE dated 09.07.2004 which was further amended by Notification No. 11/2011-CE dated 01.03.2011 wherein all goods of cotton not containing other textile material and falling under chapter 61, 62 & 63 and not bearing a brand name or sold under a brand name are charged to 5% excise duty with cenvat benefit.

Whether benefit of said notification can be claimed for such domestic clearance of export leftovers.

Thanks a lot for your prompt reply.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now