Excise duty on ready made garments

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Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2013 6% excise duty on branded readymade garments & made ups of cotton, not containing any other textile materials -Reg.
Posted In Excise Duty | Notification | No Comments »
Seeks to amend notification No. 7/2012- CE, dated the 17th March, 2012, so as to prescribe 6% rate of excise duty to branded readymade garments and made ups of cotton, not containing any other textile materials.
NOTIFICATION No. 8/2013-Central Excise
New Delhi, the 1st March, 2013
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No 7/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. 158 (E), dated the 17th March, 2012, namely :-
In the said notification, in the Table, against serial number 7, in column (3), for the entry, the following shall be substituted namely:-
“All goods of cotton, not containing any other textile material.
Explanation. – For the removal of doubts, it is hereby clarified that ‘goods of cotton, not containing any other textile material’, shall include goods made from fabrics of cotton, not containing any other textile material, even if they contain sewing threads, cords, labels, elastic tapes, zip fasteners and similar items used for stitching, fastening, holding or adornment, of materials other than cotton. ”
[F. No. 334/3/2013-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note. – The principal notification No.7/2012-Central Excise, dated the 17th March, 2012, was published in the Gazette of India, Extraordinary, vide number G.S.R. 158 (E), dated the 17th March, 2012.

What does it me whether full excise duty is exempt or if goods are made of only cotton are exempt. please elobrate.

Arun Kumar Singh

Arun Kumar Singh (Expert)

02 March 2013 You have 2 option to avail for any one notification for exemption 30/2004-CE and 29/2004-CE. Under notification no. 30/2004 all goods exempt from excise duty and another notification 29/2004 you have option to pay 6% excise duty on cotton and 12% on other textile material and avail cenvat credit.

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