01 March 2013
Excise duty is exempted on readymade garments from 01.03.13 subject to not availing credit. What about the stock of readymade garments lying in factory on closing day of 28.02.13? is it liable for payment of excise duty on its clearance.?
02 March 2013
These stocks as well as those in progress are those where the input credits have been availed. Therefore the need to pay duty would be there. An alternative is to reverse the duty payable on the same by arriving at the raw material content of RM +WIP +FG and reverse the credit availed on the same. Once this is done you should be able to opt for the exemption as the condition of not 30 is met. A separate article on garments has been appended in the articles section.
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