Excise applicability

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Dear Sir,

 Excise duty is applicable or not in case of a Readymade garment manufacturer, who mainly exports the good. Also they sale locally scraps and rejected items.

please advise.

prakashku1989 @ gmail.com

9899976114

Replies (2)

Dear Mr. Prakash,

There is no levy of Central Excise on exports provided if you follow certain procedure as prescribed in 42/2001 CE

Secondly, on scrap which is sold locally, excise duty would be attracted provided if it is a excisable goods and arising out of manufacturing activity.

Thirdly, on rejected items you need to follow Rule 16 of Central Excise Rules, i.e is to say you would have paid on MRP when goods removed, if you have taken credit when it is rejected, then Rule 16 applicable or if you have not taken credit of it then you may sell those goods by paying normal sales tax

Venkat

venkat @ hiregange.com

962116162

Thanks a lot sir....


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