Excise on branded readymade garments for mrp below 1000/-

I need an opinion on recent excise duty imposed in readymade garments during Budget 2016.

As understood it is applicable for readymade garments with MRP of 1000/- when sold under a brand name.

Now we are unclear on a situation wherein if the MRP is below 1000/- and bears a brand name, does one need to obtain excise registration certificate and clear goods with nil duty or he can continue clearing goods as the MRP is below 1000/- without taking Excise registration.

Since the excise duty comes into picture only when the MRP crosses 1000/- we are a bit confused on how to handle the situation considering the fact that MRP of all readymade garments will always be less than Rs. 1000/-

Please share your opinion.

Regards
Prashant

Replies (2)

Where MRP is less than Rs.1000/- there is no liability under CE. The billing + price tags should be enough proof of the same. 

Dear Sir,

 

We are Job workers producing garments to many Brands.

Is excise duty applicable on goods having no MRP TAG, and are "Branded" in terms of Central Excise Rules ??

Purchase Order given by the Buyer does not mention any MRP Value. Is Excise duty applicable on the sale value ??

 

Thanks in advance

LALIT KUMAR S

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