Excise on unbranded garments from an excise unit

HI

 

We are a start up for Garments Manufacturer. We are having registration under central excise and have been issuing excise invoice for around 10 months now. Recently a new query has risen where in someone suggested us that if we sell UNBRANDED goods to somebody who might or might not put his own brand on it, then we are not required to pay excise duty as per notification no. 30/2004.

Please confirm the validity of the above suggestion. It will be of great help to us and will help us to save costs.

Regards

Vineet

Replies (1)

hey vineet....i have read ur query...what is my thinking is that....Forunbranded good ...there are two options available to the manufacturer....

1)first option is that if manufacturer is not availing Cenvat Credit on purchases...than he is not liable to pay excise duty...

2) second option available to u is that....if manufacture is availing cenvat credit...then he is liable to pay excise duty on manufacture...

on goods of cotton...5%

on other good  10%...

pls confirm the rate once....thank u

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