Excise query ... plz help guys

Hi,

Will u be more clear on the question

as u r end product is not dutiable cenvat credit is not eligible and invariable you have to add the excise duty on yarn to the cost of fabric and to save this you have to manufacture the dutiable fabric. In case the fabric is meant for export you can procure the yarn on advance authorisation or any other benefits allowed as per foreign trade policy.

hi vishnu , thanx fr d answer but i want to knw that the excise deptt has a special power whereby they can waive off the duty to be charged on raw material as the end product is not dutiable .... i want to knw bout tht as it is the only measure tht i can adopt so tht the duty is not charged ..... i want to knw the basis of tht power .... 

 

Hi  Vishnu, K12345D

Here  I am  Suggesting  you   that  if  the  the your  Finished  product  not dutiable cenvat credit is not eligible to  you , And  excise  payment on your yarn is  mandatory  for  you. 

Textile products are covered by notification No. 29/2004 & 30/2004 -CE. You may pay concessional rate of duty and take credit in view of Notification No. 29/2004. While under Notification No. 30/2004 You will not have to pay excise duty and you will not eligible for Cenvat credit.

Concessional rate of duty has been increased from 4% to 5% under notification No. 29/2004 dt. 09.07.2004

Check notfn 1/2011 dt 31/03/2011 if duty on fabrics or not. You can hav 2 options to pay duty 1% and not to avail Cenvat or pay duty 5% and avail cenvat credit.

Originally posted by : Chirayu Kothi
	Check notfn 1/2011 dt 31/03/2011 if duty on fabrics or not. You can hav 2 options to pay duty 1% and not to avail Cenvat or pay duty 5% and avail cenvat credit.

Thanks for update......