I had A client Who manufacture A readymade garment i.e from rawmaterial on which no excise duty is levied,he do cutting, Stiching .Such work is not done on job worker basis but On sale.Whether he is liable to pay excise duty?
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Whether excise duty will be levied
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| Originally posted by : ANIRUDH MIMANI | ||
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I had A client Who manufacture A readymade garment i.e from rawmaterial on which no excise duty is levied,he do cutting, Stiching .Such work is not done on job worker basis but On sale.Whether he is liable to pay excise duty? |
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If he converts Ram Material into Finished goods, if any manufacturing process is undertaken and new product is produced then excise duty is leviable
The particular product to be mentioned in CETA for levy of Excise duty as textile comes under tariff based assessment it is excisable
If the clothes he stitched is a whole product, which he sold to the customers and the value of sale exceeds Rs 150 lakhs in the financial year then excide duty will be payable
If he purchases cloth materials and then stich and sells it to customers then no excise duty is levied. If he manufacture cloth materials then liable for excise duty. for example if purchases shirt pieces and stitches shirt and then sells to customers not duty leviable as cloth before and after is the same and no different product is created but only form has been changed from plain cloth material to Shirt
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