Excise duty on readymade garments now uniform; merchant-manufacturer bears liability with SSI exemption and deemed credit option available. Excise duty on readymade garments is restructured to impose liability on the merchant manufacturer in job-work arrangements, who must register at the private storeroom/warehouse, discharge duty at removal from that registered premises, and comply with Central Excise rules. The merchant manufacturer may authorize a job-worker in writing to pay duty and must either claim actual CENVAT credit on inputs supplied to job-workers or, where infeasible, claim a deemed credit; the two credit options are mutually exclusive. SSI exemption and tariff valuation based on retail price are also provided.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Excise duty on readymade garments now uniform; merchant-manufacturer bears liability with SSI exemption and deemed credit option available.
Excise duty on readymade garments is restructured to impose liability on the merchant manufacturer in job-work arrangements, who must register at the private storeroom/warehouse, discharge duty at removal from that registered premises, and comply with Central Excise rules. The merchant manufacturer may authorize a job-worker in writing to pay duty and must either claim actual CENVAT credit on inputs supplied to job-workers or, where infeasible, claim a deemed credit; the two credit options are mutually exclusive. SSI exemption and tariff valuation based on retail price are also provided.
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