Perfume used for abarbatti manufacturing

[narendra arora]

Dear Sir

An input namely perfume or incence is used to manufacture Aagarbati.  This input is exempted from levy of excise or not ? .  The producer of perfume is charging e d 12.36 percent from us.  How we ask him not to charge?  How to get ED exemption ?

Please advise !

Naren

[MUKUND THAKKAR]

Dear,

please  procure  your  inputs  from  SSI  units  who has  not  cross the limit  of  1.5 crore. only the way to reduce your input cost.  you can get  it  the exemption if  you  are  exported  your  final  product.

AI Summary

Excise duty exemption: procure perfume inputs from small-scale suppliers below the registration threshold or use export-based exemption. The core operative advice is that to avoid excise charged on perfume used as input for agarbatti manufacturing, procure the perfume from small-scale manufacturers below the excise registration threshold so they do not charge excise, or rely on excise exemption available when the final agarbatti product is exported.