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

Perfume Used in Incense Sticks: Excise Duty Exemption Query and Cost-Reduction Tips for Manufacturers A query was raised about whether perfume used in the manufacturing of incense sticks (Agarbatti) is exempt from excise duty, as the perfume producer is charging a 12.36% excise duty. The response suggested procuring inputs from Small Scale Industries (SSI) units that have not exceeded the 1.5 crore limit to reduce costs. Additionally, it was advised that excise duty exemption could be obtained if the final product is exported.