Central Excise Procedure

[SNEHAL SHAH]

R/sir,

We are the Manufacturing of Textile and Readymade Garments business . Is it any difference Central Excise procedure with Textile and Readymade garments products and other manufacturing products ? If yes please guide to us .

Thanks and Regards,

SNEHAL SHAH

[Rajagopalan Ranganathan]

Sir,

You have to follow normal procedure. However please go through Rule 8A of Central Excise Rules, 2002 for Woven fabrics of cotton, falling under Chapter 52.

[SNEHAL SHAH]

Respected sir,

Thanks a lot for valuable reply . But I can not very much clear about Rule 8A . If possible please guide to us regarding what exactly difference between normal Excise procedure and Textile .

Is ADDITIONAL DUTIES OF EXCISE (TEXTILES AND TEXTILE ARTICLES) ACT, 1978 continue ? If yes what Tax structure will be applicable ?

Advance thanks Sir,

SNEHAL SHAH

[Rajagopalan Ranganathan]

Dear Shah,

Rule 8A is applicable for the period from 1st March, 2002 and ending with and including the 31st May, 2002. The duty payable on

Woven fabrics of cotton, falling under Chapter 52, when subjected to any one or more of the following processes, namely :-

(a) flanellete raising;

(b) stentering;

(c) damping on grey and bleached sorts;

(d) back filling on grey and bleached sorts;

(e) singeing, that is to say, burning away of knots and loose ends in the fabrics;

(f) cropping or butta cutting;

(g) curing or heat setting;

(h) padding, that is to say, applying starch or fatty material on one or both sides of the fabric; or

(i) expanding, and,

Woven fabrics of man-made fibres, falling under Chapter 54 or Chapter 55, when subjected to any one or more of the following processes, namely:-

(a) singeing, that is to say, burning away of knots and loose ends in the fabrics;

(b) padding, that is to say, application of natural starch to one or both sides of the fabrics;

(c) back filling, that is to say, application of starch to one side of the fabrics;

(d) cropping, that is to say, cutting away mechanically of loose ends from the fabrics; or

(e) the process of blowing (steam pressing) carried out on woven fabrics of acrylic fibre,

from the 1st March, 2002 and ending with and including the 31st May, 2002, shall be paid by the 15th day of June, 2002.

Therefore rule 8 A is not applicable for the present period. I apologize for the wrong information given by me.

Regarding Additional duties if Excise (Textiles and Textile Articles)is concerned Notification No. 31/2004-CE dated 9.7.2004 exempts all goods falling within the schedule to Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 from whole of the duty of excise leviable thereon under the said Act. For the Schedule please refer to R.K. Jain's Central Excise Tariff.

[SNEHAL SHAH]

R/sir,

Again Thanks a lot for reply .

As per my understanding , Notification No. 31/2004-CE dated 9.7.2004 says that all goods central excise duty falling under Schedule of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 is totally Exempted - means we have to dispatch or remove this product without payment of duty .

Thanks and Regards,

SNEHAL SHAH

[Rajagopalan Ranganathan]

Dear Shah,

Notification No. 31/2004-CE dated 9.7.2004 exempts the goods mention in the schedule to Additional Duties of Excise (Textile and Textile Articles) Act, 1978 from the duty leviable under Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 only. You have to pay duties payable under other Acts,

AI Summary

Exemption from additional excise duty for textile goods applies, yet central excise liabilities under other statutes remain payable.
Manufacturers of textiles and readymade garments must follow normal central excise procedure. Rule 8A was time limited and is not presently applicable. A notification exempts goods in the schedule to the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 from the additional duty under that Act only; duties payable under other enactments remain chargeable.