Clarification on Excise Notification No. 34/2015, 35/2015 & 36/2015 all Dtd. 17.07.2015

[Tejas Shah]

Sir,

CBEC has issued Excise Notification No. 34/2015, 35/2015 & 36/2015 all Dtd. 17.07.2015 vide which finished goods have been exempted subject to duty has been paid on inputs and no credit of such excise duty has been taken by the manufacture. Noti. No. 34/2015 amend Noti. No. 30/2004, Noti. No. 35/2015 amend Noti. No. 01/2011, Noti. No. 36/2015 amend Noti. No. 12/2012.

As per new notification, all textile articles mentioned in Noti. No. 30/2004 & 01/2011 are exempted subject to duty has been paid on inputs and no credit has been taken.

For textile fabrics/articles, Tex. Yarn is inputs.

At present Texturised Yarn manufacturer simultaneously avail option to manufacture exciseable and non-exciseable goods. Excisable at the tariff rate of duty & exempted under Noti. No. 30/2004,

Now, please clarify how textile fabrics/articles manufacture comply with the Noti. No. 34/2015, 35/2015 and whether Tex.Yarn manufacturers have compulsory registered them self with excise and have to issue excise invoice or otherwise. Pls. advice. - Tejas Shah 09712772601 - [email protected]

AI Summary

Excise exemption conditionality: finished textiles exempt only if inputs duty paid and no credit taken, raising registration questions.
The Notifications exempt specified finished textile goods only if duty was paid on inputs and no excise credit taken; this raises whether yarn manufacturers and grey-fabric traders must register, issue excise invoices, and pay duty when inputs are not "deemed duty paid." CBEC clarification is awaited; absent deeming, yarn and grey-fabric units may be chargeable and traders may need registration to claim or pass on cenvat. Job work for readymade garments is presently characterised as non-manufacture and exempt, though drafting confusion has provoked queries.