READYMADE GARMENTS UNIT WHETHER EXCISE APPLICABLE

[satbir singhwahi]

Sir

Please clarify whether Ready made Garment unit are subject to excise in view of notification 36/2015 dt.17.07.2015.They purchase cloth made from cotton and polyster yarn.

AI Summary

Excise Duty Exemption Restored for Garments Using Cotton-Polyester Fabric After Amendment to Notification 36/2015 A query was raised regarding the applicability of excise duty on a readymade garments unit following Notification 36/2015 dated 17.07.2015. The garments unit uses fabric made from cotton and polyester yarn, which is exempt from excise duty. An expert clarified that excise duty is applicable if the input fabric is exempt. However, an amendment (Notification 37/2015 and CBEC Circular No. 1005/2015) issued on 21.07.2015 clarified and restored the previous duty exemption status as per Notification 30/2004-CE. The discussion involved knowledge sharing on the implications of these notifications.