TaxTMI 
TaxTMI 
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.
READYMADE GARMENTS UNIT WHETHER EXCISE APPLICABLE
20 Jul 2015 
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Excise liability on ready-made garments reversed after amendment and circular restored pre-existing exemption for textile inputs.
An initial Notification treated outputs as dutiable where inputs were exempt, making garments from exempt fabric subject to excise. A later amendment and administrative circular restored the pre-change exemption framework, clarifying that exempt fabric acquisitions do not automatically make finished ready-made garments dutiable and reinstating the prior duty-exemption position. (AI Summary)
An initial Notification treated outputs as dutiable where inputs were exempt, making garments from exempt fabric subject to excise. A later amendment and administrative circular restored the pre-change exemption framework, clarifying that exempt fabric acquisitions do not automatically make finished ready-made garments dutiable and reinstating the prior duty-exemption position. (AI Summary)