excise on garments for branded goods

[satbir singhwahi]

Sir

The Garment unit has domestic sale 85 lacs and export sale 15 crores. Now it wants to take order of 15 lacs for supply of garments to domestic buyer under brand name of buyer . Whether Excise registration is required.

[Rajagopalan Ranganathan]

Since your domestic clearance value is not exceeding ₹ 1,35.00,000/- ( 90% of 1,50,00,000/-) you need not take a registration. Since the value goods cleared for export under bond/LUT without payment of duty need not be included in the value of clearance for domestic market you need not worry about clearances made for export.

[KASTURI SETHI]

Sh.Satbir Singh Wahi Ji,

Pl. also go through the reply dated 17.2.16 of Sh. Mahir S. in respect of Issue ID :109893 dated 17.2.16

AI Summary

Garment Unit's Domestic Sales Below 1.35 Crores: No Excise Registration Needed for New Order Under Buyer's Brand Name. A garment unit with domestic sales of 85 lakhs and export sales of 15 crores inquires about the necessity of excise registration for an additional 15 lakh order from a domestic buyer under the buyer's brand name. One response clarifies that since the domestic clearance value does not exceed 1.35 crores, registration is not required. Export clearances under bond or LUT without duty payment are excluded from domestic market clearance calculations. Another response suggests reviewing a related reply from a previous discussion for further guidance.