Dear All,
We are a Garment Manufacturing unit producing readymade garments on contract for certain brand. Our Brand Owner is not disclosing their RSP to us and hence we are not affixing Price Label. Hence, in such a case whether we are exempt from Excise Duty or whether we have to discharge excise duty under section 4 at transaction value.
Garment Manufacturer Debates Excise Duty on Non-Disclosed Retail Price; Options Include Advance Rulings or Duty Under Protest. A garment manufacturing unit inquires about excise duty obligations when the brand owner does not disclose the retail sale price (RSP) for ready-made garments. The discussion reveals differing opinions: some argue that without RSP disclosure, excise duty is not applicable until the brand owner affixes a price label, while others suggest that duty is payable based on transaction value. The conversation references various circulars and notifications, highlighting complexities in interpreting excise duty laws. Participants suggest seeking advance rulings or paying duty under protest to avoid penalties, emphasizing the need for clarity in contractual terms and legal interpretations. (AI Summary)
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