Eligibililty for exemption as per notification 30/2004

[RAMESH ANANTHAKRISHNAN]

We are producing Nylon Monofilament yarn as per CETH 54041990. We do not avail CENVAT credit on the input material and avail exemption for the payment of duty as per notification 30/2004. Our customers who are producing Fishnets. Fishnets are classified under 56081110. Excise duty as per the tariff 8% but effective rate as per the Notification 29/2004 is 4%. In this situation please let us know whether our customers are eligible for exemption as per notification 30/2004?. At present fishnet manufacturers are not paying any duty for fishnets. Is it correct?

[Mukesh Kumar]

You are concerned with the excise duty to be paid by your customers. So before, you should ask them what is the their understanding about the provisions. Whether they are falling under SSI exemption or they are treating the product differently. Since it is a live issue, I request you put your detailed comments here for further brainstorming.

[RAMESH ANANTHAKRISHNAN]

Thanks Mr.Mukesh. I think most of the fishnet manufacturers avail SSI exemption. However I will check further.

AI Summary

Clarification sought on duty exemption eligibility under Notification 30/2004 for fishnet makers using Nylon Monofilament yarn. A query was raised regarding the eligibility for duty exemption under notification 30/2004 for fishnet manufacturers who use Nylon Monofilament yarn, classified under CETH 54041990. The yarn producers do not claim CENVAT credit and seek clarity on whether their customers, who manufacture fishnets classified under 56081110, are exempt from excise duty. It was noted that fishnets have an effective duty rate of 4% per Notification 29/2004, but manufacturers are currently not paying any duty. A response suggested consulting the manufacturers about their understanding of exemptions, particularly regarding SSI exemption. Further verification was advised.