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

Exemption eligibility for notified inputs when customers claim SSI status affects excise duty liability for manufacturers. Manufacturer of nylon monofilament does not take CENVAT on inputs and claims an input exemption under the relevant notification. The key issue is whether fishnet manufacturers, classified under the fishnet tariff and currently not remitting excise (reportedly claiming SSI exemption), are eligible for the same exemption, and how their claimed SSI or other treatment affects duty liability and the supplier's position under the input exemption.