TaxTMI 
TaxTMI 
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?
Eligibililty for exemption as per notification 30/2004
12 Nov 2009 
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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. (AI Summary)
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. (AI Summary)