Exemption of Rs. 1.5 crore from excise duty

[manoj gupta]

W.e.f. 01.03.2011, excise duty is leviable on ready made garments. An exemption of Rs. 1.5 crores is also available under the act. Now, whether excised duty is leviable on a firm which has done sales of Rs. 2.10 crores upto Feb. 2011. Will it be liable to central excise on any sales done after that as the sales upto date exceeds Rs. 1.5 crores. or it is so that the exemption of 1.5 crores will be available on sales done after levy of duty i.e. 01.03.2011. Suppose it does further sale of Rs. 25 lacs from 01.03.2011 to 31.03.2011. Will it be liable to pay excise duty on this Rs. 25 lacs or it will be entitled to exemption upto Rs. 1.5 crores on this sale. Pls. clarify

AI Summary

Debate on Excise Duty Applicability for Firm's Rs. 25 Lakhs Sales in March 2011 Under Rs. 1.5 Crore Exemption A discussion on the applicability of excise duty on a firm with sales of Rs. 2.10 crores before March 1, 2011, when excise duty on ready-made garments became effective. The main issue is whether the firm is liable for excise duty on additional sales of Rs. 25 lakhs in March 2011, given the Rs. 1.5 crore exemption. Responses clarify that the exemption applies to sales after March 1, 2011, provided the previous year's turnover did not exceed Rs. 4 crores, including exempted goods. There is debate over whether the exemption should be prorated for March 2011.