TaxTMI 
TaxTMI 
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
Exemption of Rs. 1.5 crore from excise duty
01 Mar 2011 
5 Replies 
15762 Views Asked by
Exemption threshold for excise applies to dutiable clearances; prior-year turnover calculation includes exempt goods for eligibility.
The exemption applies to the value of dutiable clearances and excludes exempted goods when computing the exemption amount; eligibility requires that aggregate clearances in the previous financial year not exceed the specified turnover ceiling, and that prior-year figure is calculated including exempted goods. The notification's specified computation rules determine treatment of prior exempt sales and whether a pro rata monthly approach applies. (AI Summary)
The exemption applies to the value of dutiable clearances and excludes exempted goods when computing the exemption amount; eligibility requires that aggregate clearances in the previous financial year not exceed the specified turnover ceiling, and that prior-year figure is calculated including exempted goods. The notification's specified computation rules determine treatment of prior exempt sales and whether a pro rata monthly approach applies. (AI Summary)