exemption Benifit under notification 30/2004

[HIMANSHU JARIWALA]

Dear Sir,

Company XYZ Pvt. Ltd. Manufacturing Fully Drawn Yarn from chips which is excisable and further process FDY to produce Monofilament yarn which is also exisable because copany has facility to produce FDY as per Notification No. 30/2004-CE. Now If another firm purchase FDY from XYZ Pvt. Ltd. and produce Mono Filament Yarn then also excise is applicable to other firm on productuion of Monofilament Yarn? The Pvt. ltd. Company and firm has Common Directors as Partners.

[rakshit verma]

Notification No. 30/04 allows exemption from payment of excise duty, if no Cenvat credit has been taken on the inputs.As such, aonther firm who has purchased the material from M/s XYZ to manufacture Mono filament Yarn is also not liable to any excise duty. The Pvt. ltd. Company and firm having Common Directors as Partners has no effect on the excisability/dutiability.

rakshit verma

AI Summary

Notification exemption applies where no Cenvat credit on inputs; purchaser manufacturer remains exempt and common directorship irrelevant. Notification exemption under Notification No. 30/2004 exempts payment of excise duty on subsequent production where no Cenvat credit has been taken on inputs; accordingly, a purchaser-manufacturer who buys FDY and produces monofilament yarn is not liable for excise on that production provided the condition of no Cenvat credit on inputs is satisfied, and common directorship between supplier and purchaser does not alter the exemption's applicability.