TaxTMI 
TaxTMI 
Dear Sir,
Please let me know whether C.Ex. duty is applicable on clerances of yarn waste as C.Ex Tarriff showing NIL rate of duty (CHHD 5205)
C.Ex duty on Cotton Yarn Waste
06 Jul 2012 
1 Reply 
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Excise duty on yarn waste: consider collecting and depositing tax to avoid revenue exposure despite favourable tribunal rulings.
Whether excise duty applies to clearances of cotton yarn waste is contested; tribunals have issued favourable rulings, but because excise is an indirect tax and litigation costs can outweigh the nominal value involved, a practical recommendation is to collect and deposit central excise on yarn waste and scraps to avoid revenue exposure. (AI Summary)
Whether excise duty applies to clearances of cotton yarn waste is contested; tribunals have issued favourable rulings, but because excise is an indirect tax and litigation costs can outweigh the nominal value involved, a practical recommendation is to collect and deposit central excise on yarn waste and scraps to avoid revenue exposure. (AI Summary)