Copany A LTD(Unit-1) is manufacturing Fully Drawn Yarn(FDY) from Chips and and is excisesable goods. Company A LTD(Unit-2) is procuring Yarn from A LTD (Unit-1) and Further process FDY yarn to produce monofilament yarn and then sale the product monofilament yarn from A LTD (Unit-2). Both Unit -1 and Unit-2 are located at diffrent places having distance of about 10 Kilometers. Now A Ltd can take benenift of above notification and pay duty at the time of removal of FDY from unit-1 and clear final product monofilament yarn from unit -2 without payment of duty.
Also please quote any case law in this regard if any.
Regards.
Can Company A Ltd Claim Duty Exemption for Processing FDY to Monofilament Yarn Under Notification 30/2004? Company A Ltd has two units involved in manufacturing processes. Unit-1 produces Fully Drawn Yarn (FDY) from chips, which is excisable. Unit-2, located 10 kilometers away, processes this FDY into monofilament yarn. The query concerns whether Company A Ltd can benefit from exemption under notification 30/2004, allowing them to pay duty only when removing FDY from Unit-1 and clear the final product from Unit-2 without further duty. The discussion seeks clarification on this exemption and requests any relevant case law. A respondent inquired about the resolution or current status of the matter. (AI Summary)
TaxTMI 
TaxTMI 
