Exemption under notification 30/2004 dt 09/07/2004

[HIMANSHU JARIWALA]

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.

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

Whether you have clarified in this matter? If no please mention along with the latest position.

M. Govindarajan

AI Summary

Excise exemption under notification: whether duty on intermediate yarn enables final product removal without further duty. Query whether Notification 30/2004 permits paying duty on FDY at removal from Unit 1 and thereafter clearing finished monofilament yarn from Unit 2, located at a different premises, without further excise duty; requests case law on whether inter unit transfers across separate locations qualify for the notification relief and whether duty payment on the intermediate discharge excise liability on the final product.