Credit of duty paid on inputs and outputs on processed fabrics of Chapters 52, 54, 55, processed and unprocessed fabrics of Heading Nos. 58.01, 58.06, 60.01 or 60.02 - 11/96 - Central Excise - Non Tariff

Manufacturers Can Claim 50% Excise Duty Credit on Specific Processed Fabrics Under 1996 Notification; Conditions Apply

The notification issued on July 23, 1996, by the Central Government under the Central Excise Rules, 1944, allows manufacturers of certain processed fabrics to claim credit for excise duty paid on specified inputs. The applicable fabrics fall under Chapters 52, 54, 55, and specific headings, excluding certain sub-headings. The declared duty is deemed paid and is equivalent to 50% of the excise duty on final products. This credit can be used for excise duty payment on final products, with conditions applied to composite mills and unprocessed fabrics. The notification is effective from August 1, 1996.