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of <h1>Polyester staple fibres and yarn by Khadi exempt from excise duty; conditions apply on input credit reversal.</h1> The Central Government, under Notification No. 38/07 dated October 4, 2007, exempts polyester staple fibres and yarn of polyester staple fibre manufactured by the Khadi and Village Industries Commission from excise duty for specified periods: March 1, 1994, to August 21, 2002, for fibres, and March 1, 1994, to February 28, 2002, for yarn. This exemption applies if the fibres and yarn, containing less than 70% polyester by weight, are hand spun and used in manufacturing Poly Vastra. The exemption is contingent upon reversing any input credit taken for inputs used in manufacturing these goods.
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