https://www.taxtmi.com/circulars?id=6671 Yarn used in fabrics exported under bond is treated as raw material for the exported goods so that where fabrics are cleared for export without payment of duty no yarn duty arises and consequently no interest under the manufacturer exemption mechanism is payable; the Ministry has accepted this position and withdrawn its earlier contrary instruction. If goods exported under bond are later diverted to home consumption, duty on fabrics and yarn and the related interest (where the manufacturer exemption mechanism applied) are recoverable. en-us Mon, 15 May 1989 00:00:00 +0530 Sat, 04 Jul 2009 15:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=6671 Yarn used in fabrics exported under bond is treated as raw material for the exported goods so that where fabrics are cleared for export without payment of duty no yarn duty arises and consequently no interest under the manufacturer exemption mechanism is payable; the Ministry has accepted this position and withdrawn its earlier contrary instruction. If goods exported under bond are later diverted to home consumption, duty on fabrics and yarn and the related interest (where the manufacturer exemption mechanism applied) are recoverable. Circulars Central Excise Mon, 15 May 1989 00:00:00 +0530 https://www.taxtmi.com/circulars?id=6671