Base fabrics duty in respect of cotton fabrics removed under Rule 96DD to be collected only after the embroidery of such fabrics - Central Excise - 32/88-CX.6

Base fabrics duty in respect of cotton fabrics removed under Rule 96DD to be collected only after the embroidery of such fabrics Circular No. 32/88-CX.6 Dated 18-4-1988 [From F. No. 223/11/88-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Payment of base fabrics duty in respect of cotton fabrics removed under Rule 96 DD for embroidery - Point regarding. It has been brought to the notice of the Board that the manufacturers of embroidered fabrics working under compounded levy scheme and receiving cotton fabrics without payment of duty under Rule 96 DD are being asked to pay duty on base cotton fabrics under Notification No. 211/82, dated 31-8-1982 at the time of payment of compounded embroidery duty (i.e. before, start of the shift). The matter has been examined by the Board. As per Rule 96DD the payment of base fabrics, duty is required only after embroidery of the fabrics and clearance of the same for home consumption or for export. It would not be legally correct to ask the assessee working under Rule 96DD to pay duty on the base fabrics at the time or before removal of such fabrics for embroidery. It has, therefore, been decided by the Board that base fabrics duty in respect of cotton fabrics brought under Rule 96DD should be collected only after the embroidery of such fabrics and at the time of clearance of such fabrics for home consumption or for export. Trade interests may be informed through suitable trade notice.