READYMADE GARMENTS UNIT WHETHER EXCISE APPLICABLE, Central Excise

[satbir singh wahi]

Sir

Please clarify whether Ready made Garment unit are subject to excise in view of notification 36/2015 dt.17.07.2015.They purchase cloth made from cotton and polyster yarn.

Posts / Replies

[CS SANJAY MALHOTRA]

Dear Mr. Satbir,

As per the recent Notification No. 34/2015-CE dated 17.07.15, Excise is applicable on RMG if the input is exempted which holds true in your case as fabric is exempted from duty of Excise.

Wait till tomorrow, CBEC may come with amendment or clarification which may restore earlier provisions of Duty Exemption as was prevailing under 30/2004-CE dated 09.07.04

[satbir singh wahi]

Thks Sanjay Ji for timely reply . Pls update through your article as and when clarification comes.

[CS SANJAY MALHOTRA]

Dear Satbir ji,

Agreed with you and the amended Notification No. 37/2015 and CBEC Circular No. 1005/2015 issued on 21.07.2015 clarifies the issue and restored the position as it existed prior to 17.07.15.

I have met you long back in Ludhiana.