C.Ex duty on Cotton Yarn Waste, Central Excise

[deepak kalambate]

Dear Sir,

Please let me know whether C.Ex. duty is applicable on clerances of yarn waste as C.Ex Tarriff showing NIL rate of duty (CHHD 5205)

 

Posts / Replies

[Pradeep Khatri]

Well, some case laws which were pronounced by the Hon'ble Tribunals, are in you favour.  But, since Excise Duty is an Indirect Tax, it better to collect the tax and deposit in the Governments account as litigation cost is always on higher side than deposition of central excise duty on the nominal value of wastes and scraps.  Choice is yours.