No Change In Cenvat Rules On Excise Duty For Textile Goods

There is no change in exemption from excise duty for textile goods as mentioned in central value added tax (CENVAT) Rules 2004, the Union Ministry of Finance has clarified.
 
The Central Board of Excise and Customs (CBEC) had issued a notification on July 17, 2015, which stated that the excise duty credit could be claimed by the manufacturers of end products only if the previous links in the manufacturing chain had paid the excise duty for the inputs at each of the stages.
 
This notification has created some confusion as the textile production chain remains scattered. Subsequently, a few representatives from the textile industry met senior officials in the ministry and sought clarification.
 
Through its Notifications no. 37, 38 and 39 of 2015, the ministry has clarified that there is no change in CENVAT Rules 2004 with respect to exemption from excise duty for textile goods.
 
The notification reads, “For the purposes of this condition (as mentioned in July 17 notification), appropriate duty or appropriate additional duty includes nil duty or concessional duty, whether or not read with any relevant exemption notification for the time being in force.”

Source:fibre2fashion.com