Excise duty relief for textile industry to continue
The government has allayed the apprehension about any change in the central value added tax (CENVAT) rule, saying that the exemption from excise duty meant for textile industry will continue. In a fresh notification issued on Wednesday, the Central Board of Excise and Customs (CBEC) said that there will be no change in CENVAT Rules, 2004 under which textile manufacturers are exempted from paying up to 12.5% excise duty on the sale of finished goods within the country. The clarification came after representatives of the industry met Finance Ministry officials, expressing concern over an earlier notification of CBEC issued on July 17. The July 17-notification had said that the excise duty rebate can be claimed by the finished product manufactures if all links of the production chain have paid the required duty at each stage. The announcement worried the entire textile sector in which the production chain is scattered. Now, the Finance Minister has said that the earlier notification was issued to clarify a Supreme Court order with regard to the countervailing duty (CVD) imposed on imports. “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," the new notification said referring to the conditions mentioned in the July 17-notification for availing exemption of excise duty on finished goods.
July 30, 2015 | 5:45 pm IST.