exemption Benifit under notification 30/2004, Central Excise

[HIMANSHU JARIWALA]

Dear Sir,

Company XYZ Pvt. Ltd. Manufacturing Fully Drawn Yarn from chips which is excisable and further process FDY to produce Monofilament yarn which is also exisable because copany has facility to produce FDY as per Notification No. 30/2004-CE. Now If another firm purchase FDY from XYZ Pvt. Ltd. and produce Mono Filament Yarn then also excise is applicable to other firm on productuion of Monofilament Yarn? The Pvt. ltd. Company and firm has Common Directors as Partners.

Posts / Replies

[rakshit verma]

Notification No. 30/04 allows exemption from payment of excise duty, if no Cenvat credit has been taken on the inputs.As such, aonther firm who has purchased the material from M/s XYZ to manufacture Mono filament Yarn is also not liable to any excise duty. The Pvt. ltd. Company and firm having Common Directors as Partners has no effect on the excisability/dutiability.

rakshit verma