Exemption from excise duty under S. No. 10 of notification No. 30/2004 the Raymond case – Board reacts
Please recall yesterday's DDT story, Fear of arrest costs an assessee Rs 16 Crores – Now the Board wants to know if there are similar issues elsewhere.
The Board letter states, “The exemption from excise duty under this S. No. 10 is available if the staple fibres are procured from outside and subjected to carding, combing or any process required for spinning.”
It has been brought to the notice of Board that there are units who procure "polyester tow " falling under heading 5501 and manufacture Tops falling under Heading 5506 using the tow-to-top process and are wrongly availing exemption from excise duty under S. No.10 of notification No. 30/2004- CE dated 9.7.2004.
Now, Board wants details from the field about units which are procuring "polyester tow" and manufacture "Tops'' under heading 5506 and are availing exemption from excise duty under S. No.10 of notification No. 30/2004- CE dated 9.7.2004.
The field can also cite the sad case of Raymond ending up paying Rs. 8 Crores!
CBEC 's F. No. 332/19/2008- TRU Dated : June 20, 2008