13 July 2014
Hello Experts!! I am going to start a new business of Manufacturing PP/HDPE Woven bags by purchasing PP/HDPE woven fabrics from suppliers on which the excise duty will be paid. My query is that do I also need to pay excise on my final product that is "bags" which will be converted from fabrics at my premises. The main problem is that if I charge duty on my final product then the rates of my product will rise and I will not be able to strive in the market. So, Please suggest the best way to overcome this problem.
15 July 2014
But Excise duty is also applicable on the fabrics made out of Polypropylene granules. We have to pay Excise duty on purchase of fabrics also.
My query is that is the Cenvat available on the purchase of fabrics and selling of bags??
15 July 2014
If you are manufacturing the granules from scrap then duty will be applicable on granules. If granules are used in the manufacturing of exisable goods then no need to pay excise duty on manufacturing of granules. If granules are used in the exempted goods then duty will be payable.
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