CA. Saurabh Mishra (Practice) (104 Points)
09 March 2013Dear Expert ,
My Client is engaged in manufacturing and trading of Soap & Detergent under Khadi & Village Industries Commission (KVIC) . Although this manufacturing is exempted under Notification . Is there is any requirement for give declaration or pay excise duty to Department for any of its by products etc.
I am waiting for your kind Response ...
Thank YOu ,
Regards ,
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 09 March 2013
Laundry soap are manufactured by registered cooperatives or institutions recognized by Khadi and Village Commission or Board are exempt from excise duty. Proprietory unit is not entitled to exemption under notification no. 88/1988-CE dated 1.3.1988.
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 11 March 2013
There is exemption on goods arising during manufacture of exempted goods[89/95-C.E dated18.5.95].So,there is no duty liability on you fro Excise.Apart from it you are also entitled for S.S.I exemtion of Rs.!.5 cr. on byproduct as your main product is exempted and the same will not be counted at the time of taking S.S.I exemption.
CA. Saurabh Mishra
(Practice)
(104 Points)
Replied 12 March 2013
Dear Prabhat & Arun ,
That is correct that it is exempted but in case of any of its by-product which is taxable than what is our duty regarding that ..
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 13 March 2013
There is no question of taxability of the by product when the notification plainly says that when the main product is exempted under any notification then the by product will also be exempted.
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