Excise Duty Exemption on garments when returned for repair or reconditioning etc.

[F. No. B-1/3/2011 TRU]


New Delhi, the 24th March, 2011No.31/2011-Central Excise

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act,1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts  all goods bearing a brand name or sold under a brand nameand falling under  chapter  61,62 or  63(  except  6309 and 6310) of the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986), from the whole of the  duty of excise leviable thereon, when goods, on which appropriate duties of excise  have   been paid,  are  returned or  brought back to the same premises  or factory and cleared  therefrom after being re-made,  re-conditioned, re-packed  or subjected to any other  process ;Provided that the exemption contained in this notification shall apply subject to the followingconditions, namely:-(i) no  Cenvat credit of the duty paid on such returned goods is taken under the provisions of rule 16 of the Central Excise Rules,2002;(ii) an intimation containing the details of the document under which goods are returned and their value, is submitted  to the  jurisdictional Central Excise authority, within  48 hours of the receipt of the returned goods in the factory or premises ; and(iii) a proper account of receipt and disposal of such goods is maintained and accounted for in themonthly return.(iv) the aggregate value of goods cleared from a factory or premises under this exemption in a financial year does not exceed 10% of the aggregate value of clearances for home consumption from the same factory or premises in the preceding financial year.Explanation: – For the purposes of this exemption ˜appropriate duties of excise™ shall mean duties of excise leviable under the First Schedule to the Central Excise Tariff Act, 1985, (5 of 1986) read with any relevant exemption notification for the time being in force.

(Sanjeev Kumar Singh)

Under Secretary to the Government of India

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