excise registration on exempted goods
ramesh
(Querist) 24 February 2011
This query is : Open
Respected Sir,
My friend has a factory divided in two sections in one plot. In one part dutiable (narrow woven fabrics) items were manufactured and in other part other excisable items (non woven fabric) were manufactured subject to condition of availment of Cenvat Credit on inputs under Notification No 30/2004-CE dated 09.07.2004 amended. Now availment of Cenvat Credit on inputs in second part has been discontinued and goods thus have become exempted. Total turnover of both products was more than Rs 4 crores during last year 2009-10.Both items are textiles on which SSI Notification No 08/2003-CE dated 01.03.2003 is not applicable. Now my friend wants to manufacture Non woven fabric in the same unit without Excise registration and but manufacture Narrow woven fabric with Excise registration .But excise officers are asking him to work non woven fabrics under Excise registration and however he may not pay Excise duty on the non woven same and also file ER-1 of the same . Are excise officers are right in their contention ?.My question is whether excise registration is compulsory for both dutiable and conditionally exempted goods manufactured in the different parts of the same factory ? Can conditionally exempted goods like non- woven fabric are exempted from registration under Central Excise Rule 9(2) ?
Thanks and regards,
Harish Kumar
