CENTRAL EXCISE NORMS FOR POWERLOOM
SECTOR RELAXED
The Government has
relaxed the pre-condition of registration for the traders of yarns
and fabrics who pass on the credit of the duty paid on goods sold
by them. A doubt had been raised that central excise registration
was required by those traders of yarn and fabrics before they
can issue invoices and transfer the credit.
The Government has
also decided to allow the manufacturing activities without insisting
on registration as a pre-condition. In order to facilitate their
operations, the manufacturers in the textile sector have been
allowed to pay the central excise duty without first obtaining
registration. Thus it is not necessary to have this registration
at the point of clearance of the goods. However, the clearance
documents i.e., the numbered invoice with date will be accepted
as proper document to claim credit. The step has been taken in
view to facilitate the large number of manufacturers. In the normal
case the manufacture of excisable goods (yarns, fabrics and readymade
garments) is required to obtain the Central Excise registration
prior to commencing his manufacturing activities.
It is also clarified
that there is no requirement of central excise registration for
selling yarn and fabrics in terms of the central excise law. A
seller of yarn and fabrics (or any other goods) can freely sell
his goods to any person without the buyer being registered with
the central excise department.
The Government has
taken the above special measures to ensure that the trade practices
of the textile industry continue without hindrance and the new
system of excise duty structure on textile, announced in the recent
Budget proposals, is adopted in a smooth manner.
