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Manufacturers alone to ask for excise exemptions - SC

30 Oct '07
1 min read

The Supreme Court (SC) recently passed a judgment stating that the burden to claim deduction on excise duty rests on the manufacturers not on departments.

Further, it also asserted that responsibility lies with the manufacturers to maintain proper records and price declarations before claiming such exemptions.

The over all implication of the verdict was to motivate producers to meticulously plan their operation with regard to the raw materials consumed and the amount of exemption they are expecting to procure.

SC's ruling came after a plea was filed by Modipon Fibre, Modinagar, UP. The petitioner, a manufacturer of nylon and polyester yarn, demanded an exemption of 2 percent on scores of turn-over tax (TOT) for the dispatches made to Surat.

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