In terms of notification No.31/2011-CE dated 24.3.2011, full exemption from Central Excise duty is available to duty-paid, branded ready-made garments and made-ups returned or brought back to the same factory or premises and cleared after being re-made, re-conditioned, re-packed or subjected to any other process, subject to the fulfillment of certain conditions. Certain procedural relaxations have been made in the operation of this exemption. The exemption will now be available to goods returned or brought back to any registered premises of the same brand owner/ manufacturer and not only to those returned to the same factory. It would be available only if the goods are returned or brought back within a maximum period of one year from the date of their clearance. It is clarified that the threshold limit of 10% of the aggregate value of clearances for home consumption in the preceding year is to be computed for each factory/ registered premises separately. It has also been clarified that in computing this limit the value of goods cleared under the provisions of rule 16 of the Central Excise Rules are to be excluded. Finally, duty-free clearance after the prescribed processes have been carried out on the returned goods is to be allowed on the basis of a declaration from the manufacturer that the goods are duty-paid.
NOTIFICATION RELATED TO ABOVE IS AS FOLLOWS:-
New Delhi, dated the 17th March, 2012
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, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 31/2011 -Central Excise, dated the 24th March, 2011, published in the Gazette of India Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 243 (E), dated the 24th March, 2011, namely:-
In the said notification,-
(i) in the opening paragraph, for the words “the same premises or factory”, the words “any registered premises or factory of the same manufacturer or brand owner” shall be substituted;
(ii) in the Proviso, in condition (iv), for the words “preceding financial year”, the following shall be substituted, namely:-
“preceding year; and
(v) such goods are returned to the said registered premises or factory within a period of one year from the initial removal.
Provided further that such returned goods after being re-conditioned, refinished, repacked or subjected to any other process shall be removed by the manufacturer or brand owner based on self certification that such goods are duty paid goods:
Provided also that for the purposes of computing the aggregate value of clearances not exceeding 10% referred to in condition (iv) ,-
(a) the value of clearances shall be calculated separately in respect of each registered factory or premise ;
(b) the value of clearances of goods cleared under the provisions of rule 16 of the Central Excise Rules, 2002 shall be excluded.”.
(Sanjeev Kumar Singh)
Under Secretary to the Government of India
Note.- The principal notification No. 31/2011-Central Excise, dated the 24th March, 2011, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 243 (E), dated the 24th March, 2011, which has not been amended so far.