Just a day after the Prime Minister Narendra Modi urged the tax administrators of the country to have a cooperative approach towards taxpayers, The Central Board of Excise and Customs (CBEC) has directed excise officials to visit apparel retail outlets or chains only when they have specific inputs regarding duty evasion and that too after the approval of senior officers.
In a circular issued, CBEC said, “It is hereby directed that field formations shall not visit individual retail outlets or retail chains, except based on specific inputs regarding duty evasion and with the approval of the Jurisdictional Commissioner or Additional Director General or above.” The body said this while clarifying on the scope of levy of excise duty on branded apparels having a retail sale price of Rs. 1,000 or more. Though the instruction will benefit domestic garment industry but as plenty of exporters too have their few retail outlets, they will also be benefitted by this.
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In order to avoid tax evasion and disputes, CBEC said it has also been provided that affixing a brand name on the product, labelling or relabelling of its containers or repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, amounts to manufacture. “Further, merely because the outlets (shop) of a retailer, from where readymade garments or made ups are sold, has a name, say, M/s ABC and Sons, the apparel or made ups sold from such outlet (shop) cannot be held as branded apparel or made ups and become liable to excise duty,” it added.
In the Budget 2016-17, excise duty was increased on branded apparels and made up articles of textiles of retail sale price of Rs. 1,000 or more. The new duty is 2 per cent (without CENVAT credit) or 12.5 per cent (with CENVAT credit).
Bharat Tex Special Report 2026 
