Excise Duty not Applicable on Branded Readymade Garments Manufactured before 01.03.2011: CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that excise duty is not applicable on branded readymade garments manufactured before March 1, 2011. The case involved an appellant who was issued a demand for excise duty on garments manufactured before the specified date. The tribunal held that the demand was invalid as the excise duty on branded readymade garments was introduced only from March 1, 2011. This decision provides clarity on the applicability of excise duty and ensures that taxpayers are not subjected to retrospective demands. The ruling reinforces the principle that tax laws should be applied prospectively and not retrospectively.