Excise duty

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Prashant Kumar (Querist)

16 November 2008 Dear Sir,
i am running a Steel tube cutting & threading business. I have installed a SSI unit and work of our unit is Cutting the long size pipe in stall picess (eg. 1", 2", 3", 4" .... etc.) and threaded these also. these goods are used in house for flow the water to various places eg. Kitchen, Bathroom, etc. and another pipe also produce in this unit (size 2.5 feet) which are use in agriculture. so please advise, Excise duty is applicable or not. if applicable than clear the limit of exemption. if Not applicable than please provide notification or case judgement related the same.

Please mail on the address : toyacy@rediffmail.com
Thanking you.

yours truly,

Prashant Kumar

Rajesh Kumar

Rajesh Kumar (Expert)

11 February 2009 In general mere cutting, threading etc does not amount to manufacture and hence there is no excise duty liability. However, to answer the issue authoratively on question of manufacture, detailed examination of manufacturing process is required.
SSI exemption is available till limit of Rs. 1.5 crores.

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