09 May 2012
Basically to charge excise duty on goods there are 3 imp thresholds to be followed. 1stly, the process done with the inputs amounts to such process that a new and distinct product comes into existence.
2ndly, this new and distinct product is marketable.
3rdly, the product is mentioned under the Central Excise Tariff Act.
Your case is of the 3rd level. the products mentioned by you are not there in CETA. In any case these products are made mainly by cottage industries on which the government has various policies to uplift this sector. So they are one of those products which are promoted by the government and are kept immune from any tax liabilities.
CAclubindia
