08 June 2011
Whether Excise duty is chargeable for following process ? LLDPE granuels purchased from Relaince, then passes through Extruder for colouring granuels with the use of masterbatch and then pulverising coloured granuels making powder form of 18-20 mesh. Thus question is Whether such 18-20 mesh powder will come under purview of excise or not ?
08 June 2011
The levy of excise duty is not product specific. Before going to the product you need to understand whether the process amount to manufacture. The meaning of manufacturing has been very well given in the Excise Act 1944. If the process amount to manufacture then u need to check whether its exempt/ non excisable product. If its not then excise duty is very well leviable.
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