Excise duty on soap & detergent industry

Laundry soap are manufactured by registered cooperatives or institutions recognized by Khadi and Village Commission or Board are exempt from excise duty. Proprietory unit is not entitled to exemption under notification no. 88/1988-CE dated 1.3.1988.

There is exemption on goods arising during manufacture of exempted goods[89/95-C.E dated18.5.95].So,there is no duty liability on you fro Excise.Apart from it you are also entitled for S.S.I exemtion of Rs.!.5 cr. on byproduct  as your main product is exempted and the same will not be counted at the time of taking S.S.I exemption.  

Dear Prabhat  & Arun  ,

That  is  correct that it  is  exempted  but in case of  any of  its  by-product  which is  taxable than what is  our  duty regarding that ..

There is no question of taxability of the by product when the notification plainly says that when the main product is exempted under any notification then the by product will also be exempted.