excise duty on modification activity

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Prashant Nerekar (Querist)
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05 May 2009 We have undertake modifiation activity in which we are using material while doing modification. Pl inform whether excise duty is applicable or not.

If you any rule and act no in this connection pl inform the same.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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06 May 2009 Manufacture is as defined in sec 2 (f). Normally modification may not amount to manufacture. However if a new product arises on modifcation then there wouldbe a liability.
The service tax liability could arise under bsuienss axuiliary service as processing for or on behalf of the client.