Washing process is amount to mfg for garments?

This query is : Open

R B SHARMA (Querist)
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09 February 2013 Sir,

Our unit is availing exemption under notification no 50/2003-CE from the whole of the duty of excise or additional duty of excise in Dehradun and we are manufacturer of Read Made Garments. we are sending the goods for WASHING purpose to a unit who is also availing the exemption of 50/2003, means in the same area.

Service tax is exempted for manufacturer of Excise-able Goods.

Now the question is, washing process is amount to "Manufacture" or not and Service Tax is applicable or not. Please guide for the same.

Regards
R B Sharma

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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10 February 2013 Washing per se cannot be a process of manufacture. However under sec 2 (f)(ii)/ (iii) if it is deemed manufacture, it would consititue manufacture under central excise. To confirm this youmay have to see the section and chapter notes of the garments chapter 62/63 in the central excise tariff.

R B SHARMA

R B SHARMA (Querist)
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11 February 2013 Dear Madhukar Ji

Thanx for your replay, but in the both Section & Chapter note, there is not a clarification for the same.

Could you clear the same at your end.

Regards
R B Sharma

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