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Ca final idt

bishal dangi (CA Final) (37 Points)

04 January 2017

Does dyeing and colouring of yarn and Pulverising of chilly amount to manufacture?

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5 Replies

sagar (artice) (59 Points)
Replied 04 January 2017

yes it's amounts to manufacture

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bishal dangi (CA Final) (37 Points)
Replied 04 January 2017

Isn't it that Yarn would be called as yarn, so is it commercially distinct?

sagar (artice) (59 Points)
Replied 04 January 2017

when identify or utility or both of output is changed as compared to input is called at manufacture

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 06 January 2017

Excise duty is payable on manufacture normally. For some goods the concept of deemed manufacture ( see chapter notes in Central Excise Tariff) + third schedule listed goods.

Many activities are deemed as manufacture in case of yarn. You need tosee the chpater notes. Yes dying of yarn would amoun to manufacture.

Powdering chilly may or may not be manufacture as long as the characteristic remains the same. It may fal in chapter 9 where the CE duty rate is presnelty nil.