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of <h1>Excise Board Clarifies 'Manufacture of Fabric' Includes Embroidery; Exemption Applies to Double/Multiple-Fold Yarn Per Notification 35/96-C.E.</h1> The Central Board of Excise and Customs clarifies the interpretation of 'manufacture of fabric' in Notification No. 35/96-C.E., dated 16-3-1995. The Board addresses concerns that some commissionerates are denying exemptions for double or multiple-fold yarn used in embroidered fabrics, arguing it doesn't constitute 'manufacture of fabrics.' The Board clarifies that 'manufacture of fabrics' encompasses more than just weaving, including processes like knitting, crocheting, and embroidering. Therefore, yarn used for embroidery is considered part of fabric manufacturing, qualifying for exemption under the specified notification.
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