whether cutting and packing of textile material is an intermediate process or not?

[Kiran A.]

Dear Sir,

We receive textile material from the manufacturer for job work i.e. cutting and packing. We receive the packing material also from the manufacturer.

As per mega exemption Notification No.25/2012-ST dated 20.06.2012 :

'30. Carrying out an intermediate production process as job work in relation to -

1. agriculture, printing or textile processing;'

Kindly let me know whether the cutting and packing of the textile material is an an intermediate production process in relation to textile processing?

Thanks and regards,

Kiran

AI Summary

Debate Over Textile Cutting and Packing as Intermediate Process Under Central Excise Rules; Impact on Service Tax Clarified. A discussion on whether cutting and packing of textile materials qualifies as an intermediate production process under the Central Excise regulations. The original query references a mega exemption notification regarding job work in textile processing. One respondent argues that these activities are intermediate only if further processing is done by the principal manufacturer. Another respondent clarifies that according to the Central Excise Tariff Act, 1985, cutting and packing do not constitute manufacturing and are therefore subject to service tax, not considered as textile processing.