Dear Sir,
We are manufacturers of electroplating chemicals and equipments. We purchased a meter long cloth and cut into pieces of 3 diameter. Now, this pieces of cloth are to be sent to diamond industries as it is for purification of metals at their unit situated at sez which falls under municipality area. My question is;
1) does cutting of meter long clothes amounts to manufacture,
2) does octroi charges will be levied for this sale,
3) since it is to sent to sez, should we prepare A.R.E.1.
Please give me the reply as soon as possible.
Cutting Cloth Not Manufacturing Under Central Excise Act, 1944; Clarification on Octroi and A.R.E.1 for SEZ. A manufacturer of electroplating chemicals and equipment inquired about whether cutting a meter-long cloth into smaller pieces constitutes manufacturing under the Central Excise Act, 1944. They also questioned the applicability of octroi charges and the necessity of preparing A.R.E.1 for sending goods to a Special Economic Zone (SEZ). A respondent clarified that cutting the cloth does not amount to manufacturing since it does not create a new form or quality, as defined by the Act. The original poster expressed gratitude for the response. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
