Treatment of wastage

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wastage in manufacturing process of gutkha

AI Summary

Debate on Excise Duty for Gutkha Manufacturing Wastage: Marketability Key to Tax Liability. No Norms Established Yet. A discussion on the treatment of wastage in the manufacturing process of gutkha addresses whether such wastage is subject to excise duty. One participant argues that wastage from processes like grinding and mixing is not excisable as it does not result in a finished product. Another participant clarifies that excise duty applies only if the wastage is marketable. It is noted that there are no established norms for wastage in the gutkha industry. The consensus is that non-marketable wastage, such as weight loss from moisture or evaporation, is not liable for excise duty.