TaxTMI 
TaxTMI 
Treatment of wastage
17 Feb 2007 
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Wastage liability: marketable manufacturing residues attract excise duty, while non marketable moisture or dust losses do not.
Marketable residues from gutkha manufacturing are subject to excise duty; non marketable losses such as dust, moisture loss, evaporation or spread during processing are not treated as goods and do not attract excise. No formal norms for permissible wastage have been fixed, making marketability the determining factor for liability. (AI Summary)
Marketable residues from gutkha manufacturing are subject to excise duty; non marketable losses such as dust, moisture loss, evaporation or spread during processing are not treated as goods and do not attract excise. No formal norms for permissible wastage have been fixed, making marketability the determining factor for liability. (AI Summary)
wastage in manufacturing process of gutkha