dyeing /proceessing unit - excise

[satbir singhwahi]

Whether dyeing/processing of knitted fabric unit , is subject to excise duty.

[YAGAY andSUN]

facts are too short to comment.  However, if any new item doesnot come to existence then there would not be any levy of Central Excise Duty.

AI Summary

Excise duty on processing depends on whether a new excisable item is produced after dyeing or processing. Dyeing or processing of knitted fabric is subject to excise duty only if the operation produces a distinct new excisable item; mere alteration of the fabric without creation of a new article does not constitute a taxable manufacturing outcome and thus does not attract excise duty.