HOW MANY STAGE OF FINAL PRODUCT

[RAM SHARMA]

Dear Experts,

How many stage should be complete to treat as a final product in excise point of view. Can we consider one or two process is sufficient to treat as a final product. Pl. elaborate.

Thanks

 

[YAGAY andSUN]

It would be defined only by the Assessee that whether a product is rawmaterial, semi finished or finished goods.  Your finished goods, may be for others, can be  Semi finished or Raw material.

Further, it would also depend on the nature of a particular product.

AI Summary

Product classification depends on the assessee's determination and the product's nature for excise treatment status. Whether an item constitutes a final product for excise purposes depends on the taxpayer's designation as raw material, semi finished or finished and on the factual nature of the article; goods treated as finished by one person may be semi finished or raw material for another.