https://www.taxtmi.com/caselaws?id=42829 Excise duty attaches to manufacture, and subsequent alteration of the goods does not erase the liability. Where sound cloth was cut into shorter pieces and marked as rags to avoid duty, the goods retained their true character as manufactured cloth, and the attempt to describe them as rags was ineffective. The contention that duty could arise only on removal from the factory was rejected because the levy is triggered by manufacture, even if recovery may occur at clearance. The demand and penalties were therefore sustained against the manufacturer. en-us Tue, 12 Sep 1989 00:00:00 +0530 Mon, 14 Jun 2010 15:37:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=42829 Excise duty attaches to manufacture, and subsequent alteration of the goods does not erase the liability. Where sound cloth was cut into shorter pieces and marked as rags to avoid duty, the goods retained their true character as manufactured cloth, and the attempt to describe them as rags was ineffective. The contention that duty could arise only on removal from the factory was rejected because the levy is triggered by manufacture, even if recovery may occur at clearance. The demand and penalties were therefore sustained against the manufacturer. Case-Laws Central Excise Tue, 12 Sep 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=42829