Excise Duty is Applicable Or Not

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....xcise Duty is Applicable Or Not<br> Query (Issue) Started By: - MAYUR DODIYA Dated:- 2-1-2014 Last Reply Date:- 4-1-2014 Central Excise<br>Got 1 Reply<br>Central Excise<br>Dear Expert, I want to know that Excise Duty is applicable or Not on the following procedure:- Mr X. is producing the following finished Goods:- NAME GRADE 1. Sodium Chloride I.P. (salt) - above 99.5 percent [ Chapter Head....

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....ing no.- 25] 2. Potassium Chloride I.P. - above 99.5 percent [ Chapter Heading no.- 31] 3. Ammonium Chloride I.P. - above 99.5 percent And the following Raw Materials is used:- NAME GRADE 1. Sodium Chloride I.P. (salt) - 98.5 to 99 percent 2. Potassium Chloride I.P. - 98 to 99 percent 3. Ammonium Chloride I.P. - 99 percent Now Mr.X only Purifies the above Raw materials and produce the fin....

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....ished goods. And this above Salt is Purified by Washing Centrifuge & Drying. During purification of Raw Materials there is no change in Chemical Composition or Structure of the materials in the process. Reply By Viswanathan Nemmara: The Reply: For the purpose of making any product excisable to Central Excise duty, it is the upper most requirement that a new product having a different name, chara....

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....cter or use is obtained as a result of the process of manufacture. Mere removing of impurities, does not bring into existence a new product and, therefore, processes undertaken by Mr.X, do not amount to manufacture. This was the view expressed by the Tribunal in the case of S.D. Fine Chem Pvt. Ltd = (1995 (9) TMI 197 - CEGAT, NEW DELHI) [1997 (91) E.L.T. 610 (T)] wherein it has been held that puri....

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....fication of bought out chemicals through distillation or re-crystallisation does not amount to manufacture. This view has been followed by CESTAT (NZB) in Dabur India Ltd (2004 (7) TMI 487 - CESTAT, NEW DELHI) =[2004 (174) E.L.T. 261 (Tri. - Del.)] also.<br> Discussion Forum - Knowledge Sharing ....