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Excise duty is imposed on the

  • A.Sale of an item
  • B.Production of an item
  • C.Consumption of an item
  • D.All of above

Answer: B

Excise duty is imposed on the production of an item.

It attaches at manufacture, whatever happens to the goods afterwards - which distinguishes it from sales tax, levied on sale, and customs duty, levied on import or export. Most union excise was subsumed into GST in 2017.

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