A rotary label die cutting apparatus and process comprises a servo motor driving either a rotary die cutter or its backup roll, preferably the latter, a servo motor driven roll pulling a web carrying uncut label under the die cutter and an electronic processor controlling the relative position and speeds of the die cutter and web through commands to the servo motors with the apparatus including a sensor for observing eye marks on the web and the angular position of the die roll with the apparatus having the unique ability to control the cutting action while the cutting is taking place. to cut labels of different lengths from one die and then return to a home position to await commands for cutting a second label.