Central Excise Act

Central Excise is a duty on excisable goods manufactured or produced in India, other than alcoholic liquor.

Central excise duty liability is principally on ‘manufacturer’, except in a few cases. In the majority of cases, duty rate w.e.f. 24.2.09 is 10% plus education cess of 2% and Secondary and Higher Education Cess of 1%. Thus, generally, duty is 12.36%.
There are some exclusions, partial or full exemptions and higher duties in some cases. As per Appendix IV of CETA, the rate of additional duty on Goods of special Importance is 8% in the majority of the cases. (Section 3(1) of The Additional Duties of Excise (Goods of Special Importance) Act, 1957.

We will be discussing the below topics under the Central Excise Act, 1944

Appeals

Excise and Customs Law empower excise/customs officers to pass adjudication orders demanding duty and interest and imposing penalty and confiscation ...
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Demands and Penalties

• If duty is short paid or not paid or erroneously refunded, show cause notice can be issued u/s 11A(1) ...
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Other procedure in Central Excise

Some procedures are basic, which every assessee is required to follow. Besides, some procedures are required to be followed as ...
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Excise on small scale industries

Small Scale Industries The contribution of Small Scale Sector in the industrial growth of the Indian economy and to the ...
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Export benefits and procedures

Export benefits and incentives In order to boost exports from India various incentives and benefits have been allowed inter alia ...
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Warehousing under Custom

Facility of warehousing of excisable goods without payment of duty has been provided in respect of the specified commodities by ...
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Assessment under Central Excise Law

The expressions ‘assessment’ and ‘assessee’ have been defined in the Central Excise Rules, 2002. Assessment, as per Rule 2(b), includes ...
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Refund and other important Provisions

Refund of excise duty • Assessee can claim refund of duty within one year from relevant date u/s 11B, in ...
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MRP based valuation

Same product partly sold in retail and partly in wholesale - CBE&C has further clarified in circular No. 737/ 53/2003-CX ...
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Valuation in case of Job work – Rule 10A

MEANING OF JOB WORKER Job-worker means a person engaged in the manufacture or production of goods on behalf of a ...
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Valuation of Goods under the Central Excise Act

Excise duty is payable on one of the following basis : • Duty based on production capacity - Some products ...
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Central Excise Tariff Act Interpretation rules

The Central Excise Tariff Act, 1985 incorporates FIVE Rules of interpretation, which together provide necessary guidelines for classification of various ...
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Harmonised system of nomenclature

All goods are classified using 4 digit system. These are called ‘headings’. Further 2 digits are added for subclassification, which ...
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Classification of Goods under Central Excise Act

Central Excise Duty is chargeable on the goods, which are manufactured in India and are subject to excise duty. However, ...
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Manufacturer under the Central Excise Act

Manufacturer is the person who actually brings new and identifiable product into existence. • Duty liability is on manufacturer in ...
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Manufacture under the Central Excise Act

Any Taxable event for central excise duty is manufacture or production in India. The word ‘produced’ is broader than ‘manufacture’ ...
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Excisable Goods under Central Excise Act

• Section 2(d) of Central Excise Act defines Excisable Goods as ‘Goods specified in the First and the Second Schedule ...
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Goods under Central Excise Act

Goods It is obvious from section 3(1) that, to attract excise duty, the following conditions must be fulfilled : • ...
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Levy, Collection & Exemption from Excise Duty

Taxable Event : Excise duty is leviable on all excisable goods, which are produced or manufactured in India. Thus, manufacture ...
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Laws Relating to Central Excise

Central Excise Act, 1944(CEA) : The basic Act which provides the constitutional power for charging of duty, valuation , powers ...
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The power of Taxation under Constitution of India is as follows:

(a) The Central Government gets tax revenue from Income-tax (except on Agricultural Income), Excise (except on alcoholic drinks) and Customs.

(b) The State Governments get tax revenue from sales tax, excise from liquor and alcoholic drinks, tax on agricultural income.

(c) The Local Self Governments e.g. municipalities, etc. get tax revenue from entry tax and house
property tax. Article 265 provides that no tax shall be levied or collected except by authority of Law. The authority for levy of various taxes, as discussed above, has been provided for under Article 246 and the subject matters enumerated under the three lists set out in the Schedule-VII to the Constitution.

List I: Union List

Item No. 82 Tax on income other than agricultural income
Item No. 83 Duties of customs including export duties
Item No. 84 Duties of excise on tobacco and other goods manufactured or produced in India except alcoholic liquors for human consumption, opium narcotics, but including medical and toilet preparations containing alcohol, opium or narcotics
Item No. 85 Corporation Tax
Item No. 92A Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of interstate trade or commerce.
Item No. 92B Taxes on consignment of goods, where such consignment takes place during interstate trade or commerce.
Item No. 92C Taxation of Services
Item No. 97 Any other matter not included in the List II, List III and any tax not mentioned in List II or List III

List-II i.e. the State List

In respect of which the State Government has exclusive powers to levy taxes, are as follows:

Item No. 46 Taxes on agricultural income
Item No. 51 Excise duty on alcoholic liquors, opium and narcotics
Item No. 52 Tax on entry of goods into a local area for consumption, use or sale therein (usually called as Octroi)
Item No. 54 Tax on sale and purchase of goods other than newspapers except tax on interstate sale or purchase

List-III : Concurrent List — List III of Seventh Schedule, called “concurrent list”, includes matters where both Central Government and State Government can make laws.