Central Excise Act, 1944(CEA) : The basic Act which provides the constitutional power for charging of duty, valuation , powers of officers, provisions of arrests, penalty, etc.
Central Excise Tariff Act, 1985 (CETA): This classifies the goods under 96 chapters with specific codes assigned.
Central Excise Rules, 2002: The procedural aspects are laid herein. The rules are implemented after issue of notification.
Central Excise Valuation(Determination of Price of Excisable Goods) Rules,2000: The provisions regarding the valuation of excisable goods are laid down in this rule.
Cenvat Credit Rules, 2004: The provisions relating to Cenvat Credit available and its utilisation is mentioned.
The duty of Central Excise is levied if the following conditions are satisfied :
(1) The duty is on goods.
(2) The goods must be excisable.
(3) The goods must be manufactured or produced
(4) Such manufacture or production must be in India.
• Basic Excise Duty is levied u/s 3(1) of Central Excise Act. The section is termed as ‘charging section’.
General rate of duty of central excise on non-petroleum products is 10% w.e.f. 27-02-2010. (The duty rate was 14% during 1-3-2008 to 6-12-2008, which was reduced to 10% w.e.f. 7-12-2008 and to 8% w.e.f. 24-02-2009).
This duty is applicable to majority of excisable goods. There is partial exemption to a few products.
• Education Cess @ 2% of excise duty under section 93 of Finance (No. 2) Act (w.e.f. 9-7-2004).
• Secondary and Higher Education Cess (S&H Education Cess) @ 1% of the total duties of excise vide section 136 read with section 138 of Finance Act, 2007 w.e.f. 1-3-2007.
Thus, total excise duty is 10.30% in majority of the cases.
National Calamity Contingent Duty – A ‘National Calamity Contingent Duty’ (NCCD) has been imposed vide section 136 of Finance Act, 2001 on some products. NCCD of 1% has been imposed on mobile phones w.e.f. 1-3-2008.
In addition, cesses and duties have been imposed on some specified products