Tag: Excise

Overview and definition under Cenvat Credit Rules, 2004

  Rule No. Brief Comments 2(d) ‘Exempted goods’ means goods which are exempt from whole of duty of excise leviable thereon and includes goods which are chargeable to ‘Nil’ rate of duty. 2(e) “Exempted services” means taxable services which are exempt from the whole of the service tax leviable thereon, and includes services on which …

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Background of Cenvat Credit

Excise and Service tax are central taxes, expected to be consumption based taxes to the extent practicable. Till the goods or service is finally consumed, the burden of excise duty and service tax is passed on to next buyer, who gets credit of the tax and excise duty paid by the supplier/ service provider. Thus, …

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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 products under the schedule. Rules for Interpretation of Schedule to Tariff are given in the Tariff itself. These are termed as ‘General Interpretative Rules’ (GIR). GIR (General Interpretative Rules) are to be applied for interpretation …

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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 are termed as ‘sub-headings’. Further 2 digits are added for sub-sub-classification, which is termed as ‘tariff item’. Rate of duty is indicated against each ‘tariff item’ and not against heading or subheading. Harmonised System of …

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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, all goods cannot be charged with the same rate of duty. Therefore, the goods need to be grouped into separate categories and sub-categories, for which the rate of excise duty may be determined.This identification of …

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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 most of the cases. • Mere supplier of raw material or brand name owner is not ‘manufacturer’. • Loan licensee is not ‘manufacturer’. Loan licensee can be treated as manufacturer only if the manufacture is …

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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’ and covers articles produced naturally, live products, waste, scrap etc. Manufacture means to make, to inset, to fabricate, or to produce an article by hand, by machinery or by other agency. To manufacture is to …

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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 to Central Excise Tariff Act, 1985 as being subject to a duty of excise and includes salt. As per explanation to section 2(d), ‘goods’ includes any article, material or substance which is capable of being …

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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 : • There should be goods; • The goods must be excisable; • The goods must be manufactured or produced; and • The manufacture or production must be in India. Goods manufactured or produced in SEZ are …

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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 or production in India’ of an excisable goods is a ‘taxable event’ for Central Excise. It becomes immaterial that duty is levied and collected at a later stage i.e. at the time of removal of …

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