• 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 bought and sold for a consideration and such goods shall be deemed to be marketable’. Thus, unless the item is specified in the Central Excise Tariff Act as subject to duty, no duty is leviable.
In terms of the above definition of ‘Excisable Goods, it may be held that all those goods, which are specified in the Tariff Schedule are ‘excisable goods’. However, the question arises as to whether those goods, which are exempted from duty by a notification but find a place in the tariff schedule are excisable goods.
By analyzing the definition, the following two important ingredients of excisable goods are found:
(a) Goods must be specified in the Schedule to the Central Excise Tariff Act, 1985;
(b) The goods so specified must be subject to duty.
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