EXCISE DUTY

 

 

 

Introduction to Central Excise

 

1. Central Excise duty is an indirect tax levied on goods manufactured in India. The tax is administered by the Central Government under the authority of Entry 84 of the Union List (List 1) under Seventh Schedule read with Article 226 of the Constitution of India. The Central Excise duty is levied in terms of the Central Excise Act, 1944 (http://www.cbec.gov.in/excise/cx-act/cx-act-idx.html) and the rates of duty, ad valorem or specific, are prescribed under the Schedule I and II of the Central Excise Tariff Act, 1985 (http://www.cbec.gov.in/excise/cx-tariff0708/cxt0708-idx.html). The taxable event under the Central Excise law is ‘manufacture’ and the liability of Central Excise duty arises as soon as the goods are manufactured. The Central Excise Officers are also entrusted to collect other types of duties levied under Additional Duties (Goods of Special Importance) Act, Additional Duties (Textiles and Textiles Articles) Act, Cess etc. The procedures in this regard are laid down in the Central Excise Rules, 2002 (http://www.cbec.gov.in/excise/cx-rules-2002.html)

 

Administration of Central Excise

2.1        The Central Excise law is administered by the Central Board of Excise and Customs       (http://www.cbec.gov.in/whoweare/whoweare.html) through its field offices, the Central Excise Commissionerates. For this purpose, the country is divided into 23 Zones and a Chief Commissioner of Central Excise heads each Zone. There are total 93 Commissionerates in these Zones headed by Commissioner of Central Excise. Divisions and Ranges are the subsequent formations, headed by Deputy/Assistant Commissioners of Central Excise and Superintendents of Central Excise, respectively. The CBEC issues various circulars and instructions to clarify procedural matters and ensure uniformity in practices (http://www.cbec.gov.in/excise/cx-circ-mainbott.html )

 

Sl. No.

Subject

Website Link

1

PROCEDURE FOR REGISTERATION http://www.cbec.gov.in/excise/cx-manual/manual/chap2_part1.htm#ch2_p1_2

2

ASSESSMENT OF DUTY http://www.cbec.gov.in/excise/cx-manual/manual/chap3_part1.htm#ch3_p1_1

3

MANNER OF PAYMENT OF DUTY

http://www.cbec.gov.in/excise/cx-manual/manual/chap3_part5.htm#ch3_p5_1

4

MAINTENANCE OF RECORDS http://www.cbec.gov.in/excise/cx-manual/manual/chap6_part1.htm#ch6_p1_1

5

EXCISE INVOICE http://www.cbec.gov.in/excise/cx-manual/manual/chap4_part1.htm#ch4_p1_1

6

FILING OF RETURNS http://www.cbec.gov.in/excise/cx-manual/manual/chap6_part2.htm#ch6_p2_1

7

COMPOUNDED LEVY http://www.cbec.gov.in/excise/cx-manual/manual/chap12_part3.htm#ch12_p3_1

8

RETURN OF GOODS http://www.cbec.gov.in/excise/cx-manual/manual/chap18_part4.htm#ch18_p4_1

9

REFUND OF DUTY http://www.cbec.gov.in/excise/cx-manual/manual/chap9.htm#ch9_1

10

REBATE OF DUTY http://www.cbec.gov.in/excise/cx-manual/manual/chap8.htm#ch8_1

11

EXPORT WITHOUT PAYMENT OF DUTY http://www.cbec.gov.in/excise/cx-manual/manual/chap7_part1.htm#ch7_p1_1

12

CENVAT CREDIT http://www.cbec.gov.in/excise/cx-manual/manual/chap5.htm#ch5_1

13

SSI EXEMPTION http://www.cbec.gov.in/excise/cx-act/notfns-2k3/ce8-2k3.htm

14

WAREHOUSING http://www.cbec.gov.in/excise/cx-manual/manual/chap10_part1.htm#ch10_p1_1

15

DEMAND NOTICE/SHOW CAUSE NOTICE http://www.cbec.gov.in/excise/cx-manual/manual/chap13_part1.htm#ch13_p1_1

16

EXCISE AUDIT - 2000 http://www.cbec.gov.in/excise/cx-manual/manual/chap15.htm#ch15_1

17

APPEALS http://www.cbec.gov.in/excise/cx-manual/manual/chap16.htm#ch16_p1_1

 

 

3.Large Taxpayer Unit (LTU),

Large Taxpayer Units have been setup as a self contained tax office under the Department of Revenue to act as a single window clearance point for all matters relating to Central Excise, Income Tax/ Corporate Tax and Service Tax. Presently, there are four LTUs functioning in Bangalore, Chennai, Delhi and Mumbai. Further information on the eligibility criteria, procedures, notification, contact details etc, may be sought

from the following links(http://www.ltu.gov.in/index1.htm)

Central Excise Tariff 2007