The union budget/ finance bill 2016 has introduced the levy of central excise duty on the readymade garments and made up articles of textiles falling under chapters 61, 62 and 63 (heading nos 6301 to 6308) of the central excise tariff except those falling under 6309 and 6310 by withdrawing the. Although sometimes referred to as a tax, excise is specifically a duty tax is technically a levy on an individual (or more accurately, the assessment of what that amount might be), while duty is a levy. Section 5a(1) provides that the central government is empowered to exempt in the public interest, any excisable goods from the levy of whole or any part of excise duty such exemption may be granted either absolutely or subject to such conditions, as may be specified in the notification. Central board of excise and customs (cbec) is a part of the department of revenue under the ministry of finance, government of india it deals with the tasks of formulation of policy concerning levy and collection of customs & central excise duties and service tax, prevention of smuggling and administration of matters relating to customs, central excise, service tax and narcotics to the.
In india, excise duty is levied in accordance with the provisions of central excise act, 1944it is the basic act which lays down the law relating to levy and collection of central excise duty. Excise duty 1 central excise -definition the collection of revenue and the regulation of trade is almost as old as civilization itselfthe british administration had introduced a codified system of levy and collection of central excise duties by introducing the central excises and salt act in 1944 presently central excise duty is leviable on every item manufactured in india. Levy and collection of duty : section 3(1 ) of the central excise act ,1944 is the charging section and it states that – there shall be levied and collected in such manner as prescribed : (a ) a duty.
Basic - excise duty, imposed under section 3 of the 'central excises and salt act' of 1944 on all excisable goods other than salt produced or manufactured in india, at the rates set forth in the schedule to the central excise tariff act, 1985, falls under the category of basic excise duty in india. The letter to clarify the increase in the ad valorem excise duty rate was published 1 april 2018 - sugary beverages levy implementation the sugary beverages levy (sbl) is a new health promotion levy in support of the department of health’s deliverables to decrease diabetes, obesity and other related diseases in south africa. 1 our investment in machinery increased from five crore to 25 crore in last year ( hence we not covered under ssi) 2 our turnover in chapter 7 is more than 10 crore but excise duty is at nil rate, in previous year 3 our turnover in chapter 20 and 21 is less than 4 crore in previous year on which. General - central excise duty is renamed as central value added tax (cenvat) wef 1252000 basic concepts basic pre-requisites for levy of central excise duty - in order to acquire basic working knowledge in relation to law on central excise, understanding of some of the basic concepts of central excise would be very much essential. The legal framework around excise duty is majorly governed by the two acts- central excise act, 1944 central excise tariff act, 1985 the two acts underline the laws related to the levying of excise duty that extends to the whole of india.
Central excise act 1944, chapter-ii, levy and collection of duty, valuation of excisable goods, charging duty of excise, valuation of excisable goods, retail sale price, remission of duty on goods, deficient in quantity, power to grant exemption, registration of certain persons, restriction on possession of excisable goods, offences and penalties, offences by companies, powers of court. Central excise : section 3a of the central excise act, 1944 - charge/levy - excise duty based on production capacity - in case of duty based on. The central excise act, 1944 this act governs the levy of excise duty the legislation provides for the parameters for levy of duty like when it is to be charged, how the goods are to be valued for the purpose of duty, how the duty would be regulated and administered such as provisions for discharge of excise liability, filing returns, powers. Central excise duty is a form of tax that is indirectly applicable to goods or products that are manufactured or produced within india these goods are specifically created. Central board of excise and customs (cbec) is a part of the department of revenue under the ministry of finance, government of india it deals with the tasks of formulation of policy concerning levy and collection of customs & central excise duties and service tax, prevention of smuggling and administration of matters relating to customs.
Central excise central excise is a levy on manufacture of goods the event attracting levy of central excise is manufacture of goods though excise duty is payable on removal of. Requirements for levy of excise duty central excise is a tax on act of manufacture or production excise duty is collected at the time of removal of the goods from the factory the central excise duty can be imposed on any article if it is satisfied the following requirements. Commissioner of central excise vs m/s grasim industries ltd (supreme court of india) it was held that measure of the levy contemplated in section 4 of the act will not be controlled by the nature of the levyso long a reasonable nexus is discernible between the measure and the nature of the levy both section 3 and 4 would operate in their respective fields as indicated above. Levy and collection of excise duty for dealer under central excise act, 1944 excise duty or duty of excise is a tax on goods produced or manufactured in india and intended for home consumption ie, sale in india.
Central excise 1 levy of excise duty the power to levy a duty of excise on goods manufactured or produced in india derives its authority from entry 84 of the union list (list i) of seventh schedule read with article 246 of the constitution of india thus, central excise is a tax on the ‘act. Central excise duty is an indirect tax levied on those goods which are manufactured in india and are meant for home consumption the taxable event is 'manufacture' and the liability of central excise duty arises as soon as the goods are manufactured. The central excise department spread over the entire country administers and collects the central excise duty the apex body that is responsible for the policy and formulation of connected rules is the central board of excise and customs which functions under the control of the union finance ministry. Thus, insofar as the levy of excise duty on cigarette at enhanced rates, as contemplated in the amendments moved on 08052012, is concerned, the amended provisions will have effect only from the date of assent of president ie from 28052012.
(ii) special excise duty: special duty of excise is levied under 3(1)(b) of the central excise act it is levied on the commodities covered in second schedule (eg pan masala, cars) to the central excise. Under central excise law the levy of duty is on the taxable event of manufacture of excisable goods however the collection of duty is made at the point of removal of the manufactured goods from the place of removal to consider whether levy of central excise duty is attracted, one has to fulfill the following four conditions:.
Excise duty on cars is also levied at the time of manufacturing the rate of excise duty on cars is decided by the central govt and is the same across india the rate of excise duty on cars is decided by the central govt and is the same across india. Central excise levy has on readymade garments falling under chapter 62 of the first schedule of the central excise tariff act, 1985 in the budget, 2001, the readymade garments, brand name, rate of duty on readymade garments is at the rate of 16% ad valorem. About excise duty an excise duty is a type of indirect tax that is levied on the sales of particular goods this tax is not paid directly by the customer but is passed on to the consumer by a merchant or producer of goods as a part of the price of the product.