and chargeability of Central Excise duty.
Central Excise duty is an indirect tax levied on goods manufactured
in India. 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 duty, though becomes payable on the
manufacture of goods, is collected periodically as prescribed. The
duty is now actually called the "Central Value Added Tax (CENVAT)
".References to the expressions "duty", "duties",
duty of excise" and "duties of excise" shall be construed
to include a reference to "Central Value Added Tax (CENVAT)
Acts and Rules for the collection of duty of Excise.
The Central Excise duty is collected under the authority of the
Central Excise Act, 1944 at the rates specified in the schedules
to the Central Excise Tariff Act, 1985. In addition to the
duty under the First schedule there is a Special Excise Duty
under the Second Schedule and a few textile items, like fibre,
yarn etc. also attract Additional Excise Duty under Additional Duties
of Excise (Textiles and Textile Articles) Act, 1975. The Additional
Duties of Excise (Goods of Special Importance) Act, 1957 and Miscellaneous
Cess Acts provide authority for collection of Additional Excise
Duty and Cess respectively on several manufactured items over and
above Basic Excise Duty.
Every manufacturer shall discharge his duty liability in respect
of clearances made during the month, by the 5th of the following
Provided that a manufacturer availing the exemption under a Notification
based on value of clearances in a Financial Year may discharge his
duty liability in respect of clearances made during a calendar month,
by 15th day of the succeeding month.
Types of Excise Control
The following types of procedures are being followed by the Central
Excise department for levy and collection of the Central Excise
duties keeping in view the needs of different industrial sectors.
- Physical Control – Applicable only to manufactured
tobacco mainly cigarettes. Assessment is done by Central Excise
Officers and thereafter goods are removed under his supervision
under cover of an invoice countersigned by him.
- Self Assessment Procedure - This was hitherto known as
Self removal procedure, The assessee will himself assess the duty
due on the excisable goods intended to be removed and shall not,
accept as otherwise expressly provided in these rules, remove
such goods unless he has paid the duty so determined.
- Compounded levy scheme – This scheme is meant for
small scale decentralized sector and at present covers mainly
stainless steel, patties/pattas and aluminum circles. Payment
of duty under this scheme absolves the manufacturer from observing
day to day excise formalities regarding maintenance of accounts
and removal of goods etc.
- Collection of duty at the point of consumption –
This duty is confined to Khandsari Molasses. The duty is to be
paid by the procurer of Khandsari Molasses. The Cenvat credit
is admissible on Khandsari Molasses to the extent it is used for
manufacture of dutiable excisable goods.