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         Types of Excise Duty
 

Nature 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 month:

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
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