Central Excise-An overview- Manufacture, Excisability,Types of duty, Classification of goods

Central Excise is a type of tax imposed on goods manufactured and produced within a country. It is a form of indirect tax and is administered by the Central Government under the authority of Entry 84 of the Union List (List 1) under Seventh Schedule read with Articles 268 to 281 of the Constitution of India.

1. Manufacture: The term 'manufacture' implies any process or activity that brings about a change in an article or substance, resulting in a new and distinct object with a different name, character, and use. It is the process of producing goods from raw materials. In the context of Central Excise, the term 'manufacture' includes any process that is incidental or ancillary to the completion of a manufactured product.

2. Excisability: Excisability of a product is determined by its inclusion in the Central Excise Tariff Act, 1985. If a product is listed in this Act, it is excisable, and central excise duty is levied on its manufacture.

3. Types of Duty: There are mainly three types of duties under Central Excise.

   • Basic Excise Duty: It is charged under Section 3 of the Central Excises and Salt Act, 1944.
   • Additional Duty of Excise: This is charged under Additional Duties of Excise (Goods of Special Importance) Act, 1957 and Additional Duties of Excise (Textiles and Textile Articles) Act, 1978.
   • Special Excise Duty: As per Section 37 of the Finance Act, 1978, Special Excise Duty is levied on all excisable goods that come under taxation, in line with the Basic Excise Duty under the Central Excises and Salt Act, 1944.

4. Classification of Goods: The classification of goods for the purpose of Excise is done based on the Central Excise Tariff Act, 1985. This Act contains 20 sections, divided into 96 chapters that give a detailed classification of goods.

Remember, the purpose of the Central Excise duty is to levy and collect duties of excise on certain goods. The revenue collected is used for the development and welfare of the country.

Central Excise is a type of tax imposed on goods manufactured or produced in India. It is governed by the Central Excise Act, 1944 and the Central Excise Tariff Act, 1985.

1. Manufacture: The term 'manufacture' implies any process or activity that brings about a change in an article or substance, resulting in a new and distinct object with a different name, character, and use. It includes any process incidental or ancillary to the completion of the manufactured product.

2. Excisability: Excisability of a product is determined by its listing in the Schedule to the Central Excise Tariff Act, 1985. If a product is not listed, it is not excisable. Furthermore, to be excisable, a product must be produced or manufactured in India.

3. Types of Duty: There are two types of duties in Central Excise:

   • Basic Excise Duty: This is levied under Section 3 of the Central Excise Act, 1944. It is charged as a percentage of the value of the goods and varies from product to product.
   • Additional Duty of Excise: This is levied on goods of special importance under Additional Duties of Excise (Goods of Special Importance) Act, 1957.

4. Classification of Goods: The classification of goods is done according to the Central Excise Tariff Act, 1985. The Act has a schedule which provides different tariff rates for different categories of goods. The classification is based on the nature, use, and other specific characteristics of the goods.

This is a brief overview of Central Excise. For detailed information, one should refer to the Central Excise Act, 1944 and the Central Excise Tariff Act, 1985.