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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 goods from
the place of manufacture. The removal of goods from the place of manufacture may or
may not be a sale. Central Excise duty is required to be paid even if goods are removed
from the place of manufacture for free distribution, or personal consumption or
consumption in other unit of the same manufacturer.
The Central Excise Act, 1944 contains the provisions about the levy, collection, &
assessment, of duty, Valuation of goods for the purpose of charging of duty, powers &
duties of Central Excise officers, Advance Rulings, Settlement of cases, Appeals &
adjudication of confiscations & penalties.
Section 37 of The Central Excise Act, 1944 empowers the Central Government to issue
Rules for procedures to be adopted by Central Excise officers for levy & Collection of
duty & procedures to be followed by manufactures for production, storage & removal of
goods , valuation of goods, availing the benefit of cenvat credit & payment of duty.
In exercise of powers granted by the 37 of The Central Excise Act, 1944 Government has
issued following Rules, the knowledge of which is as much important if not more than
The Central Excise Act, 1944 :-
Central Government also issues notification from time to time to amend the Central
Excise Rules, to effect any change in rate of duty, exemption from payment of duty
subject to conditions as it may find fit to impose.
The Central Excise Tariff Act, 1985 contains rate of duty applicable in respect of
particular product. It has 96 chapters which are classified according to various categories
of goods.
There are about 75 general exemption notifications issued by Central Government which
gives full or partial exemption from payment of duty subject to condition imposed in the
notification.
Apart from this there are various trade notices, ministerial circular, departmental
circulars, notices issued by various comisionerates clarifying the provisions of central
excise contained in Act, Rules & notifications.