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Pooja, Lovely Professional Univrsity Unit 2: Central Excise Duty

Unit 2: Central Excise Duty Notes

CONTENTS
Objectives
Introduction

2.1 Definition and Concepts of Central Excise Duty
2.1.1 Factory
2.1.2 Goods

2.1.3 Manufacture or Production
2.1.4 Manufacturer
2.2 Excise Ability and Manufacture
2.2 Procedure for Central Excise Registration and grant of Registration Certificate
2.4 Summary

2.5 Keywords
2.6 Review Questions
2.7 Further Readings

Objectives

After studying this unit, you should be able to:
 Know about Central Excise Duty
 Understand different Kinds of Excise Duty
 Know about Excise ability and Manufacture

 Describe valuation under Central Excise.

Introduction

Central Excise duty is an indirect tax which is levied and collected on the goods/commodities
manufactured in India. Generally, manufacturer of commodities is responsible to pay duty to
the Government. This indirect taxation is administered through an enactment of the Central
Government viz., The Central Excise Act, 1944 and other connected rules- which provide for
levy, collection and connected procedures. The rates at which the excise duty is to be collected
are stipulated in the Central Excise Tariff Act, 1985. It is mandatory to pay Central Excise duty
payable on the goods manufactured, unless exempted e.g.., duty is not payable on the goods
exported out of India. Further various other exemptions are also notified by the Government
from the payment of duty by the manufacturers.

2.1 Definition and Concepts of Central Excise Duty

Central Excise Law is levied on manufacturer or production of goods. The liability of paying the
central excise is on the manufacturer. So let us examine the concept and definitions of goods,
manufacture and manufacturer in detail.

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