Matter given below is the compilation of the P.P.T. presented during my class for Taxation-IPCC (CA) but it is useful for CS and CMA examination also. Students who are preparing for the professional examination like CA, CMA, CS etc can be benefited as these are compiled through study material and some other books for the students. All the best for examination.
Central Excise Law
Central Excise Law is a combined study of:
1. Central Excise Act (CEA), 1944;
2. Central Excise Tariff Act (CETA), 1985;
3. Central Excise Rules, 2002; and
4. CENVAT Credit Rules, 2004
è
Applicability:- Whole of India
including Jammu & Kashmir
è
its application was extended to the J&K vide the enactment of Taxation Laws (Extension to Jammu & Kashmir) Act, 1954
è
It also extends to designated areas in the Continental Shelf and Exclusive Economic Zone of
India (EEZ). The EEZ extends upto 200 nautical miles inside the sea from base line.
è
Derived from the Latin word "Excisum/Excidere” => “to cut out”
Duty of
Excise is known as “Central Value Added Tax” (CENVAT).
Although excise started as a pure duty on manufacturing activity, over a period of time it has
included deemed manufacture and became a value added tax.
Type Of
Duty
Type of Duty
|
Particular
|
(1) Basic Excise
Duty (BED)
|
As per sec-2A
of CEA, It is Known as CENVAT also. It is levied at rate prescribed in
Schedule First of CETA. General
rate is @12%
|
(2) Special Excise Duty
(SED)
|
It is levied at rate
prescribed in Schedule Second of CETA.
|
(3) National
Calamity Contingent Duty (NCCD)
|
Imposed vide Finance
Act 2001, presently branded tobacco, cigarettes, pan masala containing
tobacco, domestic crude oil mobile phones are covered. Rate @1%
|
Duties Under Other Acts
|
|
(1) Additionally Excise
Duty on Pan masala & Tobacco products
|
By way of surcharge
vide clause 85 of FA 2005 w.e.f. 1-3-2005. @10 of aggregate normal rate of ED
|
(2) Duty on medical
& toilet preparations
|
Duty imposed under
Medical & Toilet preparations (Excise Duties) Act 1955
|
(3) Additional duty on
mineral products
|
Mineral
products like motor sprit, kerosene, diesel, & furnace oil liable under
Mineral Products (additional Duties of Excise and customs Act 1958
|
Cesses
Cess is levied &
collected for specific purpose while duty is charged for general revenue of
Govt.
|
(1) On Automobile U/S 9(1)
of IDRA
(2) On Tractor under
Tractor Cess Rules 1992 @1/8% of Ad Valorem
(3) On Biri under Beedi
workers Cess Act 1976 @Rs.5 per 1000 Biris
(4) On jute manufacturers
under Jute Manufacturers cess Act 1984
(5) On Sugar
@Rs.2424/quintal U/S 3 of Sugar cess Act
(6) On tea under Tea act
1953 for tea Board
(7) On Tobacco @Re 0.01 per
kg under Tobacco cess Act 1975
(8) On coffee under Coffee
Act 1942
(9) On paper & paper
board @1/8% of Ad Valorem
(10) Similarly cess is
levied on rubber ,iron ore mines, manganese ore mines ,Mica etc under
different Acts, cess on energy also.
(11)
Education Cess: It is levied
@ 2% of the
aggregate
duties of excise levied on such goods.
(12) Secondary
and Higher Education ces;s: It is levied @ 1% of the aggregate duties
of excise (excluding education cess).
|
Source Of Law
Central Excise Act, 1944 : (CEA)
Ø It contains the basic
provisions relating to the levy of excise duty.
Ø Comprising Chapters I to VII.
Central Excise Tariff
Act, 1985:
Ø Originally
it was a schedule to the CEA
Ø The Central Excise Tariff, Act 1985 containing
the Tariff Schedule was enacted, based
on the international product coding system called Harmonised System of
Nomenclature (H.S.N.).
Ø The Schedules to the Act enlist all the
excisable goods and provide for the corresponding rates of excise duty.
Ø All excisable goods are
given schedule
Ø Rate of excised duty is against these goods in
the schedule.
Indirect Taxes By CA.
CK.Bajpai
Union Finance Acts:
Ø Every year, the Finance
Minister presents the Union Budget to the Parliament.
Ø Part A of the Budget-> contains the
proposed policies of the Government in fiscal areas.
Ø Part B of the Budget->
contains the detailed tax proposals.
Ø To implement these
proposals, the Finance Bill is introduced in the Parliament.
Ø Once the Finance Bill is approved by the
Parliament and gets the assent of the President, it becomes the Finance Act.
Purpose:- It is most
significant way through which the Government makes amendments
to the central tax acts (direct Tax & Indirect Tax both) like the Central
Excise Act and Central Excise Tariff Act.
Rules:
Ø Framed by the Central Government
Ø For carrying out the provisions of the
Act.
Ø Rules cannot override the provisions contained
in the Act.
Ø Rules should be read with the statutory
provisions contained in the Act.
Indirect Taxes By CA.
CK.Bajpai
The following significant
rules have been issued under the Central Excise Act, 1944:
•Central Excise Rules,
2002:
Contain the procedure for
the assessment and collection of duty
including other procedures like
manner of payment of duty, registration, maintenance of
records, invoicing, rebate of duty, export without payment of duty etc.
•Central Excise
Valuation (Determination of Price of Excisable Goods) Rules, 2000:
To prescribe valuation
methods when transaction value cannot be determined under Section 4 of the
Central Excise Act. 1944.
• CENVAT Credit Rules,
2004:
They provide for the
manner of availing the credit and the utilization Cenvat duty and service tax across the Goods
& services.
Some Other rules;- Central Excise (Appeal)
Rules, 2001, Central Excise (Advance Rulings) Rules, 2002, Central Excise
(Settlement of Cases) Rules, 2007, Central Excise (Removal of Goods at
Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001,
Central Excise (Compounding of Offences)
Rules 2005, Central Excise (Determination of Retail Sale
Price of Excisable Goods) Rules 2008
Indirect Taxes By CA.
CK.Bajpai
Notifications:
Ø Issued by the Central Government or the
Central Board of Excise and Customs
(CBEC)
Ø Notifications are issued
to provide rules
a)
relating to excise duty,
b)
make amendments therein,
c)
provide or withdraw exemptions from excise duty or
d)
deal with any other matter which the Central Government may think would
facilitate the governance of excise duty.
Circulars/Instructions:
Ø The CBEC issues
departmental circulars or instruction letters for the purpose of ensuring
uniformity in the classification of excisable goods or with respect to levy
of duty of excise on goods.
Ø They should be in
conformity with the Act, Rules and
Notifications.
Ø circulars are binding on
the Department but not binding on the assessee and the Courts (Supreme Court,
High Court or the Tribunal. )
Indirect Taxes By CA.
CK.Bajpai
Trade
Notices/Clarifications:
Ø Issued by the Departmental for trade
facilitation and clarification purposes.
Ø Binding on the departmental officers
concerned. Authorities cannot take one stand in one State and another stand in
another State.
Ø Trade notice disseminate the contents of the
notifications and circulars/letters, define their jurisdiction; identify the
banks in which excise duty can be deposited etc.
Case Laws:
Why ?-
It is not possible for
the Parliament to conceive and provide for all possible issues that may arise
in the implementation of any Act. Hence, the judiciary hears the disputes
between the assessee and the Department and
gives decisions on various issues.
Ø The Supreme Court is the Apex Court of the
country and the law laid down by the Supreme Court is the law of the land.
Ø The decisions given by
various High Courts apply in the respective States in which such High Courts
have jurisdiction.
Ø The case laws facilitate in interpreting
the provisions of the Act and comprehending the real intention of the
law makers.