Central Excise (India)
Encyclopedia
Central Excise is a central government department which is administered by the Central Board of Excise and Customs
. The Chairman, CBEC is the administrative head of the department exercising jurisdiction over entire India. The chairman reports to the Union Finance Minister.
The Chairman is assisted by 5 Board Members in discharging his duties.
Agencies of Central Excise and Customs
• Directorate of Central Excise Intelligence
• Directorate of Revenue Intelligence
• Directorate of Inspection
• Directorate of Vigilance
• Central Revenues Control Bureau
• Directorate of Audit
• Directorate of Logistics
• Directorate of Service Tax
• Directorate General of Export
Departments Attached with CBEC
• Central Bureau of Investigation
• Central Bureau of Narcotics
• SEBI
• Directorate General of Economic Enforcement
• Central Economic Intelligence Bureau
• Narcotics Control Bureau
• Financial Intelligence Unit
The Central Excise Officers are also entrusted to collect other types of duties levied under Additional Duties (Goods of Special Importance) Act, Additional Duties (Textiles and Textiles Articles) Act, Cess etc.
Till 1969, there was physical control system wherein each clearance of manufactured from the factory was done under the supervision of the Central Excise Officers. Introduction of Self-Removal procedure was a watershed in the excise procedures. Now, the assessees were allowed to quantify the duty on the basis of approved classification list and the price list and clear the goods on payment of appropriate duty.
In 1994, the gate pass system gave way to the invoice-based system, and all clearances are now effected on manufacturer’s own invoice. Another major change was brought about in 1996, when the Self-Assessment system was introduced. This system is continuing today also. The assessee himself assesses his Tax Return and the Department scrutinises it or conducts selective audit to ascertain correctness of the duty payment. Even the classification and value of the goods have to be merely declared by the assessee instead of obtaining approval of the same from the Department.
In 2000, the fortnightly payment of duty system was introduced for all commodities, an extension of the monthly payment of duty system introduced the previous year for Small Scale Industries.
In 2001, new Central Excise (No.2) Rules, 2001 have replaced the Central Excise Rules, 1944 with effect from 1 July 2001. Other rules have also been notified namely, CENVAT Credit Rules, 2001, Central Excise Appeal Rules, 2001etc. With the introduction of the new rules several changes have been effected in the procedures. The new procedures are simplified. There are less numbers of rules, only 32 as compared to 234 earlier. Classification declaration and Price declarations have also been dispensed with, the CENVAT Declaration having been earlier dispensed with in 2000 itself.
For enforcing the central excise law and collection of Central Excise duty the following types of procedures are being followed by the Central Excise Department:
Central Board of Excise and Customs
The Central Board of Excise and Customs is the national agency responsible for administering customs and excise in India.The Customs & Excise department was established in the year 1855 by the then British Governor General of India, to administer customs laws in India and collection of import...
. The Chairman, CBEC is the administrative head of the department exercising jurisdiction over entire India. The chairman reports to the Union Finance Minister.
The Chairman is assisted by 5 Board Members in discharging his duties.
Introduction
The Central Board of Excise and Customs is the national agency responsible for administering Customs and Excise Laws in India. All administrative posts are manned exclusively by Indian Revenue Service officers.Agencies of Central Excise and Customs
• Directorate of Central Excise Intelligence
• Directorate of Revenue Intelligence
• Directorate of Inspection
• Directorate of Vigilance
• Central Revenues Control Bureau
• Directorate of Audit
• Directorate of Logistics
• Directorate of Service Tax
• Directorate General of Export
Departments Attached with CBEC
• Central Bureau of Investigation
• Central Bureau of Narcotics
• SEBI
• Directorate General of Economic Enforcement
• Central Economic Intelligence Bureau
• Narcotics Control Bureau
• Financial Intelligence Unit
History
The Central Excise duty is levied in terms of the Central Excise Act, 1944 and the rates of duty, ad valorem (on value) or specific, are prescribed under the Schedule I and II of the Central Excise Tariff Act, 1985. The taxable event under the Central Excise law is ‘manufacture / production’ and the liability of Central Excise duty arises as soon as the goods are manufactured or produced. As per the Central Excise Act, duty is leviable only on excisable goods. ie, Goods specified in Central Excise Tariff Act, 1985.The Central Excise Officers are also entrusted to collect other types of duties levied under Additional Duties (Goods of Special Importance) Act, Additional Duties (Textiles and Textiles Articles) Act, Cess etc.
Till 1969, there was physical control system wherein each clearance of manufactured from the factory was done under the supervision of the Central Excise Officers. Introduction of Self-Removal procedure was a watershed in the excise procedures. Now, the assessees were allowed to quantify the duty on the basis of approved classification list and the price list and clear the goods on payment of appropriate duty.
In 1994, the gate pass system gave way to the invoice-based system, and all clearances are now effected on manufacturer’s own invoice. Another major change was brought about in 1996, when the Self-Assessment system was introduced. This system is continuing today also. The assessee himself assesses his Tax Return and the Department scrutinises it or conducts selective audit to ascertain correctness of the duty payment. Even the classification and value of the goods have to be merely declared by the assessee instead of obtaining approval of the same from the Department.
In 2000, the fortnightly payment of duty system was introduced for all commodities, an extension of the monthly payment of duty system introduced the previous year for Small Scale Industries.
In 2001, new Central Excise (No.2) Rules, 2001 have replaced the Central Excise Rules, 1944 with effect from 1 July 2001. Other rules have also been notified namely, CENVAT Credit Rules, 2001, Central Excise Appeal Rules, 2001etc. With the introduction of the new rules several changes have been effected in the procedures. The new procedures are simplified. There are less numbers of rules, only 32 as compared to 234 earlier. Classification declaration and Price declarations have also been dispensed with, the CENVAT Declaration having been earlier dispensed with in 2000 itself.
Administration
The Central Excise law is administered by the Central Board of Excise and Customs (CBEC or Board) through its field offices, the Central Excise Commissionerates. For this purpose, the country is divided into 10 Zones and a Chief Commissioner of Central Excise heads each Zone. There are total 61 Commissionerates in these Zones headed by Commissioner of Central Excise. Divisions and Ranges are the subsequent formations, headed by Deputy/Assistant Commissioners of Central Excise and Superintendents of Central Excise, .For enforcing the central excise law and collection of Central Excise duty the following types of procedures are being followed by the Central Excise Department:
- Physical Control – Applicable to cigarettes only. Here assessment precedes clearance which takes place under the supervision of Central Excise officers;
- Self-Removal Procedure – Applicable to all other goods produced or manufactured within the country. Under this system, the assessee himself determines the duty liability on the goods and clears the goods.
See also
- Central Board of Excise and CustomsCentral Board of Excise and CustomsThe Central Board of Excise and Customs is the national agency responsible for administering customs and excise in India.The Customs & Excise department was established in the year 1855 by the then British Governor General of India, to administer customs laws in India and collection of import...
- Income tax in IndiaIncome tax in IndiaThe government of India imposes an income tax on taxable income of individuals, Hindu Undivided Families , companies, firms, co-operative societies and trusts and any other artificial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961...
- Service tax in India
- Value added taxValue added taxA value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...