Excise - Export, Warehousing and SSI

Excise – Export, Warehousing and SSI


Conditions –

Export within 6 months of clearance of goods for export.

  1. Must not fall below 500 Rs.
  2. Market price > Amount of rebate of duty.

Rebate on (except Bhutan) –

  1. Finished goods whether excisable or not.
  2. Any process even though it doesn’t amount to manufacture.
  3. No rebate of duty paid on capital goods.

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Excise - Valuation

Excise – Valuation


Specific duty –

  • Basis – length/area/volume etc.
  • E.g. – excise duty on marble tiles = Rs. 60/m2.

Ad-valorem duty (general % based) –

  • Fixed percentage.
  • Varies between inferior and superior goods.
  • E.g. – 12% duty on goods worth 100,000 = 12,000 Rs.

Annual capacity of production duty –

  • Capacity as determined by officer not below the rank of asst. commissioner – deemed to be actual production.

Note – pan masala containing more than 15% betel/ containing tobacco/ unmanufactured tobacco bearing a brand name/ chewing tobacco and jarda scented tobacco manufactured are covered. It is INCLUSIVE of SHEC and EC.

Compounded levy scheme duty (optional) –

  • Covers – stainless steel patti (40,000 per month per machine + EC/SHEC) and aluminum circles (12,000 per month per machine + EC/SHEC).
  • Based on – number and types of machines.

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Excise - General Procedures

Excise – General Procedures

Physical Control (removal of physical goods under supervision of CE Officials where invoice is countersigned by them and assessment is also done by them) is applicable to cigarettes.

SSI manufacturers having turnover below 150 lakhs are exempt.


  1. Apply to AC/DC in form A-1/A-2/A-3 (separate registration for separate offices).
  2. RC is issued within 7 days of receipt of the application.

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Excise - Classification

Excise – Classification

Rules of interpretation of 1st schedule to CETA, 1985 (Central excise tariff act)

Rule 1 –

  • Titles of sections and chapters – for reference only.

Rule 2 –

  • Rule 2(a) (finished vs. unfinished) –

o   Any reference to finished goods – include unfinished goods – if unfinished goods ESSENTIALLY has the same character as that of finished goods.

o   E.g. – car without seats is still a car.

  • Rule 2(b) (mixtures) –

o   Any reference to good – include mixtures of that good.

o   E.g. – coffee with chicory. Read More »

Excise - CENVAT credit

Excise – CENVAT Credit

CENVAT – Credit given on central excise duty/ additional duties of customs paid, and service tax paid.


RULE 3 (on which items credit can be taken)

  • Rule 3(1) (taxation stuff) –

o   First schedule of Excise Tariff Act (i.e. Basic excise duty) excluding goods on which benefit of exemption is availed.

o   Second schedule of Excise Tariff Act (i.e. Special excise duty).

o   Additional excise duty i.e. under section 3 of Additional duties of excise TTA (textile and textile articles) and GOSI (goods of special importance) – credit can be availed only against the payment of the same.

o   NCCD (National calamity contingent duty) – credit can be availed only against the payment of the same.

o   Education cess on excisable goods – credit can be availed only against the payment of the same.

o   EC and SHEC – credit can be availed only against the payment of the same.

o   Additional duties under customs tariff act.

o   Additional excise under finance act, 2003.

o   Service tax under section 66/ 66A/ 66B. Read More »

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