Excise Duty Essay

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LESSON–19 CENTRAL EXCISE LAWS Mr. Surender Munjal STRUCTURE 19.0 19.1 19.2 Introduction Objective Nature of Excise Duty 19.2.1 Taxable Event 19.2.2 Rates of Excise Duty Chargeability of Excise Duty Definitions and Concepts 19.4.1 Factory 19.4.2 Goods 19.4.2 Manufacture 19.4.3 Manufacturer Classification of Goods 19.5.1 Scheme of Classification 19.5.2 Broad Grouping in CETA 19.5.3 Trade Parlance Theory Valuation of Goods Registration of Goods Clearance of Goods Duty Payment Provisions Excise Duty Setoff Provisions Let us Sum Up Glossary Self-Assessment Exercise Further and Suggested Readings 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.0 INTRODUCTION Tax is of two types Direct Tax and Indirect Tax. Direct Tax is the tax, which is paid directly by people to the government, while indirect tax is the tax, which is paid indirectly by people to the government. Income Tax is paid directly to the government therefore it is a direct tax while excise duty is paid by people to the manufacturer who pays it to the government, therefore it is an indirect tax. The Constitution of India (COI) has given power to levy tax to central and state government under seventh schedule. The taxation in India is either charged by the state governments or by the central government. In the basic scheme of taxation in India, it is conceived that central government will levy 238 and collect tax revenue from Income Tax (except on Agricultural Income), Excise (except on alcoholic drinks) and Customs while state government will get tax revenue from sales tax, excise on liquor and tax on Agricultural Income and the municipalities will get tax revenue from octroi and house property tax. Central Excise Law is a combined study of: 1. 2. 3. 4. Central Excise Act (CEA), 1944; Central Excise Tariff Act (CETA), 1985; Central Excise Rules, 2002; and CENVAT Credit

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