Sunday, December 27, 2015

Duties under Central Excise Act 1944

Central Excise Act Duties

  1. Basic excise duty
  2. Special excise duty
  3. Additional excise duty
  4. National Calamity Contingent Duty (NCCD)
  5. 100% Export Oriented Undertakings and units (EOU)
  6. Free Trade Zone export (FTZ)
  7. Clean energy cess



Basic excise duty: It is levied u/s 3(1)(a) of the Central Excise Act and is levied at the rates specified in First Schedule to CETA (Central Excise Tariff Act, 1985)

Special excise duty: It is levied u/s 3(1)(b) of Central Excise Act on some commodities like Pan masala, Cars etc. These items are covered in Second Schedule to CETA. However, w.e.f 01.03.2006, all goods are exempted from special excise duty.

Additional excise duty: It is levied as surcharge on pan masala and on certain tobacco products except biris to finance the National Rural Health Mission. It is charged at the prescribed specific rates on cigarettes and at the rate of 10% on other products

National Calamity Contingent Duty (NCCD): It is imposed vide sec 136 of finance act, 2001 on pan masala, chewing tobacco and cigarettes.

Duty on 100% EOU & FTZ: Generally, 100% Export Oriented Undertakings and units in Free trade Zone export all their production. However, if they clear their final products in Domestic Tarriff Area (DTA) then excise duty has to be paid. The duty amount in this case is equal to the aggregate of customs duty that would have been payable on the like article as if it is been imported in India. Even
though the rate of customs duty is considered for payment of duty, actually the duty paid by them is central excise duty. The rate of customs duty is taken only as a measure

Clean energy cess: It is levied @ Rs.200 per tonne.

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