Central Excise Scope

Central Excise Central Excise is a levy on manufacture of goods. The event attracting levy of central excise is manufacture of goods though excise duty is payable on removal of goods from the place of manufacture. The removal of goods from the place of manufacture may or may not be a sale. Central Excise duty is required to be paid even if goods are removed from the place of manufacture for free distribution, or personal consumption or consumption in other unit of the same manufacturer. The Central Excise Act, 1944 contains the provisions about the levy, collection, & assessment, of duty, Valuation of goods for the purpose of charging of duty, powers & duties of Central Excise officers, Advance Rulings, Settlement of cases, Appeals & adjudication of confiscations & penalties. Section 37 of The Central Excise Act, 1944 empowers the Central Government to issue Rules for procedures to be adopted by Central Excise officers for levy & Collection of duty & procedures to be followed by manufactures for production, storage & removal of goods , valuation of goods, availing the benefit of cenvat credit & payment of duty. In exercise of powers granted by the 37 of The Central Excise Act, 1944 Government has issued following Rules, the knowledge of which is as much important if not more than The Central Excise Act, 1944 :1) 2) 3) 4)

Central Excise Rules, 2002 Cenvat Credit Rules, 2002 Central Excise (Settlement of cases) Rules, 2001 Central Excise ( Removal of goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 5) Central Excise Valuation ( Determination of Price of Excisable Goods) Rules, 2000 6) Consumer Welfare Fund Rules, 1992 7) Customs & Central Excise Duties Drawback Rules, 1995 Central Government also issues notification from time to time to amend the Central Excise Rules, to effect any change in rate of duty, exemption from payment of duty subject to conditions as it may find fit to impose. The Central Excise Tariff Act, 1985 contains rate of duty applicable in respect of particular product. It has 96 chapters which are classified according to various categories of goods. There are about 75 general exemption notifications issued by Central Government which gives full or partial exemption from payment of duty subject to condition imposed in the notification.

Apart from this there are various trade notices, ministerial circular, departmental circulars, notices issued by various comisionerates clarifying the provisions of central excise contained in Act, Rules & notifications. A Chartered Accountant can provide service to a manufacturer in various ways as explained below:1) Determining the applicability of levy of excise duty in respect of a particular product. 2) Once it is established that the product attracts levy of excise duty than finding out proper classification of product as per Central Excise Tariff determining the rate of duty. 3) Applicability of a exemption notification in respect of the product & advising him on tax planning to minimize the payment of duty once it is determined that a particular exemption notification is applicable. 4) Advising the client about the procedures required to be observed regarding production, storage, removal, payment of duty, filing of monthly returns & assessment of duty. 5) Internal audit of excise records with a view to ensure compliance of excise procedures as well as ensuring that there is no lapse in availing cenvat credit. 6) Advising about the export benefits & helping them to choose the right option of several export benefit available to the exporter. 7) Advising the client about location advantage in respect of payment of excise duty in respect of certain products. 8) Drafting reply to show cause notice received from Department of Central Excise. 9) Representing client before appellate authorities.