Tuesday, 24 December 2019

Unit 4: Various Authorities under Excise Law


Unit 4: Various Authorities under Excise Law

Under section 3 of the Central Excises and Salt Act, 1944, the basic excise duty is charged on all excisable goods other than salt.

The goods must be produced or manufactured in India.

The rates applied are as per the schedule to the Central Excise Tariff Act, 1985.

Section 3 of Additional Duties of Excise (Goods of Special Importance) Act, 1957 states that the levy and collection of additional excise duty is authorized with respect to the goods mentioned in the schedule to the Act.

This duty is charged in lieu of sales tax under different enactments like industries development, medicinal and toilet preparations, sugar etc.

The duty received is shared between the State and Central Governments.

Special excise duty is attracted on all excisable goods on which Basic Excise Duty under the Central Excises and Salt Act, 1944 is levied.

This duty is charged as per the Section 37 of the Finance Act, 1978.

Every year since then, the Finance Act specifies whether the duty is to be levied and collected or not for that financial year.

Manufacturer: Manufacturer is a person who actually manufactures or produces the excisable goods.

Maximum Retail Price: MRP is the maximum retail price that shall be chargeable to final consumers.

Personal Ledger Account: PLA is the current account prepared for keeping the account of duty paid and duty payable.

Set-Off: Set-Off mean adjusting the duty paid on inputs with the duty payable on finished goods.

Tariff Value: Tariff Value is the value fixed by government from time to time for valuation of certain excisable goods.

Trade Parlance Theory: The theory states that the goods must be classified in the CEA, in the sense in which it is understood in the trade.

Indirect Tax Laws Notes Warehouse: Warehouse is the place at which the goods are stored after their production in factory.

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