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Introduction to Excise for Manufacturers

Excise Duty is an indirect tax. The manufacturer is liable to pay the Excise Duty. The levy and collection of excise duty is provided under the authority of the Central Excise Act, 1944 at the rates specified Central Excise Tariff Act, 1985. Excisable goods are goods which are specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985, as being subject to a duty of excise. This includes salt.

The term manufacture includes any process, which is

Incidental or ancillary to the completion of a manufactured product

Specified in relation to any goods in the Section or Chapter Notes of the First Schedule to the Central Excise Tariff Act, 1985 as amounting to manufacture

In relation to the goods specified in the Third Schedule. This involves:

o Packing or repacking of such goods in a unit container

o Labelling or re-labelling of containers including the declaration or alteration of retail sale price on it

o Adoption of any treatment on the goods to render the product marketable to the consumer

Scope and Applicability

Excise Duty means the tax to be paid by the manufacturer, on the goods manufactured in India, either at the time of manufacture or at the time of removal of the goods.

Excise Duty can be levied, only on the fulfillment of the below mentioned conditions.

The Duty is on Goods

The Goods must be excisable

The goods must be manufactured or produced

Manufacture and Production must be in India.