| For
the Assessment Year 2007-08 |
- The general rate of Basic
Excise Duty (BED) remains unchanged.
- 1% cess for secondary and
higher education introduced.
- For small scale excemption, the
turnover ceiling is increased from Rs 10 million to Rs 15
million.
- The valuation rule for all the
goods manufactured by job worker has been introduced.
- The effective rates on petrol
and diesel is reduced from 8 per cent to 6 per cent.
- The settlement commission
provisions is to be amended.
- The e-payment has become
mandatory in cases where the annual excise duty payable is in
excess of Rs 5 million.
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The Customs Act was formulated in 1962 to
prevent illegal imports and exports of goods. Besides, all imports are
sought to be subject to a duty with a view to affording protection to
indigenous industries as well as to keep the imports to the minimum in
the interests of securing the exchange rate of Indian currency.
Duties of customs are levied on goods imported or exported from India
at the rate specified under the customs Tariff Act, 1975 as amended from
time to time or any other law for the time being in force. For the
purpose of exercising proper surveillance over imports and exports, the
Central Government has the power to notify the ports and airports for
the unloading of the imported goods and loading of the exported goods,
the places for clearance of goods imported or to be exported, the routes
by which above goods may pass by land or inland water into or out of
Indian and the ports which alone shall be coastal ports
In order to give a broad guide as to classification of goods for the
purpose of duty liability, the central Board of Excises Customs (CBEC)
bring out periodically a book called the "Indian Customs Tariff
Guide" which contains various tariff rulings issued by the CBEC.
The Act also contains detailed provisions for warehousing of the
imported goods and manufacture of goods is also possible in the
warehouses.
For a person who do not actually import or export goods customs has
relevance in so far as they bring any baggage from abroad.
Importance of Central Excise Duty
Central excise revenue is the biggest single source of revenue for the
Government of India. The Union Government tries to achieve different
socio-economic objectives by making suitable adjustments in the scope
and quantum of levy of Central Excise duty. The scheme of Central Excise
levy is suitably adapted and modified to serve different purposes of
price control, sufficient supply of essential commodities, industrial
growth, promotion of small scale industries and like Authority for
collecting the Central Excise duty.
Article 265 of the Constitution of India has laid down that both levy
and collection of taxes shall be under the authority of law. The excise
duty is levied in pursuance of Entry 45 of the Central List in
Government of India Act,1935 as adopted by entry 84 of List I of the
seventh Schedule of the Constitution of India. Charging section is
Section 3 of the Central Excises and Salt Act,1944.
Liability to pay Central Excise Duty
Section 3 of the Central excises and Salt Act,1944 provides that there
shall be levied and collected in such manner as may be prescribed,
duties of excise on all excisable goods other than salt which are
produced or manufactured in India at the rates set forth in the schedule
to the Central excise Tariff Act,1985.it is therefore clear that as soon
as the goods in question are produced or manufactured, they will be
liable to payment of Excise duty. However for convenience duty is
collected at the time of removal of the goods. While Section 3 of the
Central Excises and salt Act,1944 lays down the taxable event, Rules 9
and 49 of the Central excise Rules,1944 provides for the collection of
duty.
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