THE LEVY
1. Central Excise is a tax on act of manufacture.
2. Excise is collected, on the goods manufactured or
produced, at the time of their removal from the factory for administrative
convenience.
EXCISABILITY
Central Excise Duty can be imposed on any article
provided it satisfies two conditions;
1. The article should be goods
2. It should have
come into existence as a result of “manufacture”.
RATES OF EXCISE DUTY
|
RATE
|
VALID FROM
|
VALID TO
|
|
16 %
|
01.01.2006
|
29.02.2008
|
|
14%
|
01.03.2008
|
06.12.2008
|
|
10%
|
07.12.2008
|
23.02.2009
|
|
8%
|
24.02.2009
|
26.02.2010
|
|
10%
|
27.02.2010
|
16.03.2012
|
|
12%
|
17.03.2012
|
Present
|
Remission of duty can availed if the assessee proves
to the satisfaction of the commissioner of Central Excise that the goods have
been lost or destroyed by natural cause or by unavoidable accident or unfit for
consumption or marketing before their clearance.
Return of Duty Paid goods for repairs Etc:
As per the Central Excise rules, 1944, where any duty
paid goods are subsequently returned to the factory for being remade, refined,
reconditioned or for any other reason,
particulars of such goods shall be recorded and CENVAT credit of duty
paid on such goods shall be taken as if
they are inputs and utilize the credits.
But the goods received must be eventually returned.
When the goods are returned after processing, such
goods shall be removed on payment of duty according to the value and rates of
duty as applicable on the date of removal.
If CENVAT credit is wrongly taken or utilized, same is
recoverable along with interest from the date of availing such credit.
Confiscation and Penalty- Penalty on wrongly availing
credit is liable for penalty not exceeding the duty on such goods/ services or
Rs 2,000 whichever is higher.
