EXCISE DUTY EFFECT ON SALES RETURNS

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 for goods lost, destroyed or unfit for consumption or marketing

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.

 Removal of credit wrongly taken

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.