> Basic conditions for levy of excise Duty U/s. 3:

1.       There must be goods.

2.       Goods must have been produced or manufactured

3.       Goods must be excisable

4.       Such production or manufacture must be in India

> No levy on goods manufactured in SEZ

> Central excise law extents to designated areas in continental shelf & Economic exclusive zone

> Goods manufactured by or on behalf of Government are also Dutiable (other than salt) - Sec 3(1A)

> Taxable event:

  The event happening of which attracts the liability to pay tax. In central excise TE is production or manufacture of excisable good.

> Excisable goods-Sec 2(d):

- Goods

- specified in the I & II schedule to the CETA, 1985

- as being subject to a duty of excise and

-   Includes Salt.

 Relevant date for rate of duty & tariff Valuation:

Duty is payable at the time of removal of goods from the factory or warehouse- Rule 4

The date of actual removal of goods from the factory or warehouse- Rule 5

Goods- Article 366(12):

To include –

                all materials

                commodities &

                articles

Fundamental characteristics of Goods:

1.       Movability:

Immovability property that are attached to land /earth

                                No excise duty

                                As they lack movability

2.       Marketability

Deemed Marketability:

·         Movable because an article is specified in the tariff schedule

Not liable to duty

Unless it is marketable

·         Capability of being brought & sold for a consideration

·         Actual sale is not necessary

·         Not necessarily marketable product known to commerce & must be worthwhile to trade in.

·         Captive consumption is not determinative for marketability

·         Does not depend upon number of purchasers

·         Onus of proof is on department

You need to be logged in to post reply