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Excise query

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Rahul Bansal

article assistent

29 Points Posted on 12 June 2011

I am going to maharashtra on audit of a beer manufacturing company. I have read in CA final that power to levy and collect excise duty on manufacturing of alcoholic liquor for human consumption is given to states by constitution of India.

My question is, whether all states have made their respective excise laws to levy excise duty on alcoholic liquor for human consumption ? If not, then whether central excise act and rules are applicable on all states and only the power to levy and collect excise duty on alcoholic liquor for human consumption is given to states ?

Replies (5)

U S Sharma

glidor@gmail.com

21670 Points Posted on 13 June 2011

https://stateexcise.maharashtra.gov.in/EXCISE/Rates%20of%20Excise%20Duty%20&%20The%20Mrp%20Factor.htm

Rahul Bansal

article assistent

29 Points Posted on 13 June 2011

Thank you. Please tell me about CENVAT Credit also . Is it availed as per normal rules of CENVAT ??

U S Sharma

glidor@gmail.com

21670 Points Posted on 14 June 2011

state excise is not under cenvat rules

Rahul Bansal

article assistent

29 Points Posted on 14 June 2011

then what about the credit of excise duty paid on input and capital goods used in manufacturing of Beer ?? please clarify..

U S Sharma

glidor@gmail.com

21670 Points Posted on 14 June 2011

I dont think that they are in position to utilize the cenvat credit on capital goods, though they have option to clear their bye-products on payment of "cenvat" and that is the gray sector where they can use their excise paid on capital goods.

regarding inputs, major of inputs are not covered in central excise, hence question of cenvat credit is irrelvant.