PRESENTATION ON CENTRAL EXCISE ACT, 1944

THE IMPORTANT TOPICS ARE: The Preamble; Some important Definitions; Administrative Authorities; Important Concepts; Procedural Formalities; Powers of the Admn. Authorities;
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PREAMBLE An Act to consolidate and amend the law relating to Central Duties of Excise. Whereas it is expedient to consolidate and amend the law relating to Central Duties of Excise on goods manufactured or produced in (certain parts) of India. (b) "Bench" means a Bench of the Settlement Commission;
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Some definitions
a) "assessee means any person who is liable for payment of excise duty assessed under this Act or any other Act and includes any producer or manufacturer of excisable goods or a registered person under the rules made under this Act, of a private warehouse in which excisable goods are stored;
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Some definitions Broker" or Commission Agent" means a person who in the ordinary course of business makes contracts for the sale or purchase of excisable goods for others. "Central Excise Officer" means the Chief Commissioner of Central Excise, Commissioner of Central Excise, Commissioner of Central Excise (Appeals), Additional Commissioner of Central Excise, Joint Commissioner of Central
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 4) For the purposes of this section, (a) "assessee" means the person who is liable to pay the duty of excise under this Act and includes his agent; (b) "place of removal" means (i) a factory or any other place, or premises of production or manufacture of the excisable goods;
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Some definitions Excise, Deputy Commissioner of Central Excise, Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise or any other officer of the Central Excise Department d) Excisable goods" means goods specified in the Schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise and include salt.
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Some definitions Factory means any premises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on.

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 c) "transaction value" means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to the assessee by reason of, or in respect of the sale,

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Important Concepts Sec 2A - In this Act, save as otherwise expressly provided and unless the context otherwise requires, references to the expressions "duty", "duties", "duty of excise" shall be construed to include a reference to "Central Value Added Tax (CENVAT)".

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Some Definitions (f) "manufacture" includes any process, (i) incidental or ancillary to the completion of a manufactured product; and (ii) which is specified in relation to any goods in the section or Chapter notes of the Schedule 1 to the Central Excise Tariff Act, 1985 as amounting to manufacture.

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Chargeability Section a) "a duty of excise, to be called the Central Value Added Tax (CENVAT)" on all excisable goods which are produced or manufactured in India as, and at the rates, set forth in the First Schedule to the Central Excise Tariff Act, 1985;

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Chargeability Section (b) a special duty of excise, in addition to the duty of excise specified in clause (a) above, on excisable goods specified in the Second Schedule to the Central Excise Tariff Act, 1985 which are produced or manufactured in India, as, and at the rates, set forth in the said Second Schedule:

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Some Concepts Provided that the duties of excise which shall be levied and collected on any excisable goods which are produced or manufactured, (i) in a free trade zone and brought to any other place in India; or (ii) by a hundred per cent export-oriented undertaking and allowed to be sold in India,

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Some concepts (i) "free trade zone" means the Kandla Free Trade Zone and the Santa Cruz Electronics Export Processing Zone and includes any other free trade zone which the Central Government may, by notification in the Official Gazette, specify in this behalf;

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Some concepts ii) "hundred per cent export-oriented undertaking" means an undertaking which has been approved as a hundred per cent exportoriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act.
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Chargeability Section 3A. Power of Central Government to charge excise duty on the basis of capacity of production in respect of notified goods: (3) The duty of excise on notified goods shall be levied, at such rate, on the unit of production or, as the case may be, on such factor relevant to the production, as the Central Government may, by notification in the Official Gazette specify, and collected in such manner as may be prescribed:
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CEA, 1944 4. Valuation of excisable goods for purposes of charging of duty of excise: (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to value, such value shall, subject to the other provisions of this section, be deemed to be (a) the normal price thereof, that is to say, the price at which such goods are ordinarily sold by
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CEA,1944 the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer if not a related person and the price is the sole consideration for the sale:

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CEA,1944 Ascertaining the Duty (b) where the normal price of such goods is not ascertainable for the reason, that such goods are not sold or for any other reason, the nearest ascertainable equivalent thereof determined in such manner as may be prescribed. (3) The provisions of this section shall not apply in respect of any excisable goods for which a tariff value has been fixed under sub-section (2) of section 3.
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CEA, 1944 ba) " time of removal " in respect of goods removed from the place of removal referred to in sub-clause (iii) of clause (b), shall be deemed to be the time at which such goods are cleared from the factory.

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CEA, 1944 5. Remission of duty on goods found deficient in quantity: (1) The Central Government may, by rules made under this section, provide for remission of duty of excise leviable on any excisable goods, which due to any natural cause are found to be deficient in quantity.

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CEA, 1944 5A. Power to grant exemption from duty of excise: (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may by notification in the Official Gazette, exempt generally either absolutely or subject to such conditions (to be fulfilled before or after removal) as may be specified in the notification, excisable goods of any specified description from the whole or any part of the duty of excise leviable thereon:
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CEA, 1944 6. Registration of certain persons: Any prescribed person who is engaged in (a) The production or manufacture or any process of production or manufacture of any specified goods included in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986),

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CEA,1944 10. Power of Courts to order forfeiture: Any Court trying an offence under this Chapter may order the forfeiture to Government of any goods in respect of which the court is satisfied that an offence under this Chapter has been committed, and may also order the forfeiture of any receptacles, packages or coverings in which such goods are contained and the animals, vehicles, vessels or other conveyances used in carrying the goods
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CEA, 1944 (i) "refund" includes rebate of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India;

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CEA, 1944 11AA. Interest on delayed payment of duty: Subject to the provisions contained in section 11AB where a person, chargeable with duty determined under sub-section (2) of section 11A, fails to pay such duty within three months from the date of such determination, he shall pay in addition to the duty, interest at such rate not below eighteen percent and not exceeding thirtysix per cent per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette,
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CEA, 1944
12A. Price of goods to indicate the amount of duty paid thereon: Notwithstanding anything contained in this Act or any other law for the time being in force, every person who is liable to pay duty of excise on any goods shall, at the time of clearance of the goods, prominently indicate in all the documents relating to assessment, sale invoice and other like documents, the amount of such duty which will form part of the price at which such goods are to be sold.
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CEA, 1944 12C. Consumer welfare fund: (1) There shall be established by the Central Government a fund, to be called the Consumer Welfare fund. 13. Power to arrest: (1) Any Central Excise Officer duly empowered by the Central Government in this behalf may arrest any person whom he has reason to believe to be liable to punishment under this Act.
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Misuse of Powers by Excise Officers Sec 22.- Vexatious search, seizure, etc., by Central Excise Officer:

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Administrative Powers under CEA, 1944 32A. Jurisdiction and Powers of Settlement Commission: 35. Appeals to Commissioner (Appeals): (1) Any person aggrieved by any decision or order passed under this Act by a Central Excise Officer, lower in rank than a Commissioner of Central Excise, may appeal to the Commissioner of Central Excise (Appeals)
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Administrative Powers under CEA, 1944 35B. Appeals to the Appellate Tribunal: (1) Any person aggrieved by any of the following orders may appeal to the Appellate Tribunal against such order 26. Power of stoppage, search and arrest:

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Levy of Excise Duty Explanation: "Form or method", in relation to a rate of duty of excise means the basis, namely, valuation, weight, number, length, area, volume or other measure with reference to which the duty is leviable.

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Administrative Powers under CEA, 1944 Chapter IIIA: Advance Rulings 23A. Definitions: In this Chapter, unless the context otherwise requires; (a) "activity" means production or manufacture of goods; (b) "advance ruling" means the determination, by the authority of a question of law or fact specified
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Administrative Powers under CEA, 1944 in the application regarding the liability to pay duty in relation to an activity proposed to be undertaken, by the applicant; (c) "applicant" means a non-resident setting up a joint venture in India in collaboration with a nonresident or resident, or a resident setting up a joint venture in India in collaboration with a nonresident, making application;
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Administrative Powers under CEA, 1944 23G. Powers of Authority: (1) The Authority shall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908.
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Administrative Powers under CEA, 1944 d) "Chairman" means the Chairman of the Settlement Commission; (e) "Commissioner (Investigation)" means an officer of the customs or a Central Excise Officer appointed as such Commissioner to conduct inquiry or investigation for the purposes of this Chapter; (f) "Member" means a Member of the Settlement Commission and includes the Chairman and the
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Administrative Powers under CEA, 1944 Vice-Chairman; (g) "Settlement Commission" means the Customs and Central Excise Settlement Commission constituted under section 32;

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Administrative Powers under CEA, 1944 34. Option to pay fine in lieu of confiscation: Wherever confiscation is adjudged under this Act or the rules made there under, the officer adjudging it shall give the owner of the goods an option to pay in lieu of confiscation such fine as the officer thinks fit.

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