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Central Excise Day: It’s History & Significance
Team SoOLEGAL 24 Feb 2022

Central Excise Day: It’s History & Significance

Every year on February 24th, India celebrates Central Excise Day to urge excise department personnel to carry out the central excise duty in a better way in order to avoid corruption in the products producing company and to follow other policies to provide the best possible excise services.

Throughout the country, numerous seminars, workshops, educational and cultural activites, awareness initiatives, contests, and award ceremonies are being held to commemorate the anniversary. Aside from that, awareness initiatives are performed by the relevant ministries and higher authorities.

Previously known as the Central Board of Excise and Customs is now known as the Central Board of Indirect Taxes and Customs. To administer customs legislation, the customs and central excise/central GST department was founded. The department is now part of the Ministry of Finance’s Department of Revenue, which is responsible for policy formulation regarding the levy and collection of customs, central excise duties, central goods and services tax, and IGST, as well as the prevention of smuggling and administration of matters relating to customs, central excise, central goods and services tax, IGST and Narcotics to the extent that they fall under the purview of the CBIC.

The board is the administrative authority for its subordinate institutions, which include custom houses, the central excise and GST commissionerates, and the Central Revenues Control Laboratory.

History of Central Excise Day

Every year on Feb 24th, Central Excise Day is observed to honor the Central Excise and Salt Act, which was passed on the same date in 1944. The legislation was passed to unify and revise the law concerning Central duties and salt. It was a mash – up of 11 acts pertaining to excise duty.

This statute was later renamed The Central Excise Act, 194 in 1966. Schedules 1 and 2 of this legislation specify the values and rates of duty. According to the original statute, excise charges were collected on 67 different products. The 68th item was likewise established in 1975 as ‘all other things not else defined’, which essentially meant the ‘Terror Items’.

Later that year, a new statute known as ‘The Central Excise Tariff Act (CETA) 1985’ was enacted. This was included into the previous Central Excise Act of 1944, and following this revision, an altered Central Excise ct of 1944 was enacted.

Why Central Excise Day is Celebrated

The Government of India has designated February 24th as the day to commemorate this historic occasion throughout the country. The occasion celebration includes collecting tax on items and persons earning more than the maximum set by the Central Excise Act in 1944. The tax payment rate was established in 1985 under Schedules 1 & II of the Central Excise Tariff Act.

According to Central Excise legislation, the payable event is mostly over produced commodities, which is controlled by the Central Board of Excise and Customs (CBEC) through numerous field offices (meaning Central Excise Commissionerates) around the nation. The Central Board of Excise and Custom is part of the Department of Revenue, which is overseen by the Ministry of Finance of the Government of India.

The Central Board of Excise and Customs Department was formed to develop and execute policies concerning the tax payable and its collection by citizens throughout the country. Customs and Central Excise Taxes have been introduced to discourage undesirable business practices such as smuggling and to effectively handle all concerns linked to central excise, customs, and drugs in India. To handle and administer all affairs in the country, India has been divided into ten zones, each of which is led by the Chief Commissioner of Central Excise. In each Zone, the Commissioner of Central Excise is heading around 61 Commissionerates.

The Central Excise Department performs the following two sorts of processes in order to put all of the Central Excise rules and collections into effect:

1.     Physical Control Process
To administer the Central Excise Duty for cigarettes solely, a physical control procedure has been created. During this procedure, a review is performed under the supervision of Central Excise inspectors for the purpose of approval.

2.     Self Removal Process
The Self – removal process has been adopted to manage the central excise duty for all other commodities made in India. All legal duties on the items are self – accessed by the makers throughout this phase in order to clear the goods.

Importance of Celebrating Central Excise Day

Every year on February 24th, India celebrates Central Excise Day to promote equity among personnel of the Central Board of Excise and Customs Department and to aid them in ensuring greater tax adherence. It is also observed to commemorate the passage of the Central Excise and Salt Act on February 24th, 1944.

Significance of Central Excise Day

The Central Excise Day is very important in boosting public awareness of the role of Excise Duty officials to the nation’s success. The Central board of Indirect Taxes and Customs authorities’ work in fighting corruption in the commodities manufacturing industry is commendable. It has made a significant contribution to the nation’s structure.

It collects duties on industrial items; the money raised by levying duties is utilized for public welfare and to finance different educational and welfare activities. It is a key to source of our country’s financial development. Our country’s financial revenue has more than quadrupled in a few years due to the excise department’s improved service delivery standards. The department contributes significantly to the improvement of the Indian economy by eradicating poverty and illiteracy.

Duties of Central Excise Department

Excise is a tax that is levied on items made in the country. Excise taxes are collected by the Central Excise Departments of India on all items made in the nation, including tobacco, but excluding alcohol and opium. The state Excise Department is in charge of collecting the tax on alcoholic beverages and opium.

The Schedule to the Central Excise Tariff Act, 1985 (Act 5 of 1986), which went into effect on February 28th, 1986, lists the commodities subject to Central Excise levies. Previously, excisable items were included in the First Schedule to the Central Excises and Salt Act of 1944. The Present Tariff is a comprehensive law that covers every product made or produced in the nation. Central excise duty is an indirect tax, which means that every individual, affluent or poor, is required to pay tax indirectly on the purchase of items that have already been taxed. This tax is levied under the authority of Entry 84 of Union List of the Seventh Schedule, as read with Article 226 of the Indian Constitution.

Types of Central Excise Duty

1.     Basic Central Excise Duty

2.     Additional Duties and Cesses

3.     Special Central Excise Duty

4.     Road and Infrastructure Cess

All departments of the central excise are in charge of excise responsibilities such as preventing tax evasion, safeguarding the country from smuggling activities, and collecting revenues to financially support the country in order to carry out the socioeconomic development of the country.

Central Excise Tariff Act, 1985

The Central Excise Tariffs were totally revamped in December 1985, and subsequent amendments were also made to the Central Excise Act. These modifications have the effect of re – modeling the Central Excise Tariff on a more precise pattern known as the ‘Harmonized System’, which gives distinct and independent headings for each and every category of commodity. All of the goods included in the new Central Excise Tariff now have the same headings as those in the Customs Tariff. The Government of India has introduced new items in the sub – headings to cover all current sorts of products in particular entries, thereby replacing item 68 altogether. The new Central Excise Tariff includes interpretive comments for each chapter outlining how items should be categorized, as well as board interpretative guidelines similar to the customs tariff.

Registration to the Excise Department

People who are already engaged, getting engaged or going to be engaged in the activities like producing or manufacturing the excisable items in the nation must register with the excise department. Manufacturers, curers, producers, brokers or commission agents, owners of showrooms or warehouses, dealers or importers, and others are among those who must be registered.

To register, individuals must submit an application to the Range Superintendent and complete the R – 1 form. People who manufacture excisable items in the country as specified in the Central Excise Tariff Act of 1985 must do the following:

·       They should be able to move items they produce.

·       Their items should be marketable and manufactured through the production process.

·       The commodities they produce must be declared under the Central Excise Tariff Act of 1985.

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