CLASSIFICATION OF EXCISABLE GOODS :

The actual amount of excise duty payable on excisable goods is ,inter alia, dependent upon the rate of duty. The rate of duty is determinable on the basis of classification of goods. Further , the classification of goods is also necessary for the purposes of determining eligibility to exemptions, most of which are with reference to the tariff headings or sub headings.

CETA ,1985 contains the schedules to tariff as under-

1. First Schedule : It provides the rates of basic excise duty( CENVAT )   leviable on various products.
2. Second Schedule: It specifies the items on which special excise duty is leviable. However, w.e.f. 1.3.2006,all goods have been exempted from special excise duty.
3. Third Schedule: It specifies deemed manufacture in relation to various specific goods. Hence, this schedule specifies goods in relation to which packing , labeling, re-labelling, MRP declaration/alteration or treatment of goods to render them marketable shall amount to manufacture under section 2 of central excise tariff Act ,1944.