Duties under Central Excise Act, 1944 :
Excise duties are of following types –
(i) Basic excise duty: This duty is levied under section 3(1)(a) of Central Excise Act. As per section 2A of Central Excise Act, basic excise duty is termed as CENVAT with effect from 12-5-2000. It is levied at the rates specified in First Schedule to Central Excise Tariff Act, read with exemption notification, if any. General rate of central excise duty on non-petroleum products is 12.5% [The general rate has been increased from 12% to 12.5% with effect from 01.03.2015].
The rate of excise duty has been enhanced by the Finance Act, 2015 (enacted on 14.05.2015). However, by virtue of a declaration under the Provisional Collection of Taxes Act, 1930*, the above increase in the rate of excise duty was made effective immediately on the expiry of the day on which the Finance Bill, 2015 was introduced i.e. w.e.f. 01.03.2015.
*The purpose of this act is to amend the law providing for the immediate effect for a limited period, for provisions in bills relating to the imposition or increase of duties in customs or excise laws.
(ii) Special excise duty: This duty is levied under section 3(1)(b) of Central Excise Act. Special duty of excise is leviable on some commodities like pan masala, cars etc. These items are covered in Second Schedule to Central Excise Tariff.
However, with effect from 01.03.2006, all good have been exempted from special excise duty.
(iii) Additional Duty of Excise (Textile and Textile Articles) [AED(TTA)]: This duty is leviable under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978. This Act provides for the levy and collection of additional duties of excise on certain textile and textile articles. However, w.e.f. 09.07.2004, all goods which were liable to AED (TTA) have been exempted from such duty.
(iv) Additional Duty of Excise (Goods of Special Importance) [AED (GSI)]: It is levied under Additional Duties of Excise (Goods of Special Importance) Act, 1957 on the specified goods mentioned in its First Schedule. This duty is levied in lieu of sales tax and shared between Central and State Governments. However, w.e.f. 01.03.2006, all goods which were liable to AED (GSI) have been exempted from such duty.
(v) National Calamity Contingent Duty (NCCD): It is imposed vide section 136 of the Finance Act, 2001 on pan masala, branded chewing tobacco, cigarettes, domestic crude oil and mobile phones.
(vi) Additional Duty of Excise: It is imposed by way of surcharge on pan masala and certain specified tobacco products vide section 85 of the Finance Act, 2005.
(vii) Education Cess: It is levied on excisable goods manufactured in India @ 2% of the aggregate duties of excise levied on such goods.
With effect from 01.03.2015, Education Cess levied on all excisable goods as a duty of excise has been fully exempted.
(viii) Secondary and Higher Education cess: It is levied on excisable goods manufactured in India @ 1% of the aggregate duties of excise (excluding education cess) leviable on such goods.
With effect from 01.03.2015, Secondary and Higher Education Cess levied on all excisable goods as a duty of excise has been fully exempted.
(ix) Clean energy cess: It has been levied on coal (raw coal, lignite and peat) @ ` 50 per tonne with effect from 01.07.2010. The procedures relating to exemption, registration, recovery, demand, interest, refund, offences, penalty etc. in respect of such cess are being governed by the provisions as applicable under the Central Excise Act, 1944 in regard to like matters.