Introduction on Classification of Excisable Goods :

The classification of goods consists of determining the headings or sub-headings of the Central Excise Tariff under which the said goods would be covered.

Need for classification

(i) 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.

(ii) The classification of goods is also required to be decided for the purposes of determining eligibility to exemptions, most of which are with reference to the Tariff headings or sub headings.