An excise duty is a tax on goods produced within a country, as opposed to customs duties on imported goods. It is levied on the production or sale of goods and is a source of government revenue. To be subject to excise duty, goods must be movable, marketable, and mentioned in the Central Excise Tariff Act. There are basic, special, and additional excise duties charged at different rates. Liability for excise duty arises when goods are manufactured or produced in India and the manufacturer or producer is responsible for paying the duty. Valuation and duty rates can vary based on specific good characteristics or an ad valorem percentage of the goods' value.