In this presentation, every possible effort has been made to highlight the major aspects related to the topic in TAX PLANNING & MANAGEMENT involves Central Excise Act,1962 & Customs Act,1975.

1. Central Excise Act, 1944 & Sales Tax
Customs Act, 1962

2. Learning Objectives
 Excise Duty
 Broker or Commission
Agent
 Central Excise Officer
 Goods & Excisable
Goods
 Factory, Manufacture
 Types of Excise Duty
 Excise Rates
 Conditions for imposing
Central Excise
 Customs Act, 1975
 Customs Duty
 Types Of Customs Duty

3. What is Excise Duty?
 Excise Duty is a type of tax charged on goods
produced within the country. It is a tax levied on certain
goods & commodities produced or sold within a
country and on licenses granted for certain activities.
 In India, excise duty is levied in accordance with the
provisions of the Central Excise Act, 1944.

4. Broker Or Commission Agent:
Broker is the middleman, who works for an individual
and not for an organization, collects commission from
individual. For example: A Real Estate broker collects
commission from individual seller or buyer.
Commission Agent is the middle man, who works for an
organization and collects commission from an organization
for successful completion of sale. For example: LIC agent
collect commission from an organization for collection of
premium insurer.

5. Central Excise Officer:
Central Excise Officer means the Chief Commissioner of Central
Excise, Commissioner of Central Excise, Commissioner of Central
Excise (Appeals), Additional Commissioner of Central Excise, Joint
Commissioner of Central Excise, Assistant Commissioner of Central
Excise or Deputy Commissioner of Central Excise or any person
(including an officer of the state government) invested by the Central
Board of Excise and Customs constituted under the Central Boards of
Revenue Act, 1963 (54 of 1963) with any of the powers of a Central
Excise Officer under this act.

6. Goods, means every kind of movable property other than
actionable claims, that are made to be sold. It must be movable &
have marketability.
Section 2(d) of Central Excise Act defines Excisable Goods as
goods specified in the schedule to Central Excise Tariff Act, 1985 as
being subject to a duty of excise and includes Salt.
As per section 2(f) of Central Excise Act 1944, Factory means
any premises including the precincts there of, wherein or in any part
of which any manufacturing process connected with the production
of these goods is being carried on or is ordinarily carried on.

7. Section 2(f) of Central Excise Act “manufacture” includes any
process:
(i) Incidental or ancillary to the completion of a manufactured
product.
(ii) Which is specified in relation to any goods in the section or
chapter Notes of the first schedule to the Central Excise Tariff
Act, 1985 as amounting to manufacture; or
(iii) Which in relation to the goods specified in the Third Schedule,
involves packing or repacking of such goods in a unit container
or labeling or relabeling of containers including the declaration
or alteration of retail sale price on it or adoption of any other
treatment on the goods to render the product marketable to the
consumer.

8. 1. Basic Excise
Duty
2. Special
Excise Duty
3. Education
Cess on Excise
duty
4. Excise duty in
case of
clearances by
EOU
5. Additional
duty of Excise
Types of Excise Duty:

9. 1. Basic Excise Duty (BED): This is the duty charged under section 3 of
the Central Excises and Salt Act, 1944 on all excisable goods other than
salt which are produced or manufactured in India. Basic Excise Duty
[also known as Central Value Added Tax (CENVAT)] is levied at the
rates specified in Central Excise Tariff Act.
2. Special Excise Duty (SED): As per the Section 37 of the Finance Act,
1978 Special excise Duty was attracted on all excisable goods on which
there is a levy of Basic excise Duty under the Central Excises and Salt
Act,1944. Special Excise Duty is levied at the rates specified in the
Second Schedule to Central Excise Tariff Act, 1985.
3. Education Cess on Excise Duty: Section 93 of Finance (No. 2) Act,
2004 states that education Cess is 'duty of excise', to be calculated on
aggregate of all duties of excise including special excise duty or any
other duty of excise, but excluding education Cess on excisable goods.

10. 4. Excise duty in case of clearances by EOU: The EOU units are
expected to export all their production. However, if they clear their final
product in DTA (domestic tariff area), the rate of excise duty will be
equal to customs duty on like article if imported in India.
5. National Calamity contingent Duty (NCCD): A 'National Calamity
Contingent Duty' (NCCD) has been imposed vide section 136 of Finance
Act, 2001 [clause 129 of Finance Bill, 2001, w.e.f. 1.3.2001]. This duty
is imposed on pan masala, chewing tobacco and cigarettes.
Duties under other Acts: Some duties and Cess are levied on
manufactured products under other Acts. The administrative machinery
of central excise is used to collect those taxes. Provisions of Central
Excise Act and Rules have been made applicable for levy and collection
of these duties / Cess.

11. Additional Duty on Goods of Special Importance (AED [GSI]): Some
goods of special importance are levied Additional Excise under Additional
Duties of Excise (Goods of Special Importance) Act, 1957. The
'Additional Duty' is in addition to excise duty. This scheme was introduced
based on the suggestion made by the manufacturers to Government, that
multiple level taxes and duties should be avoided. Levy and collection of
all taxes at one stage by single authority will be convenient for payment
and administration. Hence, by agreement between Central and State
Governments, it was decided to make a beginning in 1957, by selecting
some items where additional duty will be collected instead of sales tax and
such additional duty will be distributed among various States. Revenue
from this duty is distributed among State Governments on the basis of
percentages given in the second schedule to the Act.

12. Some items covered are textile articles like cotton fabrics, silk and
wool fabrics, man-made fibers, terry fabrics, metalized yarn,
embroidery; sugar, branded tobacco, pan masala containing tobacco and
cigarettes.
Duty on Medical and Toilet Preparations: Excise duty is imposed
on medical preparations under Medical and Toilet Preparations (Excise
Duties) Act, 1955.
Additional Duty on Mineral Products: Additional duty on mineral
products (like motor spirit, kerosene, diesel and furnace oil) is payable
under Mineral Products (Additional Duties of Excise and Customs) Act,
1958.

13. Conditions for Imposing Central Excise:
1. There must be goods.
2. The goods must be excisable.
3. Excisable goods must be manufactured or produced in
India.

14. The Customs Act, 1962:
The Customs Act was formulated in 1962 to prevent illegal imports and
exports of goods. Besides, all imports are sought to be subject to a duty
with a view to affording protection to indigenous industries as well as to
keep the imports to the minimum in the interests of securing the exchange
rate of Indian currency.
The levy and the rate of customs duty in India are governed by the
Customs ct, 1962 and the Customs Tariff Act, 1975. Imported goods in
India attract basic customs duty, additional customs duty and educational
cess.

15. What is Customs Duty?
 Customs Duty is a tariff or tax imposed on goods
when transported across international borders. The
purpose of customs Duty is to protect each country’s
economy, resident, jobs, environment etc. by
controlling the flow of goods, especially restrictive &
prohibited goods, into and out of the country.
 In India, Customs Duty is levied in accordance with
the provisions of the Customs Act, 1962 & Customs
Tariff Act, 1975.

16. 1. Basic
Customs Duty
2.
Countervailing
Duty
3. Safeguard
duty
4. Dumping
Duty
5. National
Calamity
Contingent Duty
6. Education
Cess on
Customs Duty
7. Protective
Duties
Types of Customs Duty:

17. Types of Customs Duty:
1. Basic Customs Duty
Basic custom duty is the duty imposed on the value of the goods at a
specific rate. The duty is fixed at a specified rate of ad-valorem basis. This
duty has been imposed from 1962 and was amended from time to time and
today is regulated by the Customs Tariff Act of 1975. The Central
Government has the right to exempt any goods from the tax.
2. Countervailing Duty (CVD)
This duty is imposed by the Central Government when a country is paying
the subsidy to the exporters who are exporting goods to India. This amount
of duty is equivalent to the subsidy paid by them. This duty is applicable
under Sec 9 of the Customs Tariff Act.

18. 3. Safeguard Duty
In order to make sure that no harm is caused to the domestic industries
of India, a safeguard duty is imposed to safeguard the interest of our
local domestic industries. It is calculated on the basis of loss suffered by
our local industries.
4. Anti Dumping Duty
Often, large manufacturer from abroad may export goods at very low
prices compared to prices in the domestic market. Such dumping may be
with intention to cripple domestic industry or to dispose of their excess
stock. This is called ‘dumping’. In order to avoid such dumping, Central
Government can impose, under section 9A of Customs Tariff Act, anti-
dumping duty up to margin of dumping on such articles, if the goods are
being sold at less than its normal value. Levy of such anti dumping duty
is permissible as per WTO agreement. Anti dumping action can be taken
only when there is an Indian industry producing ‘like articles’.

19. 5. National Calamity Contingent Duty
This duty is imposed by Sec 129 of the Finance Act. The duty is levied on
goods like tobacco, pan masala or any items that are harmful for health. The
rate of the tax varies from 10% to 45% and different rates are applied for
different reasons.
6. Education Cess on Customs Duty
At the prescribed rate is levied as a percentage of aggregate duties of
customs. If goods are fully exempted from duty or are chargeable to nil duty
or are cleared without payment of duty under prescribed procedure such as
clearance under bond, no cess would be levied.
7. Protective Duties
Tariff Commission has been established under Tariff Commission Act, 1951.
If the Tariff Commission recommends and Central Government is satisfied
that immediate action is necessary to protect interests of Indian industry,
protective customs duty at the rate recommended may be imposed under
section 6 of Customs Tariff Act. The protective duty will be valid till the date
prescribed in the notification.

20. SUBMITTED BY: SAMANVAY JAIN
Roll No: 1605470077
Batch: MBA 3rd Sem.
(2017-18)
THANK YOU
Submitted To: Ms Priyanka Singh
(Lecturer)