This document discusses the different types of central excise duties in India. It outlines five main types: basic excise duty, special excise duty, additional excise duty, cess, and national calamity contingent duty. For each type, it provides a brief description of what it is and how it is applied. It also discusses some key aspects of excisable goods, including what qualifies as goods for excise duty purposes, the distinction between excisable and non-excisable goods, and different categories of dutiable, non-dutiable, exempted, and nil-rated goods.

1. Dr.P.Ravichandran,
M.Com., M.B.A., M.A (Astrology)., M.Phil., Ph.d.,
D.C.P., D.L.L & A.L., P.G.D.C.A., P.G.D.P.M & I.R.,
Associate Professor of Commerce,
Commerce Research Centre,
S.B.K.College, Aruppukottai.
e-mail id : prcapk@gmail.com
Mobile: 9443424090 & 9080030090
TYPES OF CENTRAL EXCISE DUTIES

2. TYPES OF CENTRAL EXCISE DUTIES
 Basic Excise Duty (BED)
 Special Excise Duty (SED)
 Additional Excise Duty (AED)
 CESS
 National Calamity Contingent Duty (NCCD)

3. Basic Excise Duty
 Excise Duty, imposed on all excisable
goods other than salt produced (or)
manufactured in India.
 This duty is levied at the rates specified in
the Schedule-I to Central Excise Tariff
Act, 1985.
Currently, the general rate of excise duty
on non-petroleum products is 12%.
This duty is applicable to majority of the
excisable goods.

4. Special Excise Duty
 Some commodities like pan masala and
cars have special excise duties levied
on them. These items are covered
under Schedule-II to the Central
Excise Tariff Act, 1985.

5. Additional Excise Duty
Charged on goods listed in Schedule-III.
 This tax is shared between the Central
and State Governments and charged
instead of sales tax.
 It is levied with the object to either curb
the demand / consumption of a
particular commodity (or) generate
revenue resources from those
commodities.

6. Education Cess
 EC was levied on excisable goods
manufactured in India @ 3% (2% EC and
1% SHEC) of the aggregate duties of
excise levied on such goods.
 Education cess and SHEC leviable on
excisable goods are fully exempted by
Finance Act, 2015.
 i.e., No EC and SHEC shall be payable
w.e.f. 1-3-2015.

7. National Calamity Contingent
Duty (NCCD)
 It is imposed on pan masala, branded
chewing tobaccos, cigarettes,
domestic crude oil and mobile
phones.
 This rate is 1% on Basic Excise Duty.

8. Clean Energy cess
A clean energy cess has been imposed
w.e.f. 1-7-2010 on gross quantity of raw
coal, lignite and treat raised and
dispatched from a coal mine in India.
The rate of duty is ` 50 per ton and it
must be paid in cash.

9.  For an item to be considered goods for the purpose
of the levy of central excise duty, it must satisfy two
requirements:
1.Movability
Goods must be movable. Duty cannot be levied on
immovable property. Central excise duty cannot
imposed on plant and machinery.
2.Marketability
Goods must be marketable. The goods must be
known in the market and must be capable of being
bought (or) sold.

10.  As per Article 366(12) of the Constitution of India,
“Goods” means all materials, commodities and
articles.
 Materials – wood, timber etc., used by the carpenters.
 Commodities – chairs, tables etc., sold by the
furniture dealers.
 Articles – chairs, tables etc., used by a company in its
administrative office.
 It is not necessary that these can be seen, heard (or)
smelled, but they are being capable of being felt is
sufficient.
 Accordingly the Gas, Steam and Electricity etc. also
goods.
GOODS

11. GOODS
Excisable Non-Excisable
Dutiable
[including
partly
exempted]
Non
Dutiable
Nil
Duty
Fully
Exempted
Goods not
specified in Tariff
[i.e. CETA, 1985,
I Schedule]
Goods specified
in Tariff, but
rate of duty
is blank

12. EXCISABLE GOODS
 For the liability of duty of central excise to arise, the
item in question should not only be goods, it
should also be excisable goods .
 Articles which are included in the Central Excise
Tariff Act, 1985 (CETA) are called as Excisable
goods.
 i.e., Goods become excisable if and only if, it is
mentioned in the Central Excise Tariff Act, 1985.

13. Non - excisable goods
 Non – excisable goods are those goods which have
not been clearly mentioned in the CETA, 1985
before they are manufactured.
 i.e., - No rate has been specified against any goods
listed in the schedules then, such goods shall be
non – excisable goods.
 For example, Live Animals, mentioned in chapter 1
of 1st schedule to the Tariff, no duty has been
specified against them.

14. Dutiable goods
 Dutiable goods mean excisable goods
which have a rate of duty greater than 0%.

15. Non – dutiable goods
 Non–dutiable goods are those excisable goods
not liable to duty of excise on account of:
 1. Rate of duty being ‘NIL’ in the Tariff schedule;
 2. On account of 100% exemption;
 3. On account of any other reason;
i.e., not manufactured (or) not marketable.

16. Non – duty paid goods
Non-duty paid goods are different from
non-dutiable goods.
Non-duty paid goods are those, which are
removed clandestinely (i.e. secretly) without
invoice, to evade duty.

17. Exempted goods
Excisable goods do not become non – excisable
after being fully exempted by notification.
They continue to be listed in the schedules to the
Tariff as being subject to a duty of excise.

18. Nil – rated goods
Even goods with nil rate of duty, if find an entry
in the schedules to the Tariff, are excisable
goods, because nil rate is also a rate of duty.
Goods with nil rate of duty cannot be treated as
non – excisable.