What is the actual definiton of "Excisable" goods and Non- "Exciable" goods, and what is the exempted goods and dutiable goods.
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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’. ‘Goods’ includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable.
Goods ‘excisable’ even if exempt from duty - ‘Excisable goods’ do not become non-excisable goods merely because they are exempt from duty by an exemption notification -. Wallace Flour Mills com ltd vs CCE (1989 (9) TMI 106 - SUPREME COURT OF INDIA)= 186 ITR 440 (SC) = 1989(2) SCALE 804 = 1989 (44) ELT 598 (SC) = (1989) 4 SCC 592.
Goods not included in CETA are ‘non-excisable goods’ - Some goods like wheat, rice, cut flowers, horses, soya beans etc. are not mentioned in Central Excise Tariff at all and hence they are not ‘excisable goods’, though they may be ‘goods’. These are ‘non-excisable goods’. Similarly, ‘waste and scrap’ will be ‘excisable goods’ only if specifically mentioned in CETA - CCE v. Amol Decalite Ltd. 1999 (1998 (8) TMI 210 - CEGAT, NEW DELHI)= (105) ELT 222 (CEGAT). In Western India Ceramics P Ltd. v. CCE 1998(99) ELT 425 (CEGAT), it was held that broken glazed tiles are not excisable as there is no specific entry (in Tariff) for it.
Further, the ‘excisable goods’ are liable to duty only if they are ‘manufactured’ or ‘produced’.
Goods excisable even if duty is nil – If by virtue of an exemption notification, the rate of duty is reduced to NIL, the goods specified in the tariff would still be regarded as excisable goods on which NIL rate of duty was payable.
Thanks a lot,