TMI BlogFAQ ON CENTRAL EXCISEX X X X Extracts X X X X X X X X Extracts X X X X ..... e act of sale while the latter is a tax on the act of manufacture or production of goods. 2. Whether a manufacturer or producer of goods is required to obtain a license from the Central Excise department for payment of Central Excise duty? No license is required and a simple registration with the Central Excise department would suffice. 3. What categories of persons are required to obtain registration with the Central Excise department? Subject to specified conditions, generally the following categories of persons are required to get themselves registered with the Central Excise department: (i) Every manufacturer of dutiable excisable goods; (ii) First and second stage dealers or importers desiring to issue Cenvatable invoices; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to pay Central Excise duty? The manufacturer who actually undertakes manufacturing activity is liable to pay Central Excise duty. A person does not become a manufacturer simply by supplying raw materials to the manufacturer or getting his goods manufactured according to his own specifications, brand name or trade name, etc. However, for the textile sector, the option is with the supplier of raw materials or with the job worker to pay duty. 8. What is the rate of duty on various category of goods? The rate of duty on each item is specified in the Central Excise Tariff Act, 1985 . In some cases, the statutory rates of duty have been lowered or reduced to Nil by the Central Government in terms of Section 5A of the Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment). Other units are required to pay duty on monthly basis within 5 days (6 days in case of e-payment) of completion of the month in question. The assessee is required to deposit the amount of duty payable in the nominated bank along with the prescribed GAR-7 Challan and on this amount being credited in the government account, he can take credit in the PLA register. Such credited amount can then be utilized for discharging the duty on goods cleared from his factory. However, for the month of March, the duty has to be paid by 31 st March, both for SSI and Non SSI units. Further, in case of default in payment of duty, the interest is leviable @ 13% starting from the date on which the duty was required to be paid till the date of payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and effects clearance. For more details, please contact the nearest Central Excise Range Office. 15. Whether Central Excise registration is separately required by 100% EOU? No. The licence granted by the jurisdictional Customs Officer under Section 58 of the Customs Act, 1962 is sufficient. However, in case of clearance of goods to Domestic tariff area (D.T.A.), Registration is required under the Act. 16. What benefit does a 100% Export Oriented Unit get from the Central Excise? Subject to prescribed conditions, no Excise/Customs duty is payable on the capital goods, raw materials, spares, consumables, etc imported/indigeneously procured by the 100% EOU. 17. What is the procedure to be followed for setting up a 100% EOU? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ysical Control System" was replaced by "Self Removal Procedure" signalling the change of attitude of the Department towards the assessees. 1986: MODVAT scheme (presently known as CENVAT Scheme) was introduced to facilitate the manufacturers to set off the duty paid on the inputs and capital goods against the duty payable on the final products. 1994: Service Tax, the new concept of levying tax on the services was introduced for the first time with an initial coverage of 3 services. The coverage has now expanded to 106 services. 1994: The gate pass system for clearance of Excisable goods based on the authentication of the Officers of the Department was replaced with Invoice system facilitating the assessees to remove the goods bas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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