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Customs & Excise Laws

Common questions on ‘Customs & Excise laws’

• What is custom and excise law?
• What is the governing act for customs and excise in India?
• What is rate of duty on various category of goods?
• What is period for filing returns by assessee?
• Who is liable to pay central excise duty?

Custom duties are a source of revenue in India. They are a type of tax, and the governing law for Customs is the Customs Act, 1962.

As per Section 12 of the Customs Act 1962, charges are applied on the imported/exported goods (known as custom duties). The rates of these charges are spoken of in the Customs Tariff Act, 1975. The Union Government can exempt certain goods from the purview of custom duties on the conditions which the Union government deems fit.

As per the Customs Act 1962, a hierarchy of authorities exists for the purposes of adjudicating disputes which can arise between the customs authorities & the exporters/importers. In the 1st instance the adjudication is taken up before officers of the rank of Assistant Commissioner or Joint Commissioner or Additional Commissioner. In specific conditions debate might be arbitrated by a Commissioner. Either party (the assessee and additionally the traditions expert) distressed by a request go by an Assistant Commissioner or Joint Commissioner or Additional Commissioner may document in offer before the investigative specialist known as the Commissioner of Customs (Appeals). A moment claim lies before the Customs Excise and Service Tax Appellate Tribunal. In any case, if in the principal occurrence the question is settled by an officer of the rank of Commissioner, an interest would likewise mislead the Customs Excise and Service Tax Appellate Tribunal. Against requests of the Customs Excise and Service Tax Appellate Tribunal two surges of advances are examined. On the off chance that the issue identifies with either the characterization or valuation of products, an interest deceives the Supreme Court of India. In different cases an interest misleads the jurisdictional High Court. In any case, such an interest to the High Court would just lie if the interest includes a considerable inquiry of law.

Excise taxes unlike customs duties are charges on goods that have been produced within a country. The governing laws for matters concerning excise duties are Central Excise Act 1994, Central Excise Tariff Act 1985, and Central Excise Rules 1944.

Central Excise Act 1994 is the basic law related to the levy and collection of duties of central excise. However this Act does not contain the rate at which duties are imposed.

Central Excise Tariff Act 1985 classifies various goods on which central excise duties are levied and prescribes the rates at which the duty is payable.

Central Excise Rules 1944 makes an obligation for all manufacturers of excisable goods to be registered under these rules. The registration is valid a long as production activity continues and no renewals are necessary.

Excise duty is not directly on the goods, but manufactured thereof. Though both excise duty and sales duty levied with reference to goods, the two are very different imposts. In one case, the imposition is on the act of manufactured or production, while in the other it is on the act of sale.