Central Excise (India)
|Seal of the Central Excise|
|Formed||26 Jan 1944|
|Legal personality||Governmental: Government agency|
|Governing body||Government of India|
|Headquarters||New Delhi, India|
|Parent agency||Central Board of Excise & Customs|
|Child agency||Preventive & Economic Division|
Central Excise is a Governmental body which is run by the Central Board of Excise and Customs. Central Government under the authority of Entry 84 of the Union List (List 1) under Seventh Schedule read with Articles 268 to 281 of the Constitution of India.
The Central Excise duty is levied in terms of the Central Excise Act, 1944 and the rates of duty, ad valorem (on value) or specific, are prescribed under the Schedule I and II of the Central Excise Tariff Act, 1985. The taxable event under the Central Excise law is ‘manufacture / production’ and the liability of Central Excise duty arises as soon as the goods are manufactured or produced. As per the Central Excise Act, duty is liveable only on excisable goods. i.e., Goods specified in Central Excise Tariff Act, 1985.
The Central Excise Officers are also entrusted to collect other types of duties levied under Additional Duties (Goods of Special Importance) Act, Additional Duties (Textiles and Textiles Articles) Act, Cess, etc.
Till 1969, there was physical control system wherein each clearance of manufactured from the factory was done under the supervision of the Central Excise Officers. Introduction of Self-Removal procedure was a watershed in the excise procedures. Now, the assesses were allowed to quantify the duty on the basis of approved classification list and the price list and clear the goods on payment of appropriate duty.
In 1994, the gate pass system gave way to the invoice-based system, and all clearances are now effected on manufacturer’s own invoice. Another major change was brought about in 1996, when the Self-Assessment system was introduced. This system is continuing today also. The assesses himself assesses his Tax Return and the Department scrutinises it or conducts selective audit to ascertain correctness of the duty payment. Even the classification and value of the goods have to be merely declared by the assesses instead of obtaining approval of the same from the Department.
In 2000, the fortnightly payment of duty system was introduced for all commodities, an extension of the monthly payment of duty system introduced the previous year for Small Scale Industries.
In 2001, new Central Excise (No.2) Rules, 2001 have replaced the Central Excise Rules, 1944 with effect from 1 July 2001. Other rules have also been notified namely, CENVAT Credit Rules, 2001, Central Excise Appeal Rules, 2001 etc. With the introduction of the new rules several changes have been effected in the procedures. The new procedures are simplified. There are less numbers of rules, only 32 as compared to 234 earlier. Classification declaration and Price declarations have also been dispensed with, the CENVAT Declaration having been earlier dispensed with in 2000 itself.
The Central Excise law is administered by the Central Board of Excise and Customs (CBEC or Board) through its field offices, the Central Excise Commissionerates. For this purpose, the country is divided into 23 Zones and a Chief Commissioner of Central Excise heads each Zone. There are total 92 Commissionerates in these Zones headed by Commissioners of Central Excise. Divisions and Ranges are the subsequent formations, headed by Deputy/Assistant Commissioners of Central Excise and Superintendents of Central Excise, respectively.
For enforcing the central excise law and collection of Central Excise duty the following types of procedures are being followed by the Central Excise Department:
- Physical Control – Applicable to cigarettes only. Here assessment precedes clearance which takes place under the supervision of Central Excise officers;
- Self-Removal Procedure – Applicable to all other goods produced or manufactured within the country. Under this system, the assesses himself determines the duty liability on the goods and clears the goods.
Functions and duties
The Central Board of Excise & Customs (CBEC) (Department of Revenue, Ministry of Finance, Govt of India) is responsible for formulation of policy relating to levy and collection of Indirect Taxes namely Customs, Central Excise and Service Tax. The CBEC also exercises overall supervision over Customs, Central Excise and Service Tax field formations located all over the country. The Board discharges various tasks assigned to it, with the help of various Directorates headed by officers of the rank of Director General (Addl Secy rank) and Director (Jt Secy rank)
At the field level there are 34 zones headed by Chief Commissioners of Central Excise and Customs, who are exercising supervision over the various Commissioners under their charge. There are 93 Central Excise Commissionerates in the country headed by Commissioners of Central Excise. These Commissionerates are entrusted with the task of collection of duties in notified territorial jurisdiction of the Commissionerate and related Administrative functions. Most of the Commissionerates also deal with work relating to Service Tax & Customs in their jurisdiction. There are also 67 posts of Commissioners of Central Excise (Appeals) who decide statutory appeals against the orders of officers of the rank of Addl/Jt Commrs and Dy/Asst Commrs and 4 posts of Commissioners of Central Excise (Adjudication), who decide large and complicated Adjudication cases wherein jurisdiction of more than one Commissionerate is involved.
Executive Officers -
Chief Commissioner (Zone Incharge)
Commissioner (Commissionerate Incharge)
Addl. Commissioner (Commissionerate Second Incharge)
Deputy / Asstt. Commissioner (Division Incharge)
Superintendent (Range Incharge)
Sr. Inspector / Inspector (Section Incharge)
Head Havaldar (Section Assistant)
Havaldar / Sepoy (Section Assistant)
Ministerial Officers -
Chief Accounts Officer
Sr. Tax Assistant
Lower Divisional Clerk
For the past 8–9 years Central Excise Department is facing problems regarding promotions of Superintendent & Inspectors rank Officers. Many Officers are forced to retire with only one promotion even after 30–35 years of service. But now finally the Finance Ministry has taken some major steps by increasing the post of Deputy Commissioner & Assistant Commissioner (IRS) rank. With the Cadre Restructure enforced the Superintendents of Central Excise will get guaranteed promotion to IRS rank. The Cadre Restructure Bill also offers Indian Revenue Service(C&CE) officers to get Super HAG+ rank, which was earlier given only to IAS & IPS Officers.