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FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
Subject FORENSIC SCIENCE
Paper No and Title PAPER: 5, Forensic Chemistry & Explosives Module No and Title MODULE: M20, Excise Act
Module Tag FS_P5_M20
TABLE OF CONTENTS 1. Learning Outcomes
2. Introduction: Central Excise Act, 1944 3. Historical Perspective
4. Different Provisions of Central Excise Act 5. Important Definitions of Central Excise Act 6. Types of Central Excise Duties
7. Levy & Collection of Central Excise Duty 8. Presumption as to Document
9. Summary
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FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
1. Learning Outcomes
After studying this module, you shall be able to know
· What is Central Excise Act?
· About its historical background and different provisions
· About Central Excise Duties & their levy and collection, and
· About the presumptions as to document in Central Excise Act?
2. Introduction: Central Excise Act, 1944
In the most simple form, excise may be defined as any duty, toll or tax imposed upon the
consumption or sale or manufacture of commodities in a country or tax upon certain trades, sports or occupations; generally taking as fees or licenses.
In order to systematize the taxation system “The Central Excises Act, 1944” was passed. It is the basic Act which deals the charging of duty, valuation of goods, administrative & penal
provisions. This act has 7 Chapters containing 40 Sections & now only one Schedule i.e. II Schedule which has only one word 'Tobacco', on the possession of which Section 8 places a restriction. Schedule is no more part of this act now.
3. Historical Perspective
If we closely examine different texts from ancient history, we would find that excise system is not a new system. It is ancient system of taxation that is used by several emperors for the purpose of indirect taxation. Chanakya in his book "Arthashastra" has discussed elaborately the system of Excise taxation wherein tax on manufacture of salt, alcohol, textiles, etc was advocated. Evidences of excise system were also found from the Mughal times. Coming to modern times, Excise was first imposed by British in 1894 on Cotton, in 1917 on motor spirit & on spirits in1922.
The Central Excise Act, 1944 was received by the Governor General of India for his assent on 24.02.1944.
After the independence of India, Article 246 of Indian Constitution granted Central Government the authority to impose & collect Excise Duty
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FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
on Tobacco & other Goods produced in India except opium, potable alcohol and other narcotic substances. Initially this Act was known as ‘Central Excise and Salt Act’ but in the Year 1996, the word “Salt” was omitted.
4. Different Provisions of Central Excise Act
The Act is divided into 7 Chapters containing 40 Sections and, now, only one Schedule, namely Schedule II. The chapter-wise contents of this act are:
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FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
5. Important Definitions of Central Excise Act Excisable Goods
Factory
Manufacture
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FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
Sale & Purchase
Wholesale Dealer
6. Types of Central Excise Duties
These duties are of five types:
1) Basic Excise Duties:
These are imposed on a vast variety of goods categorized in the schedule of Central Excise Act, 1985. Its levy could be based on ad- valoren, specific or any fixed value of tariff.2) Special Duties:
These are imposed under the annual finance Act.3) Additional Excise Duty in lieu of Sales Tax:
These are imposed under the Additional Duties Act, 1957.4) Excise Duty Cessation under Specific Act
5)
Additional Duties Leviable on Specific Items:
These are imposed on various industries under several enactments.Excise duty levycould be based on one of the given grounds:
a) Specific Duty:
It is calculated in terms of unit measures of commodity such as per litre or per dozen. The type and value of commodity is immaterial.b) Ad valorem Duty:
It is levied on the base value of the commodity like 15% of product’s value. Here the incidence of duty varies from product to product & manufacturer to manufacturer.c) Specific cum Ad valorem Duty:
The duty is laid on a combination formula.d) Duty on fixed tariff value:
The Government in certain cases may fix tariff value of an article.____________________________________________________________________________________________________
FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
7. Levy & Collection of Duty of Central Excise
7.1 Who is liable to pay Excise Duty?
It is a duty on the manufacture of India. Production is thus, the taxable event. In other words, the person who manufactures any taxable product would be liable to pay the excise duty.
7.2 What is subject to Excise Duty?
According to Sec. 3(1), all excisable goods produced within India are subject to this duty. These goods are mentioned in the Schedule of Central Excise Tariff Act, 1985 & duty is to be paid upon them at the rates specified therein. The Central Govt. has power to fix or vary tariff values of articles by means of issuing a notification in the Official Gazette.
8. Presumption as to Documents
SECTION 36A.
Presumption as to documents in certain cases —____________________________________________________________________________________________________
FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
SECTION 36B.
Admissibility of micro films, facsimile copies of documents & computer Printouts, as documents & as evidence —____________________________________________________________________________________________________
FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
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FORENSIC SCIENCE PAPER No.5: Forensic Chemistry & Explosives MODULE No. 20 : Excise Act
9. Summary
· In the most simple form, excise may be defined as any duty, toll or tax imposed upon the consumption or sale or manufacture of commodities in a country or tax upon certain trades, sports or occupations; generally taking as fees or licenses.
· In order to systematize the system of taxation “The Central Excises Act, 1944” was passed. It is the basic Act which deals the charging of duty, valuation of goods, administrative & penal provisions.
· This act has 7 Chapters containing 40 Sections and only one Schedule i.e. Schedule II.
· Excise duties are of following five types i.e. basic excise duties, special duties, additional excise duty in lieu of sales tax, additional duties leviable on specific items and cesses of excise duty under specific act.
· Excise is a duty on produced or manufacture in India. Production or manufacture is the taxable event.
· According to Sec. 3(1), Excisable goods manufactured in India are subject to excise duty.
· Section 36A deals with presumption as to documents in certain cases while Section 36B deals with admissibility of micro films, facsimile copies of documents & computer printouts, as documents & as evidence.
