Types of Excise Duty - Basic Excise Duty, Special Excise Duty, Additional Excise Duty (Textile and Textile Articles)/AED (TTA) Additional Excise Duty (Goods of Specia lImportance)/AED (GSI) National Calamity Contingent Duty/NCCD Additional Duty of Excise Registration Procedure for Excise Duty

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Excise Duty Type & Registration
Procedure
Business Accounting & Taxation Program

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Types of excise duty
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Types of
Excise Duty
Basic Excise
Duty
AED
(TTA)
AED
(GSI)
Additional
Duty of
Excise
Special
Excise Duty
NCCD

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 The Following are the various types of Excise Duty–
 Basic Excise Duty:
• This duty is also known as CENVAT.
• It is levied under section 3(1)(a) of Central Excise Act.
• Currently the general rate of excise duty on non petroleum products is 12.5%.
 Special Excise Duty:
• It is levied under section 3(1)(b) of Central Excise Act.
• With effect from 01.03.2006, all goods falling in the second schedule of Central Excise Act
have been exempted from the Special Excise Duty.
 Additional Excise Duty (Textile and Textile Articles)/ AED (TTA) :
• This duty is leviable under section 3 of the Additional Duties of Excise (Textile and Textile
Articles)Act, 1978.
• With effect from 09.07.2004 all goods which were liable to AED (TTA) have been exempted
from the Special Excise Duty.
 Additional Excise Duty (Goods of Special Importance)/ AED (GSI) :
• This is levied in lieu of Sales tax and shared between Central and State Government.
• With effect from 01.03.2006 all goods which were liable to AED (GSI) have been exempted
from the such duty.

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 National Calamity Contingent Duty / NCCD:
• It is imposed vide section 136 of the Finance Act, 2001 on –
 Pan masala,
 Branded chewing tobacco,
 Cigarettes,
 Domestic crude oil,
 Mobile phones
 Additional Duty of Excise:
• It is imposed by way of surcharge on pan masala and certain specified tobacco, products
vide section 85 of the Finance Act, 2005.

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Registration Procedure for Excise Duty

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Registration procedure for Excise Duty
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 Every manufacturer of excisable goods other than the one specifically exempted is required
to get register under central excise law.
 Registration is also required for every prescribed person
 Who carries on trade or
 Hold private store room or
 Warehouse or
 Otherwise uses excisable goods or
 An importer who issues an invoice on which CENVAT credit can be taken.
 A manufacturer is exempt from registration as long as
 The goods manufactured is of nil rate of duty or
 Exempt from excise duty.
(SSI unit covered by SSI exemption notification are exempt form obtaining registration.
However, such units are required to give a declaration in a prescribed form once there
clearance value reaches 90 lakhs).
 After the assessee applies for registration-
 He is issued a registration number (registration number is based on PAN)
 The registration certificate is valid till the relevant unit is engaged in the manufacturing
of excisable goods. It is not required to be renewed.

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 Documents required for registration (self attested copies)
 PAN card copy of the company/firm
 PAN card copy of authorized signatory
 Ground plan of factory (which should also provide description of boundaries of premises to be
registered)
 List of directors/partners
 Memorandum and Articles of Association/Partnership deed
 General power of attorney (in case application is signed by authorized agent)
 Apart from these, department may also require certain additional documents, some of which are
mentioned hereunder:
 PAN card copy of directors/partners other than signatories
 Address proofs of the factory premises like:
 Copy of purchase agreement along with electricity bill, water bill etc., if factory is owned
 Copy of Leave and license agreement along with electricity bill, water bill etc., if factory is
taken on lease
 No objection certificate’ from the licensor and rent receipt may also be required
 Residence proof of directors/partners
 Registration Certificate under any other laws, if any

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Flow Showing Excise Duty Payable on Goods

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Flow Showing Excise Duty Payable on Goods
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Manufacture in India
Are the final products
movable?
Excise Duty not leviable
Are the final products
marketable?
Are all the goods
specified in Central
Excise Tariff as being
subject to a Duty of
Excise?
Manufacture does not result
in goods
Manufacture result in
goods
Non-
Excisable
goods
No
Yes
No
Yes
No
A
Yes

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Are all the goods
specified in Central
Excise Tariff as being
subject to a Duty of
Excise?
Manufacture result in
excisable goods
Whether goods are
chargeable to ‘NIL’ rate
of duty?
No excise duty payable
Exempted goods
Are the goods exempt
from payment of duty
vide any exemption
notification?
Excise Duty payable on
goods
Yes
Yes
No
No
Yes
A

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