Section 3A - Power of Central Government to charge excise duty on the basis of capacity of production in respect of notified goods

Excise Duty Calculation Based on Factory Production Capacity Under Section 3A of Central Excise Act 1944

Section 3A of the Central Excise Act, 1944 empowers the Central Government to levy excise duty based on the production capacity of factories producing notified goods. This provision allows the government to specify goods and determine the factory's annual production capacity, which is deemed as the actual production for duty calculation. The duty rate is prescribed by notification, with abatements allowed for non-production periods exceeding fifteen days. This section excludes goods produced by 100% export-oriented undertakings. The provision clarifies that excise duty on notified goods aligns with the Customs Tariff Act, 1975.