Excise and service tax reform restructures excise bands, expands service tax scope, and tightens cenvat and valuation rules. The Finance Bill, 2003 restructures excise into consolidated ad valorem bands while retaining special treatments for tobacco and petroleum, imposes new and revised excise and specific duties (including temporary NCCD levies), and reforms textiles taxation by removing exemptions, withdrawing deemed credit and extending Cenvat through to garments. Service tax is proposed to rise and its scope broadened to multiple services with tightened credit and payment rules. Valuation rules and depot/place of removal definitions are clarified, monthly duty payment and default interest regimes are reformed, and retrospective amendments limit diversion of input credit and require revision and recovery of past benefits.