Excise duty rationalization expands the taxable base, adds tobacco levies and introduces procedural reforms for compliance and appeals. Budget 2001-2002 consolidates excise rates into a single ad valorem structure centred on a 16% rate, imposes a new National Calamity Contingent duty on tobacco and related products, brings branded readymade garments and additional commodities into the excise net with altered SSI treatment, affirms CENVAT credit rules including on existing inputs and stock, and expands service tax to new categories while proposing self assessment and specified officer powers. On customs, surcharge abolition, CVD on MRP for packaged goods and other tariff adjustments are provided. Procedural reforms prescribe interest, voluntary payment of short levies, time limits for adjudication and replacement of long standing rules.