Excisable goods

[Sanjay Sharma]

Dear Sir,

What is the actual definiton of 'Excisable' goods and Non- 'Exciable' goods, and what is the exempted goods and dutiable goods.

Regards'

Sanjay sharma

 

[YAGAY andSUN]

Section 2(d) of Central Excise Act defines Excisable Goods as ‘Goods specified in the Schedule to Central Excise Tariff Act, 1985 as being subject to a duty of excise and includes salt’. ‘Goods’ includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable.

Goods ‘excisable’ even if exempt from duty - ‘Excisable goods’ do not become non-excisable goods merely because they are exempt from duty by an exemption notification -. Wallace Flour Mills com ltd vs CCE (1989 (9) TMI 106 - SUPREME COURT OF INDIA)= 186 ITR 440 (SC) = 1989(2) SCALE 804 = 1989 (44) ELT 598 (SC) = (1989) 4 SCC 592.

Goods not included in CETA are ‘non-excisable goods’ - Some goods like wheat, rice, cut flowers, horses, soya beans etc. are not mentioned in Central Excise Tariff at all and hence they are not ‘excisable goods’, though they may be ‘goods’. These are ‘non-excisable goods’. Similarly, ‘waste and scrap’ will be ‘excisable goods’ only if specifically mentioned in CETA - CCE v. Amol Decalite Ltd. 1999  (1998 (8) TMI 210 - CEGAT, NEW DELHI)= (105) ELT 222 (CEGAT). In Western India Ceramics P Ltd. v. CCE1998(99) ELT 425 (CEGAT), it was held that broken glazed tiles are not excisable as there is no specific entry (in Tariff) for it.

Further, the ‘excisable goods’ are liable to duty only if they are ‘manufactured’ or ‘produced’.

Goods excisable even if duty is nil – If by virtue of an exemption notification, the rate of duty is reduced to NIL, the goods specified in the tariff would still be regarded as excisable goods on which NIL rate of duty was payable.

[Sanjay Sharma]

Thanks a lot,

Regards,

Sanjay Sharma

 

AI Summary

Excisable goods remain excisable despite exemption; absence from the tariff renders goods non-excisable. Excisable goods are those specified in the Central Excise Tariff and remain excisable even if an exemption notification reduces the duty to nil; goods not listed in the Tariff are non-excisable. Liability to excise additionally depends on the goods being manufactured or produced, and items such as waste and scrap are excisable only if specifically included in the Tariff.