TaxTMI 
TaxTMI 
FROM SOVEREIGNTY TO SHARED CONTROL: WHY EXCISE DAY STILL MATTERS FOR CBIC By G. Jayaprakash Advocate
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....ROM SOVEREIGNTY TO SHARED CONTROL: WHY EXCISE DAY STILL MATTERS FOR CBIC By G. Jayaprakash Advocate<br>By: - Jayaprakash Gopinathan<br>Central Excise<br>Dated:- 23-6-2025<br>The introduction of the Goods and Services Tax (GST) on 1st July 2017 was a watershed moment in India's fiscal evolution. In recognition of this shift, the Central Board of Indirect Taxes and Customs (CBIC) now celebrates 1st July as GST Day, reflecting a new era of cooperative federalism and unified taxation. However, in doing so, CBIC seems to have quietly edged out Central Excise Day, traditionally observed on 24th February each year since 1994. This quiet withdrawal is not just symbolic-it risks undermining a proud legacy and eroding the distinct identity of Centra....
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....l Tax administrators who helped build India's indirect tax architecture. There is an urgent need for CBIC, and particularly CGST officials who continue to enforce Central Excise Act and Rules to continue commemorating Central Excise Day alongside GST Day, not only to honour history but to retain institutional continuity and morale. Excise: The Backbone of India's Pre-GST Fiscal Framework Long before GST emerged as the emblem of tax reform, Central Excise was the principal source of indirect tax revenue for the Union Government. Under the Central Excise Act, 1944, this tax regime nurtured a cadre of highly skilled officers who developed deep legal, procedural, and technical expertise in tax assessment, classification, valuation, and enforc....
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....ement. Crucially, the Central Excise Act is still very much in force. It continues to govern the taxation of items like petroleum products and tobacco, which remain outside the purview of GST. Excise, therefore, is not obsolete-it is a functioning and critical component of India's tax ecosystem. The Excise Officer: More Than a Tax Collector Few have captured the role of the Excise officer more aptly than Justice Harvey Perry, who observed: "The Excise man is less a tax collector than a combination of policeman, accountant, and chemist. He rules his field of manufacturing with almost undisputed sovereignty." This powerful statement reflects the multifaceted expertise and regulatory authority historically vested in excise officer....
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....s. Unlike mere tax collectors, excise personnel were custodians of compliance, enforcers of statutory discipline, and technical evaluators of processes and substances. Their reach extended far beyond revenue-it encompassed law, order, and industrial integrity. Such was their domain that they often exercised near-sovereign control over manufacturing units, ensuring accurate duty determination and deterring evasion through a unique blend of vigilance and technical acumen. Eroding Exclusivity in the GST Era With GST, the traditional autonomy of central tax officers has been curtailed. The dual control model necessitates joint administration with State GST (SGST/UTGST) officers, leading to shared responsibilities in assessment, audit, and en....
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....forcement. The once clearly demarcated territory of the Centre has been replaced by administrative parity, diluting both authority and recognition. In this environment, the distinctiveness of CGST officers is at risk of being subsumed under the broad federal umbrella. Discontinuing the celebration of Central Excise Day only deepens this identity erosion. Why Central Excise Day Still Matters: It is to be reiterated that any organisation has to be proud of its past if it wishes to stand tall in its future. Discontinuing the celebration of Central Excise Day does more than over look a date -it risks serving ties with a proud institutional identity forged over decades. The relevance of Central Excise is not merely historical; it continues t....
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....o resonate in law, administration, and officer morale. Here's why its observance remains essential: * Institutional Heritage: CBIC's institutional history is deeply rooted in customs and excise. To forget Central Excise Day is to forget where this institution came from. The Central Excise administration is not just a footnote in India's fiscal history-it is a foundational pillar. The very fabric of the CBIC, its training academies, legal interpretations, enforcement protocols, and administrative practices were deeply shaped by decades of excise work. From the physical control regime to self-assessment, from gate passes to valuation rulings, every major evolution in tax administration was pioneered in excise. Celebrating Central Excise Day....
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.... is a recognition of this institutional backbone-a tradition of precision, vigilance, and service that laid the groundwork for today's GST regime. To ignore this heritage is to undervalue the core from which the current framework evolved. * Legal Continuity: The Central Excise Act still operates, and officers continue to administer duties under it. Even after the implementation of GST, the Central Excise Act, 1944 has not been repealed. It continues to govern the taxation of certain high-revenue and politically sensitive commodities such as petroleum products, tobacco, and certain narcotics, which have been kept outside the GST net. CGST officers continue to assess and collect central excise duty on these items, especially in large manufa....
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....cturing installations. Thus, excise remains an active field of legal and administrative responsibility, not a relic. Discontinuing Excise Day sends a misleading message that this law and its administrators are now irrelevant, when in fact they are still critical to the nation's revenue system. Celebrating its day reinforces its ongoing relevance. * Officer Identity and Morale: The pre-GST era saw the development of a uniquely central cadre of officers under the CBEC (now CBIC), who handled central excise, customs, and service tax. These officers developed distinct specialisations-technical valuation, classification, chemical analysis, preventive operations, adjudication-which defined their professional identity. In the GST regime, where p....
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....arity with State officials is constitutionally embedded, this distinctive role has been blurred. Celebrating Central Excise Day affirms that the officers' contribution in shaping the indirect tax landscape is not forgotten. It provides an emotional and professional anchor, reinforcing a sense of pride, purpose, and institutional loyalty. Acknowledging the excise legacy boosts morale among officers who served in that era and instils a sense of pride and continuity among newer recruits. * Complementarity, Not Conflict: Celebrating GST Day does not require discarding Excise Day. One marks the journey ahead; the other honours the path travelled. There is a tendency to view Excise Day and GST Day as mutually exclusive, but in truth, they serve....
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.... complementary purposes. GST Day marks a structural reform, a forward-looking transformation in tax architecture. Excise Day marks an institutional legacy, honouring a professional culture, technical capacity, and administrative lineage. Both deserve recognition. Mature institutions celebrate evolution without erasing origin. Retaining Excise Day acknowledges that reforms like GST are built not in a vacuum, but upon the scaffolding of past systems and people who sustained them. It also encourages intergenerational continuity-helping newer officers understand where they come from and what values shaped the service they inherit. * Excellence in Governance: The excise regime honed skills in investigation, valuation, and adjudication-skills t....
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....hat continue to benefit GST administration. Central Excise was never a mere revenue collection department. It was a laboratory of governance innovation, where classification disputes sharpened legal interpretation, physical control measures ensured compliance, and valuation complexities refined administrative judgment. The department produced notable jurisprudence through CESTAT and higher courts, and generated pioneering manuals, circulars, and audit techniques that continue to inform GST enforcement. The excise experience also nurtured specialists who contributed to policy formulation and anti-evasion mechanisms that are now embedded in GST. Celebrating Excise Day is a tribute to this tradition of governance excellence, which should be pr....
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....eserved, documented, and passed on-not quietly shelved. Conclusion: Don't Let the Legacy Fade GST may represent the present and future of taxation in India, but Central Excise represents its foundation. Officers of the CBIC-particularly those in CGST-owe much of their training, evolution, and authority to the principles forged under the Excise regime. Harvey Perry's words ring truer than ever: the Excise officer was never just a tax man-he was an institution in himself. To truly honour this legacy, CBIC must not replace Central Excise Day with GST Day. Rather, it should celebrate both-one to remember where we came from, and the other to look forward to where we are going. In fact, the present political executive has consistently placed ....
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....great emphasis on honouring India's civilisational and institutional heritage-whether in restoring cultural symbols, remembering forgotten freedom fighters, or reviving traditional institutions. In this spirit, preserving Central Excise Day aligns perfectly with the national ethos of valuing and learning from the past while shaping the future. HOPE CBIC WILL HEAR THIS.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....