qwertyuiopasdfghjklzxcvbnmqwertyui

opasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqwertyuiopas
INDIAN CUSTOM ACT 1962
dfghjklzxcvbnmqwertyuiopasdfghjklzx
&
THE CENTERAL EXCISE ACT 1944
cvbnmqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmrty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc

 Name: Monit Panchal

Roll No: 24

Batch: PGDM 2013-15 (Sem 3)

Subject: Legal Aspects of Business

Assignment: INDIAN CUSTOM ACT 1962 & THE CENTERAL EXCISE ACT 1944

Date of Submission: 15th November 2014

Submitted To: Prof. Shaurya Gohil

INDEX
Central Board of Excise and Customs ........................................................................................................... 4
Duties ........................................................................................................................................................ 4
Central Excise & Customs...................................................................................................................... 4
Customs................................................................................................................................................. 4
Central Bureau of Narcotics .................................................................................................................. 5
INDIAN CUSTOM ACT 1962 ....................................................................................................................... 5
Introduction .......................................................................................................................................... 5
History of Indian Customs ......................................................................................................................... 6
Decline in Customs Duty ........................................................................................................................... 7
Custom Act ................................................................................................................................................ 8
Types of custom Duty ............................................................................................................................... 8
Indian Custom Anti Dumping Duty ..................................................................................................... 11
Custom Rules .......................................................................................................................................... 12
Central excise act 1944 ............................................................................................................................... 17
History of central Excise .......................................................................................................................... 17
Administration ........................................................................................................................................ 18
Functions and duties ............................................................................................................................... 19
Hierarchy ................................................................................................................................................. 20
Tax Assistant ....................................................................................................................................... 20
Cadre Restructure ................................................................................................................................... 20

Central Board of Excise and Customs

The Central Board of Excise and Customs is the nodal national agency responsible for
administering Customs, Central Excise, Service Tax & Narcotics in India.
The Customs & Central Excise department was established in the year 1855 by the
then British Governor General of India, to administer customs laws in India and
collection of import duties / land revenue. It is one of the oldest government
departments of India.
Currently the Customs and Excise department comes under the Department of
Revenue, Ministry of Finance. The agency is staffed by IRS officers who start their
careers as Assistant Commissioners in the field and within 2025 years rise to the post
of Chief Commissioners, with a few senior most officers who become Members of
CBEC / CESTAT / Settlement Commission.
The Central Board of Excise & Customs (CBEC) is headed by Chairperson CBEC and
consist of six Members of CBEC.
1.
2.
3.
4.
5.
6.
7.

CBEC Chairperson - Mr. Kaushal Srivastav,IRS

Member Customs - Ms. Mala Srivastava,IRS
Member Service Tax - Mr Shashi Bhushan Singh,IRS
Member Central Excise - Mr. Shashi Bhushan Singh,IRS (Additional Charge)
Member Personnel & Vigilance - Mr. Ms. Joy Kumari Chander
Member Legal & Judicial - Ms. Mala Shrivastav,IRS (Additional Charge)
Member Budget - Mr. Kaushal Srivastav,IRS (Additional Charge)

Duties
Central Excise & Customs
1. Collection of Excise Duty & Service Tax.
2. Collection of Customs Duty on Land Customs Station, ICD's, SEZ's, Container
Freight Station.
3. Prevention of Smuggling through Land Customs Station & Border Check Points.

Customs
1. Collection of Customs Duty on International Airports, Seaports, Custom Houses,
International Air Cargo Stations & International ICD's.
2. Prevention of Smuggling on International Airports & Sea

Central Bureau of Narcotics

1. Collection of Narcotics Duty in Madhya Pradesh, Utter Pradesh & Rajasthan.
2. Prevention of drug trafficking and the abuse of illegal substances.

INDIAN CUSTOM ACT 1962

Introduction
Custom Duty is imposed under the Indian Customs Act formulated in 1962 by the
Constitution of India under the Article 265, which states that no tax shall be levied
or collected except by authority of law. So, the Indian Custom Act was introduced
that allow the Central Government to collect the taxes under the name of Custom
Duty.
Custom Duties are usually levied with ad valorem rates and their base is determined
by the domestic value 'theimported goods calculated at the official exchange rate.
Similarly, export duties are imposed on export values expressed in
domestic currency.
Export duties are levied occasionally to clear up excess profitability in international
price of goods in respect of which domestic prices may be low at given time. But the
concept of import duty is wide and almost universal, except for a few goods like food
grains, fertilizer, life saving drugs and equipment etc.
The Indian Customs Duties are major source of revenue for the Union Government and
constitute around 30% of its tax revenues. Together with Central Excise duties, the
contribution amount to nearly three-fourth of total tax revenue of the Union
Government.
Custom duty not only raises money for the Central Government but also helps the
government to prevent the illegal imports and illegal exports of goods from India.
The Central government has emergency powers to increase import or export duties
whenever necessary after a notification in the session of Parliament.

History of Indian Customs

The Custom Duty in its present form dates back to 1786, when Bruisers formed the
first Revenue Board in Calcutta. In 1808, a new Trade Board was introduced
for export and import of goods from India. Once again, in 1859 Customs Duties Act
was introduced in which provincial import duties were replaced by uniform Tariff Act
and was applicable to all Indian territories within the country.
In the subsequent year several changes in the Custom Policy took places and are as
follow:

Sea Customs Act was passed by Government in 1878.

Indian Tariff Act was passed in 1894.
Air Customs having been covered under the India Aircrafts Act of 1911,
Land Customs Act was passed in 1924.
After Independence, the Sea Customs Act and other allied enactments were repealed
by a consolidating and amending legislation entitled the Customs Act, 1962 (CA).
Similarly the Act of 1934 was repealed by theCustoms Tariff Act, 1975(CTA).
Governing Body
As per Section12 of the India Customs Act, Custom Duty is imposed on Goods,
belonging to Government as well as goods not belonging to Government. Section
2(22), gives inclusive definition of goods' as - 'Goods' includes:
Goods
As per Section12 of the India Customs Act, Custom Duty is imposed on Goods,
belonging to Government as well as goods not belonging to Government. Section
2(22), gives inclusive definition of goods' as - 'Goods' includes:

Vessels, aircrafts and vehicles

Stores
Baggage
Currency and negotiable instruments and
Any other kind of movable property.
Objectives of Custom Duties

The customs duty is levied, primarily, for the following purpose:

Restricting Imports for conserving foreign exchange.

Protecting Indian Industry from undue competition.
Prohibiting imports and exports of goods for achieving the policy objectives of the
Government.
Regulating export.
Co-coordinating legal provisions with other laws dealing with foreign exchange such
as Foreign Trade Act,Foreign Exchange Regulation Act, Conservation of Foreign
Exchange and Prevention of Smuggling Act,etc.
Mode of Levy of Customs Duty
Basically there are three modes of imposing Customs Duty:
1. Specific Duties: - Specific custom duty is a duty imposed on each and every unit
of a commodity imported or exported. For example, Rs.5 on each meter of cloth
imported or Rs.500 on each T.V. set imported. In this case, the value of
commodity is not taken into consideration.
2. Advalorem Duties: Advalorem custom duty is a duty imposed on the total value
of a commodity imported or exported. For example, 5% of F.O.B. value of cloth
imported or 10% of C.LF. value of T.V. sets imported. In case of Advalorem
custom duty, the physical units of commodity are not taken into consideration.
3. Compound Duties: - Compound custom duty is the combination of specific and
advalorem custom duties. In this case, the quantities as well as the value of the
commodity are taken into consideration while computing tariff. For example, 5%
of F.O.B. value plus, 50 paisa per meter of cloth imported.

Decline in Customs Duty

Indias customs tariff rates have been declining since 1991. The peak rate has
come down from 150% in 1991-2 to 40% in 1997-98. The downward momentum was
reversed the next year with the imposition of a surcharge. This momentum has
resumed with the reduction of the peak rate to 35% in 2001-2 and 30% in 2002-3.

Custom Act
There are two Acts, which form part of Customs Law in India, namely, the Customs
Act.1962 and Customs Tariff Act, 1975:
The Customs Act, 1962
The Customs Act. 1962 is the basic Act for levy and collection of customs duty in
India. I contain various provisions relating to imports and exports of goods and
merchandize as well as baggage of persons arriving in India. The main purpose of
Customs Act, 1962 is the prevention of illegal imports and exports of goods. The Act
extends to the whole of the India. It was extended to Sikkim w.e.f 1st October 1979.
The Customs Tariff Act, 1975
All goods imported or exported from India at the rates specified under the Customs
Tariff Act, 1975.The Act contains two schedules - Schedule 1 gives classification and
rate of duties for imports, while schedule 2 gives classification and rates of duties for
exports. In the present Act, the Tariff Schedule was replaced in 1986. The new
Schedule is based on Harmonised System of Nomenclature (HSN) the internationally
accepted Harmonised Commodity Description and Coding System.

Types of custom Duty

While Customs Duties include both import and export duties, but as export
duties contributed only nominal revenue, due to emphasis on raising competitiveness
of exports, import duties alone constituted major part of the revenue from Customs
Duties and include the following:
1. Basic Customs Duty
All goods imported into India are chargeable to a duty under Customs Act, 1962 .The
rates of this duty, popularly known as basic customs duty, are indicated in the First
Schedule of the Customs Tariff Act, 1975 as amended from time to time
under Finance Acts. The duty may be fixed on ad -valorem basis or specific rate basis.
The duty may be a percentage of the value of the goods or at a specific rate. The
Central Government has the power to reduce or exempt any good from these duties.
2. Additional (Countervailing) Duty of Customs
This countervailing duty is livable as additional duty on goods imported into the
country and the rate structureof this duty is equal to the excise duty on like articles
produced in India. The base of this additional duty is c.i.f. value of imports plus the
duty levied earlier. If the rate of this duty is on ad-valorem basis, the value for this

purpose will be the total of the value of the imported article and the customs duty on
it (both basic and auxiliary).
3. Export Duties
Under Customs Act, 1962, goods exported from India are chargeable to export duty
The items on which export duty is chargeable and the rate at which the duty is levied
are given in the customs tariff act,1975 as amended from time to time under Finance
Acts. However, the Government has emergency powers to change the duty rates and
levy fresh export duty depending on the circumstances.
4. Auxiliary Duty of Customs
This duty is levied under the Finance Act and is leviable all goods imported into the
country at the rate of 50 per cent of their value. However this statutory rate has been
reduced in the case of certain types of goods into different slab rates based on the
basic duty chargeable on them.
5. Cesses
Cesses are leviable on some specified articles of exports like coffee, coir, lac, mica,
tobacco (unmanufactured), marine products cashew kernels, black pepper,
cardamom, iron ore, oil cakes and meals, animal feed and turmeric. These cesses
are collected as parts of Customs Duties and are then passed on to the agencies in
charge of the administration of the concerned commodities.
6. Education cess on customs duty
An education cess has been imposed on imported goods w.e.f. 9-7-2004. The cess will
be 2% and wef 01.03.2007 2%+1% of the aggregate duty of customs
excluding safeguard duty, countervailing duty,Anti Dumping Duty.
7. Protective Duties
Tariff Commission has been established under Tariff Commission Act, 1951. If the
Tariff Commission recommends and Central Government is satisfied that immediate
action is necessary to protect interests of Indian industry, protective customs duty at
the rate recommended may be imposed under section 6 of Customs Tariff Act. The
protective duty will be valid till the date prescribed in the notification.
8. Countervailing Duty on Subsidized goods
If a country pays any subsidy (directly or indirectly) to its exporters for exporting
goods to India, Central Government can impose Countervailing duty up to the amount
of such subsidy under section 9 of Customs Tariff Act.

9. Anti Dumping Duty on dumped articles

Often, large manufacturer from abroad may export goods at very low prices compared
to prices in his domestic market. Such dumping may be with intention to cripple
domestic industry or to dispose of their excess stock. This is called 'dumping'. In order
to avoid such dumping, Central Government can impose, under section 9A of Customs
Tariff Act, anti-dumping duty up to margin of dumping on such articles, if the goods
are being sold at less than its normal value. Levy of such anti-dumping duty is
permissible as per WTO agreement. Anti dumping action can be taken only when
there is an Indian industry producing 'like articles'.
10. Safeguard Duty
Central Government is empowered to impose 'safeguard duty' on specified imported
goods if Central Government is satisfied that the goods are being imported in large
quantities and under such conditions that they are causing or threatening to cause
serious injury to domestic industry. Such duty is permissible under WTO
agreement. Safeguard duty is a step in providing a need-based protection to domestic
industry for a limited period, with ultimate objective of restoring free and fair
competition
11. National Calamity Contingent Duty
A National Calamity Contingent Duty (NCCD) of customs has been imposed vide
section 129 of Finance Act, 2001. This duty is imposed on pan masala,chewing
tobacco and cigarettes. It varies from 10% to 45%. - - NCCD of customs of 1% was
imposed on PFY, motor cars, multi utility vehicles and two wheelers and NCCD of Rs
50 per ton was imposed on domestic crude oil, vide section 134 of Finance Act, 2003.
20.3.5 Rate of duty applicable There are different rates of duty for different goods
there are different rates of duty for goods imported from certain countries in terms of
bilateral or other agreement with such countries which are called preferential rate of
duties the duty may be percentage of the value of the goods or at specified rate.

Indian Custom Anti Dumping Duty

Dumping is said to occur when the goods are exported by a country to another
country at a price lower than its normal value.
This is an unfair trade practice which can have a distortive effect oninternational
trade. Anti dumping is a measure to rectify the situation arising out of the dumping of
goods and its trade distortive effect. Thus, the purpose of
anti dumping duty is to rectify the trade distortive effect of dumping and reestablish fair trade. The use of anti dumping measure as an instrument of fair
competition is permitted by
the WTO. In fact, anti dumping is an instrument for ensuring fair trade and is not a
measure of protection per se for the domestic industry. It provides relief to the
domestic industry against the injury caused by dumping.
Under the existing WTO arrangement, and in terms of various provisions under
theCustoms Tariff Act of 1975(as amended in 1995) andRules framed thereunder,
anti-dumping and allied measures constitute the legal framework, within which the
domestic industry can seek necessary relief and protection against dumping of goods
and articles by exporting companies and firms of any country from any part of the
world. These measures have assumed a great deal of relevance in India in recent
times in view of the scenario arising out of unfair trade practices adopted by some of
our trading partners, especially in the post-QR phase.
The Anti-Dumping and allied measures are complex legal disciplines which are often
not within the easy comprehension of the trade and industry who are the users of
these measures. To obviate this difficulty faced by large sections of the domestic
industry, there is a need to explain the basic concepts,
legal provisions and procedural aspects in clear and easy language for theirbenefit.
This will facilitate the domestic industry to avail of these remedial measures in the
wake of alleged dumping and of injury caused by unfair trade practices.
However, it is always necessary to bear in mind that the anti-dumping action can
never be an action based on presumption and vague complaints and only on very rare
occasions suo-moto proceedings can be initiated. The requisite parameters of law
have to be duly complied with and need to be fully supported and substantiated with
facts and figures before any action could be initiated.
Anti dumping, in common parlance, is understood as a measure of protection for
domestic industry. However, anti dumping measures do not provide protection per se
to the domestic industry. It only serves the purpose of providing remedy to the
domestic industry against the injury caused by the unfair trade practice of dumping.
In fact, anti dumping is a trade remedial measure to counteract the trade distortion
caused by dumping and the consequential injury to the domestic industry. Only in this

sense, it can be seen as a protective measure. It can never be regarded as a

protectionist measure.

Custom Rules
Customs Rules
Rule 1: Short title and commencement.
1. These rules may be called the Rules of Determination of Origin of Goods under
the Agreement on South Asian Free Trade Area (SAFTA), hereinafter referred
to as the Agreement, between the Governments of SAARC (South Asian
Association for Regional Cooperation) Member States comprising the Peoples
Republic of Bangladesh, the Kingdom of Bhutan, the Republic of India, the
Republic of Maldives, the Kingdom of Nepal, the Islamic Republic of Pakistan and
the Democratic Socialist Republic of Sri Lanka.
2. They shall come into force on the 1st day of July 2006.
Rule 2: Application These Rules shall apply to products eligible for preferential
treatment under SAFTA.
Rule 3: Determination of Origin No product shall be deemed to be the produce or
manufacture of any Contracting State unless the conditions specified in these rules
are complied with in relation to such products, to the satisfaction of the designated
Authority.
Rule 4: Originating products Products covered by the Agreement imported into the
territory of a Contracting State from another Contracting State which are consigned
directly within the meaning of Rule 12 hereof, shall be eligible for preferential
treatment if they conform to the origin requirement under any one of the following
conditions:
1. Products wholly produced or obtained in the territory of the exporting
Contracting State as defined in Rule 5; or
2. Products not wholly produced or obtained in the territory of the exporting
Contracting Stat e provided that the said products are eligible under Rule 6.
Rule 5: Wholly produced or obtained Within the meaning of Rule 4(a), the following
shall be considered as wholly produced or obtained in the territory of the exporting
Contracting State
1. raw or mineral products1 extracted from its soil, its water extending upto its
Exclusive Economic Zone (EEZ), or its sea bed extending upto its seabed or
continental shelf;
2. Agriculture, vegetable and forestry products harvested there;

3.
4.
5.
6.

animals born and raised there;

products obtained from animals referred to in clause (c) above;
products obtained by hunting or fishing conducted there,
products of sea fishing and other marine products from the high seas by its
vessels2,3;
7. products processed and/or made on board its factory ships exclusively from
products referred to in clause (f) above 3,4;
8. raw materials recovered from used articles collected there;
9. waste and scrap resulting from manufacturing operations conducted there;
10. products taken from the seabed, ocean floor or subsoil thereof beyond the limits
of national jurisdiction, provided it has the exclusive rights to exploit that sea
bed, ocean floor or subsoil thereof;
11. goods produced there exclusively from the products referred to in clauses (a) to
(j) above.
1. Includes mineral fuels, lubricants and related materials as well
as mineral or metal ores.
2. Vessels shall refer to fishing vessels engaged in commercial fishing, registered
in the country of the Contracting State and operated by a citizen or citizens of
the Contracting State or partnership, corporation or association, duly registered
in such country, at least 60 per cent of equity of which is owned by a citizen or
citizens and/or Government of such Contracting State or 75 per cent by citizens
and/or Governments of the Contracting States. However, the products taken
from vessels, engaged in commercial fishing under Bilateral Agreements which
provide for chartering/leasing of such vessels and/or sharing of catch between
Contracting State will also be eligible for preferential treatment.
3. In respect of vessels or factory ships operated by Government agencies, the
requirements of flying the flag of the Contracting State do not apply.
4. For the purpose of this Agreement, the term factory ship means any vessel, as
defined used for processing and/or making on board products exclusively from
those products referred to in clause (f) of Rule 6.
Rule 6: Not wholly produced or obtained Within the meaning of Rule 4 (b), products
not wholly produced or obtained shall be subject to Rule 7 and any of the conditions
prescribed under Rule 8, Rule 9 or Rule 10.
Rule 7: Non-qualifying Operations. The following shall in any event be considered as
insufficient working or processing to confer the status of originating products,
whether or not there is a change of heading:
1. operations to ensure the preservation of products in good condition during
transport and storage (ventilation, spreading out, drying, chilling, placing in
salt, Sulphur dioxide or other aqueous solutions, removal of damaged parts, and
like operations).
2. simple operations consisting of removal of dust, sifting or screening, sorting,
classifying, matching (including the making-up of sets of articles), washing,
painting, cutting up;

i.
ii.
3.
4.

5.
6.

changes of packing and breaking up and assembly of consignments,

simple slicing, cutting and repacking or placing in bottles, flasks, bags,
boxes, fixing on cards or boards, etc., and all other simple packing
operations.
the affixing of marks, labels or other like distinguishing signs on products of their
packaging;
simple mixing of products, whether or not of different kinds, where one or more
components of the mixture do not meet the conditions laid down in these rules
to enable them to be considered as originating products; and mere dilution with
water or another substance that does not materially alter the characteristics of
the product;
simple assembly of parts of products to constitute a complete product;
a combination of two or more operations specified in (1) to (6);

Rule 8: Single Contracting State Content

1. Products originating in the exporting Contracting State shall be considered to be
sufficiently worked or processed for the purposes of granting originating status if
they fulfill the following conditions:
1. The final product is classified in a heading at the four digit level of the
Harmonized Commodity Description and Coding System differently from
those in which all the non-originating materials5 used in its manufacture
are classified and
2. Products worked on or processed as a result of which the total value of the
materials, parts or produce originating from other countries or of
undetermined origin used does not exceed 60% of the FOB value of the
products produced or obtained and the final process of manufacture is
performed within the territory of the exporting Contracting State.
2. Notwithstanding the condition laid down in paragraph (a) of this Rule, the
products listed in Annex-A shall be eligible for preferential treatment if they
comply with Rule 8 (a) or they fulfill the condition corresponding to those
products as mentioned in the Annex-A.
Rule 9: Regional Cumulation Unless otherwise provided for, products worked on or
processed in a Contracting State using the inputs originating in any Contracting States
within the meaning of Rule 4 shall be eligible for preferential treatment provided that
1. the aggregate content (value of such inputs plus domestic value addition in
further manufacture) is not less than 50 percent of the FOB value;
2. the domestic value content (value of inputs originating in the exporting
Contracting State plus domestic value addition in further manufacture in the
exporting Contracting State), is not less than 20 percent of the FOB value; and
3. the final product satisfies the condition of change in classification at the four
digit level (CTH) as provided under Rule 8 (a) (i); or
4. Non-originating material means material originating from countries other than
Contracting States and material of undetermined origin.

5. change in classification at the six-digit level (CTSH) as agreed upon in the

Product Specific Rules reflected in Rule 8 (b).
Rule 10: Special Treatment to Least Developed Contracting States The products
originating in the Least Developed Contracting States shall be allowed a favourable 10
percentage points applied to the percentage applied in Rule 8. The products
originating in Sri Lanka shall be allowed a favourable 5 percentage points applied to
the percentage applied in Rule 8.
Rule 11: Method for Valuation of non-originating materials
1. The value of the non-originating materials, parts or produce shall be:
i.

The CIF value at the time of importation of the materials, parts or produce
where this can be proven or
ii. The earliest ascertainable price paid for the materials, parts or produce of
undetermined origin in the territory of the Contracting States where the
working or processing takes place.
2. IIn order to determine whether or not a product originated in the territory of a
Contracting State it shall not be necessary to establish whether the power and
fuel, plant and equipment, and machines and tools used to obtain such products,
originate in third countries.
Rule 12: Direct consignment
The following shall be considered as directly consigned from
the exporting Contracting State to the importing Contracting State:
1. if the products are transported without passing through the territory of any nonContracting State:
2. the products whose transport involves transit through one or more intermediate
non-Contracting States with or without transshipment or temporary storage in
such countries, provided that:
i. the transit entry is justified for geographical reason or by considerations
related exclusively to transport requirements;
ii. the products have not entered into trade or consumption there;
iii. the products have not undergone any operation there other than unloading
and reloading or any operation required to keep them in good condition;
iv. the products have remained under the customs control in the country of
transit.
Rule 13: Treatment of packing When determining the origin of products, packing
should be considered as forming a whole with the product it contains. However,
packing may be treated separately if the national legislation so requires.

Rule 14: Procedures for Issuance and Verification of Certificate of origin Detailed
Operational Certification Procedures for implementation of these Rules of Origin are
at Annex-B.
Rule 15: Prohibitions Any Contracting State may prohibit importation of products
containing any inputs originating from States with which it does not have economic
and commercial relations.
Rule 16: Consultation and Co-operation between Contracting States
1. The Contracting States will do their best to co-operate in order to specify origin
of inputs in the Certificate of origin
2. The Contracting States will take measures necessary to address, to investigate
and, where appropriate, to take legal and/or administrative
action to prevent circumvention to these Rules through false declaration
concerning country of origin or falsification of original documents.
3. The Contracting States will co-operate fully, consistent with their domestic laws
and procedures, in instances of circumvention or alleged circumvention of these
Rules to address problems arising from circumvention including facilitation of
joint plant visits, inspection and contacts by representatives of Contracting
States upon request and on a case-by-case basis.
4. If any Contracting State believes that the rules of origin are being circumvented,
it may request consultation to address the matter or matters concerned with a
view to seeking a mutually satisfactory solution. Each State will hold such
consultations promptly.
Rule 17: Review These rules may be reviewed as and when necessary upon request of
any Contracting State and may be open to such modifications as may be agreed upon
by the SAFTA Ministerial Council.

Central excise act 1944

Central Excise is a Governmental body which is run by the Central Board of Excise
and Customs. Central Government under the authority of Entry 84 of the Union List
(List 1) under Seventh Schedule read with Articles 268 to 281 of the Constitution of
India.

History of central Excise

The Central Excise duty is levied in terms of the Central Excise Act, 1944 and the
rates of duty, ad valorem (on value) or specific, are prescribed under the Schedule I
and II of the Central Excise Tariff Act, 1985.
The taxable event under the Central Excise law is manufacture / production and the
liability of Central Excise duty arises as soon as the goods are manufactured or
produced. As per the Central Excise Act, duty is liveable only on excisable goods. i.e.,
Goods specified in Central Excise Tariff Act, 1985.
The Central Excise Officers are also entrusted to collect other types of duties levied
under Additional Duties (Goods of Special Importance) Act, Additional Duties (Textiles
and Textiles Articles) Act, Cess, etc.
Till 1969, there was physical control system wherein each clearance of manufactured
from the factory was done under the supervision of the Central Excise Officers.
Introduction of Self-Removal procedure was a watershed in the excise procedures.
Now, the assesses were allowed to quantify the duty on the basis of approved
classification list and the price list and clear the goods on payment of appropriate
duty.
In 1994, the gate pass system gave way to the invoice-based system, and all
clearances are now effected on manufacturers own invoice. Another major change
was brought about in 1996, when the Self-Assessment system was introduced. This
system is continuing today also.
The assesses himself assesses his Tax Return and the Department scrutinises it or
conducts selective audit to ascertain correctness of the duty payment. Even the
classification and value of the goods have to be merely declared by the assesses
instead of obtaining approval of the same from the Department.
In 2000, the fortnightly payment of duty system was introduced for all commodities,
an extension of the monthly payment of duty system introduced the previous year for
Small Scale Industries.

In 2001, new Central Excise (No.2) Rules, 2001 have replaced the Central Excise
Rules, 1944 with effect from 1 July 2001.
Other rules have also been notified namely, CENVAT Credit Rules, 2001, Central
Excise Appeal Rules, 2001 etc. With the introduction of the new rules several changes
have been effected in the procedures. The new procedures are simplified. There are
less numbers of rules, only 32 as compared to 234 earlier. Classification declaration
and Price declarations have also been dispensed with, the CENVAT Declaration having
been earlier dispensed with in 2000 itself

Administration
The Central Excise law is administered by the Central Board of Excise and Customs
(CBEC or Board) through its field offices, the Central Excise Commissionerates. For
this purpose, the country is divided into 23 Zones and a Chief Commissioner of Central
Excise heads each Zone.
There are total 92 Commissionerates in these Zones headed by Commissioners of
Central Excise. Divisions and Ranges are the subsequent formations, headed by
Deputy/Assistant Commissioners of Central Excise and Superintendents of Central
Excise, respectively.
For enforcing the central excise law and collection of Central Excise duty the
following types of procedures are being followed by the Central Excise Department:

1. Physical Control Applicable to cigarettes only. Here assessment precedes

clearance which takes place under the supervision of Central Excise officers;

2. Self-Removal Procedure Applicable to all other goods produced or manufactured

within the country. Under this system, the assesses himself determines the duty
liability on the goods and clears the goods.

Functions and duties

The Central Board of Excise & Customs (CBEC) (Department of Revenue, Ministry of
Finance, Govt of India) is responsible for formulation of policy relating to levy and
collection of Indirect Taxes namely Customs, Central Excise and Service Tax.
The CBEC also exercises overall supervision over Customs, Central Excise and Service
Tax field formations located all over the country. The Board discharges various tasks
assigned to it, with the help of various Directorates headed by officers of the rank of
Director General (Addl Secy rank) and Addl. Director General (Jt Secy rank).
At the field level there are 34 zones headed by Chief Commissioners of Central Excise
and Customs, who are exercising supervision over the various Commissioners under
their charge.
There are 93 Central Excise Commissionerates in the country headed by
Commissioners of Central Excise. These Commissionerates are entrusted with the task
of collection of duties in notified territorial jurisdiction of the Commissionerate and
related Administrative functions. Most of the Commissionerates also deal with work
relating to Service Tax & Customs in their jurisdiction.
There are also 67 posts of Commissioners of Central Excise (Appeals) who decide
statutory appeals against the orders of officers of the rank of Addl/Jt Commrs and
Dy/Asst Commrs and 4 posts of Commissioners of Central Excise (Adjudication), who
decide large and complicated Adjudication cases wherein jurisdiction of more than
one Commissionerate is involved.

Hierarchy
Executive Officers Chief Commissioner (Zone Incharge)
Commissioner (Commissionerate Incharge)
Addl. Commissioner (Commissionerate Second Incharge)
Deputy / Asstt. Commissioner (Division Incharge)
Superintendent (Range / other formations Supervision)
Inspector / Inspector (Sector / Section Incharge)
Head Havaldar (Section Assistant)
Havaldar / Sepoy (Section Assistant)
Ministerial Officers Chief Accounts Officer
Administration Officer
Sr. Tax Assistant
Tax Assistant

Lower Divisional Clerk

Cadre Restructure
For the past 89 years Central Excise Department is facing problems regarding
promotions of Superintendent & Inspectors rank Officers. Many Officers are forced to
retire with only one promotion even after 3035 years of service. But now finally the
Finance Ministry has taken some major steps by increasing the post of Deputy
Commissioner & Assistant Commissioner (IRS) rank. With the Cadre Restructure
enforced the Superintendents of Central Excise will get guaranteed promotion to IRS
rank. The Cadre Restructure Bill also offers Indian Revenue Service(C&CE) officers to
get HAG+ & Cadre Apex Grade rank, which was earlier given only to IAS,IPS and IFS .

______________________________

Webography
www.cbec.gov.in
Wikipedia.com

cestat.gov.in