Excise Duty is a Tax Levied on the
Production of Goods
Excise duty charge is applicable on those products which is been produced in India. There are three different type of central excise duties which exist in India.
Basic– Excise duty, imposed under section 3 of the ‘Central Excise and salt Act’ of 1944 on all excisable goods other than salt produced or manufactured in India.
Special- As per the section 37 of the Finance Act, 1978 Special excise Duty was attracted on all escisable goods on which there is a leavy of Basic excise Duty the Central Excise and Salt Act, 1944. Therefore, each year the Finance Act spells out that whether the Special Excise Duty shall or shall not be charged not be charged, and eventually collected during the relevant financial year.
Additional- Section 3 of the ‘Additional Duties of Excise Act’ of 1957 permits the charge and collection of excise duty in respect of the goods as listed in the schedule of this act. This tax is shared between the central and state government and charged instead of sales tax.