Central Excise is a levy (tax), levied on a commodity (manufactured within the country) by the Union Government by an Act of Parliament (usually in the Finance Bill, in the presentation of the Budget in the Parliament, generally on the last working day of February every year) by notifying under a Tariff.
It is an indirect tax paid by the manufacturer, who passes its incidence to the customers.
“Excise Duty” is levied the moment the process of manufacture is complete.
Objectives of Central Excise Act, 1944
1. To collect excise duty on manufactured goods more conveniently
2. To reduce collection costs
3. To control wasteful expenditures
4. To avoid tax evasion by appropriate control measures
5. To promote industrial growth in backward areas
6. To support local industries
7. To collect high revenues