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.
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.
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.
Conditions to be satisfied to be excisable goods (In a Nutshell):
- They must be goods.
- They must be mentioned in First and Second Schedule to CETA.
- Rate of Duty must be specified on it.