Differences in Excise By CA Vishal Bhattad

DIRECT TAXES V/s INDIRECT TAXES
1) It is levied on income earned activities conducted.
1) It is levied on product or services
2) It is paid, directly by person concerned
2) It is paid by one person but he recover the same from another person i.e. person who actually bear the tax is ultimate consumer.
3) It is paid after the income reaches in the hands of tax payer
3) It is paid before goods/service reaches taxpayer
4) Tax collection is difficult.
4) Tax collection is relatively easier
5) e.g. Income tax, wealth tax etc
5) e.g. excise duty, custom duty, sale tax, service tax etc.


EXCISABLE GOODS V/s DUTIABLE GOODS
(1) Excisable goods are those goods which are mentioned in schedule to CETA,1985
(1) Dutiable goods are those goods which are subject to duty as per the tariff but still duty not paid.
(2) All Excisable goods need not be dutiable goods.
(2) All dutiable goods are Excisable goods.
(3) No provision of Central Excise Act and rules there under is applicable if goods in Non Excisable.
(3) All provision of Central Excise Act and rules there under is applicable if goods in Non Dutiable goods.


EXEMPTED GOODS V/s NIL RATE GOODS
(1) Rate of duty specified in CETA but wholly or partly exempted by notification.
(1) Rate of duty is specified in CETA is itself at Nil rates.
(2) Exemption may be conditional or absolute.
(2) No such thing for nil rate goods.
(3) Central Government can make such goods dutiable by withdrawing exemption at any time.
(3) Only Parliament can imposed a rate on such goods and make dutiable by an amendment in CETA.



GOODS V/s EXCISABLE GOODS
(1) It must satisfy the condition of Movability and Marketabity.
(1) Along with the condition of Movability and Marketabity it must be specified in schedule to CETA.
(2) It is not defined under Central Excise Act.
(2) It is defined under Sec U/s 2(d) of Central Excise Act.
(3) All goods need not be Excisable goods.
(3) All Excisable goods are goods.


LEVY V/s COLLECTION
(1) Levy is statutory right.
(1) Collection is governed by Central Govt. by making rules.
(2) Levy is under Sec 3 of Central Excise Act.
(2) Collection is as per rules made under Central Excise Rule 2002.
(3) Levy is on manufacture or production
(3)Collection is postponed till the date of removal.
(4) Levy means imposition and assessment of duty.
(4) Collection means actual collection of duty.



SPECIFIC DUTY V/s ADVALOREM DUTY
(1) It is levied on the basis of some specific measurements such as weight, length, volume or no. of units and etc.
(1) It is levied on the basis of value (may be Tariff value or Transaction value).
(2) Value is not relevant for calculation of this duty.
(2) Value is relevant for calculation of this duty.
(3) It is given in terms of specific rate on the basis of some measurement. Eg. Rs 100 per Kg.
(3) It is given in terms of Percentage on value.Eg.15%


SEC 14A(VALUATION AUDIT) V/s SEC14AA(CENVAT AUDIT)
(1) It is Special Audit in relation to Valuation of Goods
(1) It is Special Audit in relation to Availment and utilization of Cenvat credit.
(2) It is conducted when value of excisable goods has not been correctly declared or determined by manufacturer.
(2) It is conducted when availed or utilize by manufacturer
(a) is not within the normal limits having regard to the nature of the excisable goods produced or manufactured, the type of inputs used and other relevant factors, as he may deem appropriate;
(b) has been availed of or utilised by reason of fraud, collusion or any wilful mis-statement or suppression of facts,
(3) Special Audit Under this section ordered by AC or DC
(3) Special Audit Under this section ordered Commissioner of Central Excise.
(4) Previous approval of the Chief Commissioner of Central Excise is required.
(4) No such approval is required.
(5) The Cost Accountant is nominated by Chief Commissioner of Central Excise.
(5) The Cost Accountant is nominated by Commissioner of Central Excise.
(6) The Cost Accountant shall submit the report within maximum period of 180 days.
(6) The Cost Accountant shall submit the report within the time as specified by Commissioner of Central Excise