Central Excise Day is observed on 24th February every year to commemorate the Central Excise and Salt Act, which was enacted on 24th February 1944. This day is celebrated to promote equity amongst the Central Board of Excise and Customs Department officers and aid them in greater tax compliance.
This article will provide information about Central Excise Day in the context of the IAS Exam.
- Every year, on 24th February, the Central Excise and Salt Act is commemorated called Central Excise Day.
- Furthermore, the 14th Finance Commission advocated an extraordinary increase in the States’ share of Central taxes of 10% from 32% to 42%, which is a shift in the direction of “cooperative federalism.”
- The Central Excise Department has a major impact on the country’s economic and national development.
- The British first established Central Excise in India in 1855, one of the country’s oldest agencies.
- Before 1996, “The Central Excise & Salt Act, 1944” was known as “The Central Excise Act 1944.”
- The Latin word “Excise” means “to cut” and refers to the “Inland Tax,” which is what the name refers to.
- Originally, Excise Duty was levied on 67 items, but that number has risen to thousands now.
- Today, the Central Excise Department operates tax collection and law enforcement activities across India through 23 zones, 100 commissionerates, 460 divisions and 2614 zones (ranges).
- The Union Government granted “Power to Arrest” to Central Excise Officers in 1973, but only in 2013 did it extend to Service Tax Officers.
- As the “Best Anti-Smuggling Agency of India,” the Central Excise Department has beaten other government agencies like the BSF, ED and the NCB to the title on most occasions.
- When founded in 1979, the Directorate General of Anti Evasion (DGAE) was renamed the Directorate General of Central Excise Intelligence or DGCEI. Despite its small size, the DGCEI is able to uncover more Revenue Evasions cases than more extensively staffed organisations like the ED and ITI.
- Customs, Excise & Tobacco Department” was the name given to the Central Excise Department before it was renamed in early 1954. It was renamed “Indian Customs and Central Excise Department” in 1954, and the production tax on alcoholic beverages was passed to the state governments after that year’s Union Budget.
- To further India’s financial development, the Central Excise Department has emerged as a key source of budgetary progress.
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Significance of Central Excise Day
- As a government agency, it is the job of the Central Excise Board to oversee customs, central excise, service tax, and narcotics regulations.
- The primary goal of this day is to raise awareness about the value of excise and service tax in the minds of the general public.
- Taxes paid on items made in India for domestic consumption are known as “excise duty.”
- The tax is imposed on manufacturing, and central excise is due as soon as the items are made.
- Manufacturers pay this tax, which is then passed on to consumers as an increased cost of doing business.
Central Board of Excise and Customs (CBEC)
- The Department of Revenue, under the Ministry of Finance, houses the Central Board of Excise and Customs (CBEC).
- The imposition and collection of Central excise and Customs charges are the responsibility of this agency.
- Smuggling prevention and customs, central excise, and narcotics-related cases are also handled by CBEC’s smuggling prevention unit.
- Amongst the board’s subordinate entities are Custom Houses, the Central Excise Commissionerate, and the Central Revenue Control Lab.
- At the helm of the CBEC is the chairman, who also serves as the government of India’s ex-officio special secretary.
- Five ex-officio Additional Secretaries of the Government of India serve as CBEC members.
- The Indian Revenue Agency (IRS), India’s principal civil service, selects the chairman and members of the Central Board of Economic Co-operation (CBEC).
- The Central Excise and Customs Department’s top management consists of these persons. From the IRS and other important civil service organisations, CBEC members are selected and supported by various associated offices.
- Central Excise Day is a significant part of the Indian Excise and Custom services. This day is celebrated in India on 24th February every year.
- The board that organises this day is a government agency responsible for administering matters related to service taxes, narcotics, central excise, and customs.
- This day aims to honour the Central Board of Excise and Custom for their contribution to the State’s economy.
- This day also recognises the hard work and achievements of the organisation’s employees.
- Central Excise day is celebrated across the country with seminars, educational events, cultural events workshops, and even awareness programmes and competitions and award ceremonies.
- These awards aim to commend the people for their service to the government and the nation.
Frequently Asked Questions about Central Excise Day
Who is the chairman of the Central Board of Excise and Customs?
The Chairman of the Central Board of Indirect Taxes and Customs is Vivek Johri, IRS (C&CE:85).
What does Central Excise law entail?
The Central Excise Act of 1944 was enacted to allow the Central Government to consolidate and change legislation on the Central Duties of Excise on all goods and products manufactured throughout India.
How do Customs and Excise differ?
The primary difference between customs duty and excise duty is that excise taxes are imposed on domestically produced items, whereas custom taxes are charged on foreign-imported products.
Is GST inclusive of Central Excise Duty?
India’s Central Government collects excise duty on businesses that manufacture, sell, or licence certain commodities. State governments also collect excise taxes on alcoholic beverages and narcotics. The Goods and Services Tax (GST) has taken the place of excise duties as of 1st July 2017.
What is Central Excise Duty Rebate?
In accordance with Rule 12, exporters of products may claim a Central Excise Duty rebate on duties paid on excisable items and materials used in the production of goods.
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