CENTRAL EXCISE TARIFF ACT, 1985

Preamble

The Central Excise Tariff Act 1985

[Act, No. 5 of 1986]

[19th January, 1986]

PREAMBLE

An Act to provide for tariff for Central Duties of Excise.

BE it enacted by Parliament in the Thirty-sixth Year of the Republic of India as follows: -

Section 1. Short title extent and commencement

(1) This Act may be called the Central Excise Tariff Act, 1985.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Section 2. Duties specified in the First Schedule and the Second Schedule to be levied

The rates at which duties of excise shall be levied under the Central Excise Act, 1944 (1 of 1944) are specified in the First Schedule and the Second Schedule.

Section 3. Emergency power of Central Government to increase duty of excise

(1) Where, in respect of any goods, the Central Government is satisfied that the duty leviable thereon under section 3 of the Central Excise Act, 1944 (1 of 1944) should be increased and that circumstances exist which render it necessary to take immediate action, the Central Government may, by notification in the Official Gazette, direct an amendment of the First Schedule and the Second Schedule to be made so as to substitute for the rate of duty specified in the First Schedule and the Second Schedule in respect of such goods,

(a) in a case where the rate of duty as specified in the First Schedule and the Second Schedule as in force immediately before the issue of such notification is nil, a rate of duty not exceeding fifty per cent ad valorem expressed in any form or method;

(b) in any other case, a rate of duty which shall not be more than twice the rate of duty specified in respect of such goods in the First Schedule and the Second Schedule as in force immediately before the issue of the said notification:

Provided that the Central Government shall not issue any notification under this sub-section for substituting the rate of duty in respect of any goods as specified by an earlier notification issued under this sub-section by that Government before such earlier notification has been approved with or without modifications under sub-section (2).

Explanation. "Form or method", in relation to a rate of duty of excise, means the basis, namely, valuation, weight, number, length, area, volume or other measure with reference to which the duty may be levied.

(2) Every notification under sub-section (1) shall be laid before each House of Parliament, if it is sitting, as soon as may be after the issue of the notification, and, if it is not sitting, within seven days of its re-assembly, and the Central Government shall seek the approval of Parliament to the notification by a resolution moved within a period of fifteen days beginning with the day on which the notification is so laid before the House of the People and if Parliament makes any modification in the notification or directs that the notification should cease to have effect, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be, but without prejudice to the validity of anything previously done there under.

(3) For the removal of doubts, it is hereby declared that any notification issued under sub-section (1), including any such notification approved or modified under sub-section (2), may be rescinded by the Central Government at any time by notification in the Official Gazette.

Section 4. Consequential amendments of and construction of references

4. Consequential amendments of and construction of references.

Consequential amendments of, and construction of references to the First Schedule to Act 1 of 1944. In the Central Excise Act, 1944,

(a) for the words "First Schedule", wherever they occur, the words and figures "Schedule to the Central Excise Tariff Act, 1985" shall be substituted;

(b) in section 2, for clause (f), the following clause shall be substituted; namely :-

'(f) "manufacture" includes any process,-

(i) incidental or ancillary to the completion of a manufactured product; and

(ii) which is specified in relation to any goods in the Section or Chapter Notes of the Schedule to the Central Excise Tariff Act, 1985 as amounting to manufacture,

and the word "manufacturer" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account;'

(c) the First Schedule shall be omitted.

(2) Any reference to the expression "First Schedule to the Central Excise Act, 1944 (1 of 1944)" in any Central Act shall, on and after the commencement of this Act, be construed as a reference to the Schedule to this Act.

Section 5. Power of Central Government to amend First and Second Schedules

5. 1 Powerof Central Government to amend First and Second Schedules

(1)Wherethe Central Government is satisfied that it is necessary so to do in the publicinterest, it may, by notification in the Official Gazette, amend the FirstSchedule and the Second Schedule:

Providedthat such amendment shall not alter or affect in any manner the rates specifiedin the First Schedule and the Second Schedule in respect of goods at whichduties of excise shall be leviable on the goods under the Central Excise Act,1944 (1 of 1944).

(2)Every notification issued under sub-section (1) shall be laid, as soon as may beafter it is issued, before each House of Parliament, while it is in session, fora total period of thirty days which may be comprised in one session or in two ormore successive sessions, and if, before the expiry of the session immediatelyfollowing the session or the successive sessions aforesaid, both Houses agree inmaking any modification in the notification or both Houses agree that thenotification should not be issued, the notification shall thereafter have effectonly in such modified form or be of no effect, as the case may be; so, however,that any such modification or annulment shall be without prejudice to thevalidity of anything previously done under that notification.

1.Insertedvide The Central Excise Tariff (Amendment) Act, 2004.

Schedules

First Schedule

FIRST SCHEDULE

General of this Schedule Rules for the Interpretation

SECTION I

LIVE ANIMALS; ANIMAL PRODUCTS

Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5

SECTION II

VEGETABLE PRODUCTS

Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14

SECTION III

ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS; PREPARED EDIBLE FATS; ANIMAL OR VEGETABLE WAXES

Chapter 15

SECTION IV

PREPARED FOODSTUFFS; BEVERAGES, SPIRITS AND VINEGAR; TOBACCO AND MANUFACT0URED TOBACCO SUBSTITUTES

Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24

SECTION V

MINERAL PRODUCTS

Chapter 25 Chapter 26 Chapter 27

SECTION VI

PRODUCTS OF THE CHEMICAL OR ALLIED INDUSTRIES

Chapter 28 Chapter 29 Chapter 30 Chapter 31 Chapter 32 Chapter 33 Chapter 34 Chapter 35 Chapter 36 Chapter 37 Chapter 38

SECTION VII

PLASTICS AND ARTICLES THEREOF; RUBBER AND ARTICLES THEREOF

Chapter 39 Chapter 40

SECTION VIII

RAW HIDES AND SKINS, LEATHER, FURSKINS AND ARTICLES THEREOF, SADDLERY AND HARNESS; TRAVEL GOODS, HANDBAGS AND SIMILAR CONTAINERS; ARTICLES OF ANIMAL GUT (OTHER THAN SILK-WORM GUT)

Chapter 41 Chapter 42 Chapter 43

SECTION IX

WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL: CORK AND ARTICLES OF CORK; MANUFACTURES OF STRAW, OF ESPATRO OR OF OTHE0R PLAITING MATERIALS; BASKETWARE AND WICKERWORK

Chapter 44 Chapter 45 Chapter 46

SECTION X

PULP OF WOOD OR OF OTHER FIBROUS CELLULOSIC MATERIAL; RECOVERED (WASTE AND SCRAP) PAPER OR PAPERBOARD; PAPER AND PAPERBOARD AND ARTICLES THEREOF

Chapter 47 Chapter 48 Chapter 49

SECTION XI

TEXTILES AND TEXTILES ARTICLES

Chapter 50 Chapter 51 Chapter 52 Chapter 53 Chapter 54 Chapter 55 Chapter 56 Chapter 57 Chapter 58 Chapter 59 Chapter 60 Chapter 61 Chapter 62 Chapter 63

SECTION XII

FOOTWEAR; HEADGEAR, UMBRELLAS, SUN UMBRELLAS, WALKIN-STICKS, SEAT-STICKS, WHIPS, RIDING-CROPS AND PARTS THEREOF, PREPARED FEATHERS AND ARTICLES MADE THEREWITH; ARTIFICIAL FLOWERS; ARTICLES OF HUMAN HAIR

Chapter 64 Chapter 65 Chapter 66 Chapter 67

SECTION XIII

ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR MATERIALS; CERAMIC PRODUCTS; GLASS AND GLASSWARE

Chapter 68 Chapter 69 Chapter 70

SECTION XIV

NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES, PRECIOUS METALS, METALS CLAD WITH PRECIOUS METAL, AND ARTICLES THEREOF, IMITATION JEWELLERY; COIN

Chapter 71

SECTION XV

BASE METALS AND ARTICLES OF BASE METAL

Chapter 72 Chapter 73 Chapter 74 Chapter 75 Chapter 76 Chapter 77 Chapter 78 Chapter 79 Chapter 80 Chapter 81 Chapter 82 Chapter 83

SECTION XVI

MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENTS; PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH ARTICLES

Chapter 84 Chapter 85

SECTION XVII

VEHICLES, AIRCRAFT, VESSELS AND ASSOCIATED TRANSPORT EQUIPMENT

Chapter 86 Chapter 87 Chapter 88 Chapter 89

SECTION XVIII

OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CHECKING, PRECISION, MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS; CLOCKS AND WATCHES; MUSICAL INSTRUMENTS; PARTS AND ACCESSORIES THERETO

Chapter 90 Chapter 91 Chapter 92

SECTION XIX

ARMS AND AMMUNITION; PARTS AND ACCESSORIES THEREOF Chapter 93

SECTION XX

MISCELLANEOUS MANUFACTURED ARTICLES Chapter 94 Chapter 95 Chapter 96

SECTION XXI

Chapter 97 Chapter 98

Section I. Live Animals; Animal Products

SECTION I

LIVE ANIMALS; ANIMAL PRODUCTS

NOTES

1. Any reference in this Section to a particular genus or species of an animal, except where the context otherwise requires, includes a reference to the young of that genus or species.

2. Except where the context otherwise requires, throughout this Schedule, any reference to dried products also covers products which have been dehydrated, evaporated or freeze-dried.

Chapter 1
Live Animals

Chapter 2
Meat and Edible Meat Offal

Chapter 3
Fish and Crustaceans, Molluscs and Other Aquatic Invertebrates

Chapter 4
Dairy Produce; Birds Eggs; Natural Honey; Edible Products of Animal Origin, Not Elsewhere Specified Or Included

1. Substituted for the words "i.e." by the seventh schedule of Finance Act, 2006, w.e.f. 01.01.2007. 2. Substituted for the words "Blue-veined cheese " by the seventh schedule of Finance Act, 2006, w.e.f. 01.01.2007. 3. Substituted by Notification No : .11/2008 dated 01.03.08 for the words labelling or relabelling of containers and repacking.

Chapter 5
Products of Animal Origin, Not Elsewhere Specified Or Included

Section II. Vegetable Products

SECTION II

VEGETABLE PRODUCTS

NOTES

1. In this Section, the term pellets means products which have been agglomerated either directly by compression or by the addition of a binder in a proportion not exceeding 3 per cent. by weight.

2. In this Section the expression, unit container means a container, whether large or small (for example, tin, can, box, jar, bottle, bag or carton, drum, barrel or canister) designed to hold a predetermined quantity or number.