Duties under Central Excise Act, 1944 :

Excise duties are of the following types –

(a ) Basic Excise Duty : This duty is levied under section 3(1)(a) of Central Excise Act. With effect from 12.5.2000. Basic excise duty is termed as CENVAT when a person is able to take input credit of BED, else it is referred to as BED. This duty is levied at the rates specified in First Schedule to Central Excise Tariff Act, read with exemption notification, if any .  Excisable goods produced or manufactured in SEZ are not liable to BED.

(b ) Special Excise Duty: This duty is levied under section 3(1)(b) of Central Excise Act. Special duty of excise is leviable on some commodities like pan masala ,cars etc.. These items are covered in second schedule to Central excise tariff. However with effect from 1.3.2006, all goods have been exempted from special excise duty

(c ) Duty in case of 100% EOU and units in FTZ: Hundred percent EOU’s and FTZ units export all their production but when they clear their final products in DTA ,excise duty has to be paid at the rate of customs duty i.e. The excise duty amount is equal to the aggregate of the duties of customs leviable on like article if imported in India.