The Central Excise Act, 1944 section 3: Duty specified in the Fourth Schedule to…

In force · As amended up to 2026-08

CHAPTER II LEVY AND COLLECTION OF DUTY 3. Duty specified in the Fourth Schedule to be levied. - 3A. Power of Central Government to charge excise duty on the basis of capacity of production in respect of notified goods. - 3B. Emergency power of Central Government to increase duty of excise. - 3C. Power of Central Government to amend Fourth Schedule. CHAPTER II LEVY AND COLLECTION OF DUTY 1[ 3. Duty specified in the Fourth Schedule to be levied .— (1) There shall be levied and collected in such manner as may be prescribed a duty of excise to be called the Central Value Added Tax (CENVAT) on all excisable goods (excluding goods produced or manufactured in special economic zones) which are produced or manufactured in India as, and at the rates, set forth in the Fourth Schedule: Provided that the duty of excise which shall be levied and collected on any excisable goods which are produced or manufactured by a hundred per cent export oriented undertaking and brought to any other place in India, shall be an amount equal to the aggregate of the duties of customs which would be leviable under the Customs Act, 1962 (52 of 1962) or any other law for the time being in force, on like goods produced or manufactured outside India if imported into India, and where the said duties of customs are chargeable by reference to their value, the value of such excisable goods shall, notwithstanding anything contained in any other provision of this Act, be determined in accordance with the provisions of the Customs Act, 1962 and the Customs Tariff Act, 1975 (51 of 1975). 3. In this Chapter, "Pan masala containing tobacco", commonly known as "gutkha" or by any other name, included in Tariff Item 2403 99 90, means any preparation containing betelnuts and tobacco and any one or more of the following ingredients, namely— (i) lime; and (ii) kattha (catechu), whether or not containing any other ingredients, such as cardamom, copra and menthol. SUB-HEADING NOTE For the purposes of sub-heading 2403 11, the expression "water pipe tobacco" means tobacco intended for smoking in a water pipe and which consists of a mixture of tobacco and glycerol, whether or not containing aromatic oils and extracts, molasses or sugar, and whether or not flavoured with fruit. However, tobacco-free products intended for smoking in a water pipe are excluded from this sub-heading. SUPPLEMENTRY NOTES For the purposes of this Chapter: (1) "tobacco" means any form of tobacco, whether cured or uncured and whether manufactured or not, and includes the leaf, stalks and stems of the tobacco plant, but does not include any part of a tobacco plant while still attached to the earth. (2) "cut-tobacco" means the prepared or processed cut-to-size tobacco which is generally blended or moisturised to a desired extent for use in the manufacture of machine rolled cigarettes. (3) "smoking mixtures for pipes and cigarettes" of sub-heading 2403 10 does not cover " Gudaku". 3. In relation to natural gas falling under Heading 2711, the process of compression of natural gas (even if it does not involve liquefaction), for the purpose of marketing it as Compressed Natural Gas (CNG), for use as a fuel or for any other purpose, shall amount to "manufacture". Sub-Heading Note For the purposes of sub-heading 2710 12, "light oils and preparations" are those of which 90% or more by volume (including losses) distil at 210°C (ASTM D 86 method). Supplementary Notes In this Chapter, the following expressions have the meanings hereby assigned to them— (1) "motor spirit" means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 25°C and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. "Special boiling point spirits (Tariff Items 2710 12 11, 2710 12 12 and 2710 12 13)" means light oils, as defined in sub-heading Note 4, not containing any anti-knock preparations, and with a difference of not more than 60°C between the temperatures at which 5% and 90% by volume (including losses) distil; (2) "natural gasoline liquid (NGL)" is a low-boiling liquid petroleum product extracted from Natural Gas; (3) "aviation turbine fuel (ATF)" means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS : 1571 : 1992 : 2000; Explanation 1 .— Where in respect of any such like goods, any duty of customs leviable for the time being in force is leviable at different rates, then, such duty shall, for the purposes of this proviso, be deemed to be leviable at the highest of those rates. Explanation 2 .— For the purposes of this sub-section,— (i) "hundred per cent export-oriented undertaking" means an undertaking which has been approved as a hundred per cent export-oriented undertaking by the board appointed in this behalf by the Central Government in exercise of the powers conferred by Section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act; (ii) "Special Economic Zone" shall have the meaning assigned to it in clause (za) of Section 2 of the Special Economic Zones Act, 2005 (28 of 2005). (2) The provisions of sub-section (1) shall apply in respect of all excisable goods which are produced or manufactured in India by or on behalf of the Government, as they apply in respect of goods which are not produced or manufactured by the Government. (3) The Central Government may, by notification in the Official Gazette, fix, for the purposes of levying the said duty, tariff values of any articles enumerated, either specifically or under general headings, in the Fourth Schedule as chargeable with duty ad valorem and may alter any tariff values for the time being in force. 3. Section "12A" renumbered as "12E" by Act 40 of 1991, s. 7 (w.e.f. 20-9-1991). 4. Subs. by Act 25 of 2014, s. 95, for "Commissioner of Central Excise". 5. Ins. by Act 8 of 2011, s. 68. authorise in writing any Central Excise Officer to search and seize or may himself search and seize such documents or books or things. 1[(2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search and seizure shall, so far as may be, apply to search and seizure under this section subject to the modification that sub-section (5) of Section 165 of the said Code shall have effect as if for the word "Magistrate", wherever it occurs, the words "[2] [Principal Commissioner of Central Excise or Commissioner of Central Excise]" were substituted.]] |Tariff item|Description of goods|Description of goods|Unit| Rate of Duty| |---|---|---|---|---| |(1)|(2)||(3)|(4)| |2401|Unmanufactured Tobacco; Tobacco Refuse|||| |2401 10|-|Tobacco, not stemmed or stripped:||| |2401 10 10| - - -| Flue cured virginia tobacco|Kg.|64%| |Tariff item|Description of goods|Description of goods|Unit| Rate of Duty| |---|---|---|---|---| |(1)|(2)||(3)|(4)| |2401 10 20| - - -| Sun cured country (natu) tobacco|Kg.|64%| |2401 10 30| - - -| Sun cured virginia tobacco|Kg.|64%| |2401 10 40| - - -| Burley tobacco|Kg.|64%| |2401 10 50| - - -| Tobacco for manufacture of biris, not stemmed|Kg.|64%| |2401 10 60| - - -| Tobacco for manufacture of chewing tobacco|Kg.|64%| |2401 10 70| - - -| Tobacco for manufacture of cigar and cheroot|Kg.|64%| |2401 10 80| - - -| Tobacco for manufacture of hookah tobacco|Kg.|64%| |2401 10 90| - - -| Other|Kg.|64%| |2401 20|-|Tobacco, partly or wholly stemmed or stripped:||| |2401 20 10| - - -| Flue cured virginia tobacco|Kg.|64%| |2401 20 20| - - -| Sun cured country (natu) tobacco|Kg.|64%| (4) "high speed diesel (HSD)" means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS : 1460 : 2000; (5) for the purposes of these additional notes, the tests prescribed have the meaning hereby assigned to them— (a) "Flash Point" shall be determined in accordance with the test prescribed in this behalf in the rules made under the Petroleum Act, 1934 (30 of 1934); (b) "Smoke Point" shall be determined in the apparatus known as the Smoke Point Lamp in the manner indicated in the Indian Standards Institution Specification IS : 1448 (p. 31)-1967 for the time being in force; (c) "Final Boiling Point" shall be determined in the manner indicated in the Indian Standards Institution Specification IS : 1448 (p. 18)-1967 for the time being in force; (d) "Carbon Residue" shall be determined in the apparatus known as Ramsbottom Carbon Residue Apparatus in the manner indicated in the Indian Standards Institution Specification IS : 1448 (p. 8)-1967 for the time being in force; (e) "Colour Comparison Test" shall be done in the following manner, namely— (i) first prepare a five per cent weight by volume solution of Potassium Iodine (analytical reagent quality) in distilled water; (ii) to this, add Iodine (analytical reagent quality) in requisite amount to prepare an exactly 0.04 normal Iodine solution; 1. Subs. by Act 18 of 2017, s. 6, for section 3. - (4) The Central Government may fix different tariff values— - (a) for different classes or descriptions of the same excisable goods; or - (b) for excisable goods of the same class or description— - (i) produced or manufactured by different classes of producers or manufacturers; or - (ii) sold to different classes of buyers: Provided that in fixing different tariff values in respect of excisable goods falling under sub-clause (i) or sub-clause (ii), regard shall be had to the sale prices charged by the different classes of producers or manufacturers or, as the case may be, the normal practice of the wholesale trade in such goods.] 3. The word "for grant of stay or" omitted by Act 25 of 2014, s. 102(c). Provided that no such fee shall be payable in the case of an application filed by or on behalf of the[[1]] [Principal Commissioner of Central Excise or Commissioner of Central Excise] under this sub-section.] the[[1]] [Principal Commissioner of Central Excise or Commissioner of Central Excise] under this |Tariff item|Description of goods|Description of goods|Unit| Rate of Duty| |---|---|---|---|---| |(1)|(2)||(3)|(4)| |2401 20 30| - - -| Sun cured virginia tobacco|Kg.|64%| |2401 20 40| - - -| Burley tobacco|Kg.|64%| |2401 20 50| - - -| Tobacco for manufacture of biris|Kg.|64%| |2401 20 60| - - -| Tobacco for manufacture of chewing tobacco|Kg.|64%| |2401 20 70| - - -| Tobacco for manufacture of cigar and cheroot|Kg.|64%| |2401 20 80| - - -| Tobacco for manufacture of hookah tobacco|Kg.|64%| |2401 20 90| - - -| Other|Kg.|64%| |2401 30 00| -|Tobacco refuse|Kg.|50%| |2402||Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes||| |2402 10|-|Cigars, cheroots and cigarillos, containing tobacco:||| |2402 10 10| - - -| Cigar and cheroots|Tu|12.5% or| |||||Rs 4006 per thousand,| (iii) thereafter, compare the colour of the mineral oil under test with the Iodine solution so prepared. |Tariff Item|Description of goods|Description of goods|Unit|Rate of Duty| |---|---|---|---|---| |(1)|(2)||(3)|(4)| |2709|Petroleum oils and oils obtained from bituminous minerals, crude.||Kg.| …..| |2709 10 00|-|Petroleum oils and oils obtained from bituminous minerals|Kg.| …..| |2709 20 00|-|Petroleum crude||Nil| |2710||Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils| || ||-|Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than those containing biodiesel and other than waste oil| || |2710 12|- -|Light oils and preparations:||| ||- - -|Motor spirit (Commonly known as petrol):||| |2710 12 11|- - - -|Special boiling point spirits (other than benzene, toluol) with nominal boiling point range 55-115 °C| Kg.|14%+Rs 15.00 per litre| |2710 12 12|- - - -|Special boiling point spirits (other than benzene, toluene and toluol) with nominal boiling point range 63-70 °C| Kg.|14%+Rs 15.00 per litre| |2710 12 13|- - - -|Other Special boiling points spirits (other than benzene, benzol, toluene and toluol)| Kg.|14%+Rs 15.00 per litre| 3. Chapter heading ins. by Act 44 of 1980, s. 5 (w.e.f. 11-10-1982). 4. Ins. by Act 36 of 1973, s. 23. in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; (b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence.] |Tariff Item|Description of goods|Description of goods|Unit|Rate of Duty| |---|---|---|---|---| |(1)|(2)||(3)|(4)| |2710 12 19|- - - -|Other|Kg.|14%+Rs 15.00 per litre| |2710 12 20|- - -|Natural Gasoline Liquid|Kg.|14%+Rs 15.00 per litre| |1[2710 12 39|- - -|Solvent 145/205|Kg.| …| ||- - -|Motor Gasoline conforming to standard IS 2796, IS 17021, IS 17586 or IS 17076:||| |2710 12 41|- - -|Motor Gasoline conforming to standard IS 2796|Kg.|14%+Rs 15.00 per litre| |2710 12 42|- - -|E 20 Fuel conforming to standard IS 17021|Kg.|14%+Rs 15.00 per litre| |2710 12 43|- - -|E 12 Fuel conforming to standard IS 17586|Kg.|14%+Rs 15.00 per litre| |2710 12 44|- - -|E 15 Fuel conforming to standard IS 17586|Kg.|14%+Rs 15.00 per litre| |2710 12 49|- - -|M 15 Fuel conforming to standard IS 17076|Kg.|14%+Rs 15.00 per litre]| |2710 12 90|- - -|Other|Kg.|14%+Rs 15.00 per litre| 1. Subs. by Act 6 of 2022, S. 99 and Sch. IV (w.e.f. 1-5-2022). 3. When by application of clause (b) of Rule 2 or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows— (a) the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods; (b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to clause (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable; 1. Ins. by Act 18 of 2017, s. 12 and Schedule II. (c) when goods cannot be classified by reference to clause (a) or clause (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. |Tariff Item|Description of goods|Description of goods|Unit|Rate of Duty| |---|---|---|---|---| |(1)|(2)||(3)|(4)| |2710 19|- -|Other:||| |2710 19 10|- - -|Superior Kerosene Oil (SKO)|Kg.| …..| |2710 19 20|- - -|Aviation Turbine Fuel (ATF)|Kg.| 14%| |2710 19 30|- - -|High Speed Diesel (HSD)|Kg.|14%+Rs 15.00 per litre| |2710 19 40|- - -|Light Diesel Oil (LDO)|Kg.| …..| |2710 19 50|- - -|Fuel oil|Kg.| …..| |2710 19 60|- - -|Base oil|Kg.| …..| |2710 19 70|- - -|Jute batching oil and textile oil|Kg.| …..| |2710 19 80|- - -|Lubricating oil|Kg.| …..| |2710 19 90|- - -|Other|Kg.| …..| ||-|Waste oil:||…..| |2710 20 00||Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70%| Kg.| …..| |Tariff Item|Description of goods|Description of goods|Unit|Rate of Duty| |---|---|---|---|---| |(1)|(2)||(3)|(4)| |||or more of petroleum oils or of oil obtained from bituminous minerals, these oils being the basic constituents of the preparations, containing biodiesel, other than waste oils| || |2710 91 00|- -|Containing polychlorinated biphenyls (PCBs), polychlorinated terphenyls (PCTs) or polybrominated biphenyls (PBBs)| Kg.| …..| |2710 99 00|- -|Other|Kg.| …..| |2711||Petroleum gases and other gaseous hydrocarbons||| ||-|Liquefied:||| |2711 11 00|- -|Natural gas|Kg.| 14%| |2711 12 00|- -|Propane|Kg.| …..| |2711 13 00|- -|Butane|Kg.| …..| |2711 14 00|- -|Ethylene, propylene, butylene and butadiene|Kg.| …..| |2711 19 00|- -|Other|Kg.| …..| ||-|In gaseous state:||| |2711 21 00|- -|Natural gas|Kg.| 14%| |2711 29 00|- -|Other|Kg.| …..]|

Source: India Code