Central Excise Bill may be Introduced in Budget Session

         Align excise law with the GST and customs framework to ensure a more cohesive indirect tax system and incorporate the CENVAT credit provisions previously governed by a separate delegated legislation.

         Introduce the concept of 'related persons' from customs and GST Laws.

         The limitation for department authorities to raise duty demand to three years from two years prescribed in the current excise law.

         Refund of duty, the interest on delayed refunds will start accruing after 60 days from the date of the refund application instead of a 3-month period.

[ABS News Service/08.06.2024]

The Centre is proposing to introduce a bill - the Central Excise Bill, 2024 - in the upcoming budget session to replace the Central Excise Act, 1944.

The bill 2024 proposes to do away with the outdated provisions, align excise law with the GST and customs framework to ensure a more cohesive indirect tax system and incorporate the CENVAT credit provisions previously governed by a separate delegated legislation, according to the draft released earlier this week.

It also aims to relook at excise duty exemption given to the special economic zones (SEZ) and introduce stricter audit processes to increase transparency on the lines of GST and customs. "Our attempt is to table the draft bill in the budget session," a senior official said.

The Centre has asked for comments and suggestions from the stakeholders till June 26. The budget session is expected after the second week of July.

The bill introduces many interesting features. The proposed bill also seeks to relook at excise duty on goods produced or manufactured in a Special Economic Zone (SEZ). Any excise duty exemption will require separate notification.

The bill also intends to introduce the concept of 'related persons' from customs and GST Laws.

Besides, the bill has proposed to extend the limitation for department authorities to raise duty demand to three years from two years prescribed in the current excise law.

Further, in cases of refund of duty, the interest on delayed refunds will start accruing after 60 days from the date of the refund application instead of a 3-month period prescribed under the incumbent excise law.

"This bill may lead to a reduction in compliance burden, and provide a comprehensive legal framework better suited to the current economic landscape," Jain added.