The roots of Central Excise dates back to the historical “Dandi March” of Mahatma Gandhi where the manufacture of salt was taxed for the first time.
Duties of Central Excise are levied on goods manufactured or produced in India. It is levied under the authority of the Central Excise Act, 1944 at the rates prescribed in the First Schedule and Second Schedule to the Central Excise Tariff Act, 1985 as amended by Central Excise Tariff (Amendment) Act, 2004.
The effective rates may be lower pursuant to general /specific notifications issued by the government granting whole or partial exemption from duty. The duty, in most cases, is levied on the basis of value of the excisable goods.