Liability to pay Central Excise Duty:-
The manufacturers of goods are responsible to pay the excise duty. There are following types of parties which can be considered as a manufacturer:
- Those who personally manufacture the goods on which excise duty is to be paid
- Those who have hired labour to manufacture the goods
- Those who have contracted the manufacturing of goods to third party
- In case where factories are leased out, the liability of excise duty payment is lies on the lessee
- If goods are manufactured by supplyinf the raw materials, the liability of excise duty will rest on the person who actually carried out the manufacturing activities and not on the supplier of raw material.
Exemption from Paying the Excise Duty:
- Excise duty is not levied if produced good is for export
- Exemption are available in some cases on the basis of raw material used for the production
- Some manufacturing or production processes are exempted from paying excise duty
- Exemption is also available on the basis of financial worth of clearances or turnover in any financial year.