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Excise act on salt

Ashish (student) (366 Points)

22 October 2014

what is provsion of salt in excise law. need full coverage

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9 Replies

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 22 October 2014

Excise duty shall be levied and collected on all excisable goods other than salt, since salt is not an excisable goods. Further, from the definition of 'Factory' u/s 2(e) of CEA, 1944 excluded salt pans i.e place where the salt is manufactured. Accordingly, under excise act registration of the factory, where salt is manufactured is not required.

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Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 22 October 2014

In the above para one correction regarding excisable goods:- Salt is an excisable goods since it has finds the place in the schedules of central excise tariff act, but excise duty does nt attract on salt due to NIL rate of duty or through exemption notification.

Ashish (student) (366 Points)
Replied 22 October 2014

Thanx Kishor.

CA Shanky garg (Practicing Chartered Accountant) (217 Points)
Replied 22 October 2014

Salt is an Excisable Good Section 2(d), So, it is Chargeable to Excise duty. For Salt Rate of Duty is - NIL i.e. Salt is Excisable at NIL Rate. And, NIL Rate of Duty is a Rate of Duty.

Ashish (student) (366 Points)
Replied 22 October 2014

got it thnx Shanky

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karan (articled assistent) (34 Points)
Replied 22 October 2014

It doesnt make a difference whether salt is not excisable good or its excisable at nil rate

Ketan jain (student) (77 Points)
Replied 23 October 2014

Is the product processed using salt as their only raw material exercisable product? Say : raw salt is used in manufacturing soda ash, soda bicarbonate etc. Is exercise duty leviable on such finished products which uses only raw salt as their raw material?

Ashish (student) (366 Points)
Replied 23 October 2014

@ Ketan why not. They must be excisable goods since exemption is for salt and not on salt products. Rectify me if I m wrong.

Manjiri (Working in a CA firm) (24 Points)
Replied 16 September 2017

Is low sodium salt manufactured and sold by private players was also exempt from excise duty? They contain common salt and additional ingredients like anti caking agent, potassium iodate, & crystal modifier etc.