What are Excisable Goods

Section 2 (d) of Central Excise Act defines 

Excisable Goods as

‘Goods specified in the First and Second Schedule to Central Excise Tariff Act,1985

as being subject to a duty of excise

and includes salt’.



‘Goods’ includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable.


Conditions to be satisfied to be classified as Excisable Goods

  1. They must be goods (Movable+ Marketable)
  2. They must be mentioned in First and Second Schedule to Central Excise Tariff Act,1985
  3. Rate of Duty must be specified on it.
  4. Salt is also considered Excisable Goods although no duty is charged on it.


Exam Questions

Examine whether central excise duty is leviable in the following situations:-
Mohan Builders have construcdted an office building for M/s XYZ & Co.

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Mittal Brothers are the manufacturers of certain non-excisable goods. They manufactured
goods worth ` 2,00,000 on 25.06.20XX. These goods were removed from the factory on
20.09.20XX. On 01.09.20XX, these goods were brought within the purview of the Central
Excise Tariff and chargeable to excise duty @ 12.5%.
Discuss the leviability of excise duty on the goods manufactured by Mittal Brothers.

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.