What is Classification in Excise?
Classification in Excise
Means determining the headings and subheadings of CETA under which goods are covered
Why is Classification necessary?
There are thousands of goods in CETA. Classification helps in identifying rate of duty on different goods.
Scheme of Classification
It is based on HSN (Harmonized scheme of Nomencalture)
HSN is an internationally accepted scheme of nomenclature formulated as per directions of General Agreement of Trade and Tariff (GATT)
Second Schedule of CETA
It contains rate of Special Excise Duty
From 1.3.2006 onwards, all items are exempted from this duty.