Federal Excise Act, 2005, was promulgated with effect
from 1st July, 2005, repealing the Central Excises
Act, 1944. Following are some of the significant changes
brought about by the new Act:
word “Federal” was used in place of “Central”. Therefore,
now the term “Federal Excise Duty” is more appropriate
as compared to old “Central Excise Duty” for the duties
of excise levied under the 2005 Act.
system of physical supervision has been entirely done
away with and now all clearances will be self-assessed
and no prior permission for clearance will be required.
payment of duty will be on monthly basis and the duty
on all clearances during the month will be payable
by the 15th of next month. This is in contrast to
previous requirement of payment of duty prior to clearance.
gate passes are required for clearances as in the
taxation has been eliminated by allowing adjustment
of the excise duty paid on the input goods used directly
in the manufacture of excisable goods.
some services and goods FED is payable in VAT more
i.e. in the same manner as provided in the Sales Tax
Act, 1990. For details see the link ‘Goods/Services
Liable to Excise Duty’ on this page.