1. Central Excise procedures are perceived by the trade as cumbersome involving time consuming documentation, scrutiny and physical examination of goods, divergent practices and a high degree of individual discretion, resulting in impediments to the smooth movement of trade and acting against the interests of genuine importers, exporters and manufacturers. Appreciating this concern we are committed to streamlining and simplifying the procedures and setting a climate for voluntary compliance. The introduction of electronic processing of documents also entails a change in approach and re-engineering of Customs and Central Excise processes based on selectivity, risk assessment and reduced intervention.

2. We envisage the following measures to achieve this objective :-


1. Study all the existing Central Excise procedures, and streamline and simplify them, so that the assesses are encouraged to comply voluntarily; (Already achieved)

2. Evolve a new and comprehensive Central Excise law; (achieved)

3. Adopt unified Modvat rules for inputs and capital goods. (achieved)

4. Move towards a system of periodical payment of duties by assesses; (achieved)

5. Replace physical checks with selective audit; (achieved)

6. Accept records maintained under Companies Act for the purpose of administration of Central Excise laws in lieu of statutory records; (achieved)

7. Evolve simplified schemes for refunds and rebates due to manufacturers and exporters;

8. Eliminate divergent practices in the applicant of Excise laws and procedures at different formations by effective monitoring and analysis of the computerised database.

9. Undertake a continual review of Excise procedures so as to be responsive to the changing situations.


1. The use of information technology has brought about a revolution in the manner in which business operations are carried out throughout the world. More and more operations are being carried out 'on-line', reducing the time taken and taking the world towards ' paperless' operations. Thus, use of 'Electronic Data Interchange' (EDI) has been accepted widely as the means of interface between business partners and Government agencies

2. Indian Customs is also committed to adopt this new deal so as to attain global standards in speeding up flow of goods, thereby reducing the turn-around and inventory carrying costs, imparting vital competitive edge to the Indian trade and industry.

3. Building on the success of the pilot EDI project at Delhi Air Cargo, we would seek to promote electronic commerce and facilitate expeditious clearance of cargo through the following measures :-

(i) Automated processing of import and export entries and cargo declarations, with least paper work and human intervention, at the sea ports, airports, inland container depots, container freight stations and land border station.

(ii) Enabling EDI with businesses, shipping lines, airlines, carriers, customs agents, custodians and other agencies concerned with cargo clearance and international trade.

(iii) Providing access to customs electronic infrastructure to enable business partners to obtain information required by them for making compliance.

(iv) Computerisation of all the other customs operations and management activities to provide better service to our clients and enhance our performance.

4. Similarly, we envisage the following measures for enhancing the use of information technology in our excise operations :-

(i) Receipt and processing of excise assessment returns electronically, through EDI, Internet and other means.

(ii) Enabling the assessees to maintain computerised records, issue of computer generated invoices and file returns electronically.

(iii) Having an automated 'returns' processing system to assist assessment and audit functions.

(iv) Building a Management Information System to assist policy making, monitoring of revenue trends and combating duty evasion by developing assessee profiles


Compliance with tax laws is the shared responsibility of the tax payer and the tax collector. Nevertheless, a tax system can be effective only if it can systematically obtain voluntary compliance of the tax laws by the assesses. To encourage voluntary compliance, the tariff levels should be moderate, the procedures simple, and the cost burden of compliance minimal. There should be certainly about the assessments made and duty liability so as to eliminate retroactive burdens on the assesses. Further, we believe mutual trust should be the foundation on which the relationship between us and our clients are built.

Contact Information

Office of the Commissioner of Central Excise
No.1, Williams Road,

Recent Posts