CENTRAL EXCISE BILL, 2024 (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     6th June 2024        
output themes

Context: The proposed Central Excise Bill, 2024, does not exempt excisable goods produced or manufactured in a Special Economic Zone (SEZ) and brought to any other place in India from duty.

Central Excise Bill, 2024

  • About: The Bill aims to enact a comprehensive modern central excise law with a focus on facilitating ease of doing business and eliminating outdated provisions.

o The Bill also advocates for certain powers to central excise officers, including a structured framework for audit.

  • Key provisions: Transferability of unutilised credit balances and an extended time frame for duty recovery underscore the government’s commitment to facilitating smoother operations for enterprises
  • Replacement: Once enacted, the Bill will supersede the Central Excise Act of 1944, ushering in a contemporary regulatory framework.
  • Structure: The Bill consists of twelve chapters, delineating various aspects of central excise regulation, along with 114 sections and two schedules

Special Economic Zone

  • Definition: It is a territory within a country that is typically duty-free (Fiscal Concession) and has different business and commercial laws chiefly to encourage investment and create employment
  • Origin: The Special Economic Zone (SEZ) policy in India first came into inception on April 1, 2000. 

o from 2000 to 2006 under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through tSEZs in India functioned he provisions of relevant statutes.

  • Prime objective: to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. 
  • SEZ act: The Special Economic Zones Act was passed in 2005 and came into force along with the SEZ Rules in 2006.