S.1 Short title extent and commencement

       (1) This Act may be called the Central Excise Tariff Act, 1985.
       (2) It extends to the whole of India.
       (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

S.2 Duties specified in the First Schedule and the Second Schedule to be levied

The rates at which duties of excise shall be levied under the Central Excise Act, 1944 (1 of 1944) are specified in the First Schedule and the Second Schedule.

S.3 Emergency power of Central Government to increase duty of excise

       (1) Where, in respect of any goods, the Central Government is satisfied that the duty leviable thereon under section 3 of the Central Excise Act, 1944 (1 of 1944) should be increased and that circumstances exist which render it necessary to take immediate action, the Central Government may, by notification in the Official Gazette, direct an amendment of the First Schedule and the Second Schedule to be made so as to substitute for the rate of duty specified in the First Schedule and the Second Schedule in respect of such goods, -
       (a) in a case where the rate of duty as specified in the First Schedule and the Second Schedule as in force immediately before the issue of such notification is nil, a rate of duty not exceeding fifty per cent ad valorem expressed in any form or method;
       (b) in any other case, a rate of duty which shall not be m

S.5 Power of Central Government to amend First and Second Schedules

       (1)Wherethe Central Government is satisfied that it is necessary so to do in the publicinterest, it may, by notification in the Official Gazette, amend the FirstSchedule and the Second Schedule:
       Providedthat such amendment shall not alter or affect in any manner the rates specifiedin the First Schedule and the Second Schedule in respect of goods at whichduties of excise shall be leviable on the goods under the Central Excise Act,1944 (1 of 1944).
       (2)Every notification issued under sub-section (1) shall be laid, as soon as may beafter it is issued, before each House of Parliament, while it is in session, fora total period of thirty days which may be comprised in one session or in two ormore successive sessions, and if, before the expiry of the session immediatelyfollowing the session or the successive sessions aforesaid, both Houses agree

S.4 Consequential amendments of and construction of references

       Consequential amendments of, and construction of references to the First Schedule to Act 1 of 1944. In the Central Excise Act, 1944, -
       (a) for the words "First Schedule", wherever they occur, the words and figures "Schedule to the Central Excise Tariff Act, 1985" shall be substituted;
       (b) in section 2, for clause (f), the following clause shall be substituted; namely :-
       '(f) "manufacture" includes any process,-
       (i) incidental or ancillary to the completion of a manufactured product; and
       (ii) which is specified in relation to any goods in the Section or Chapter Notes of the Schedule to the Central Excise Tariff Act, 1985 as amounting to manufacture,
       and the wo

Sch.1 FIRST SCHEDULE

       FIRST SCHEDULE
       General of this Schedule Rules for the Interpretation
       SECTION I LIVE ANIMALS; ANIMAL PRODUCTS
        ‡‡ Chapter 1 ‡‡ Chapter 2 ‡‡ Chapter 3 ‡‡ Chapter 4 ‡‡ Chapter 5 ‡‡
       SECTION II VEGETABLE PRODUCTS
        ‡‡ Chapter 6 ‡‡ Chapter 7 ‡‡ Chapter 8 ‡‡ Chapter 9 ‡‡ Chapter 10 ‡‡ Chapter 11 ‡‡ Chapter 12 ‡‡ Chapter 13 ‡‡ Chapter 14 ‡‡
       SECTION III ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS; PREPARED EDIBLE FATS; ANIMAL OR VEGETABLE WAXES
       ‡‡ Chapter 15 ‡‡
       SECTION IV PREPARED FOODSTUFFS; BEVERAGES, SPIRITS AND VINEGAR; TOBACCO AND MANUFACT0URED TOBACCO SU

Legal Comments

• "Introduction" - The Central Excise Tariff Act 1985 operates in a framework where tariff items are fixed in a schedule and classification governs the duty payable; HSN-based interpretation is widely recognized in case law to resolve classification disputes. [Source: M. P. Agencies VS State of Kerala, Commissioner of Central Excise, Hyderabad VS Sarvotham Care Limited, D. C. W. Limited VS Union of India]

• "What Section Says" - Section 3 of the Central Excises and Salt Act, 1944 imposes duty on excisable goods produced or manufactured in India at rates set in the tariff schedule; the 1985 Act provides the detailed tariff schedule and rules for classification and valuation, with Rule 8 and Rule 9A guiding exemptions and timing of duty. [Source: Hindalco Industries Ltd. VS Collector of Central Excise, Allahabad, Commissioner of Central Excise, Vadodara VS Vadilal Gases Ltd. , RAMDEV AGENCIES VS ADDL. ASSTT. COMMR. OF COMMERCIAL TAXES]

• "Essential ingredients" - (i) Excisable goods must be manufactured in India; (ii) goods must be known to the market and capable of being sold (marketability); (iii) proper classification under the correct tariff item; (iv) compliance with notification/exemption schemes; (v) adherence to time limits for refunds/claims. [Source: Nicholas Piramal India Ltd. VS Commnr. of Central Excise, Mumbai, Nicholas Piramal India Ltd. VS Commnr. of Central Excise, Mumbai, COMMISSIONER OF CENTRAL EXCISE VS BHUSHAN STEELS AND STRIPS LIMITED]

• "Scope of Section" - The scope covers classification, exemption, refunds, and adjudication under Sections 11A, 11B, 35L, 35E, and 35A as interpreted across several Supreme Court decisions; it also embraces the harmonisation with the HSN for consistent interpretation. [Source: Tube Products of India VS Union of India, M. P. Agencies VS State of Kerala, South India Structural Corporation Limited VS Assistant Collector of Central Excise, Madras]

• "Punishment for Section" - Sanctions arise through penalties under Rule 210 and related provisions for misdeclaration or contravention; extended periods may be invoked under Section 11A for evasion, and refunds can be denied or permitted with penalties as per statutory provisions. [Source: PRAKASH SECURITY DEVICES (INDIA) VS UNION OF INDIA, Tibrewal Industries VS Collector of Central Excise, Commissioner of Central Excise, Mumbai VS Fiat India (P) Ltd. ]

• "Legal Comment 1" - The Court consistently underscores that classification must be guided by the HSN and its Explanatory Notes; where there is no express Indian tariff indication, the HSN interpretation prevails to reduce disputes. [Source: M. P. Agencies VS State of Kerala, Commissioner of Central Excise, Hyderabad VS Sarvotham Care Limited, Nicholas Piramal India Ltd. VS Commnr. of Central Excise, Mumbai]

• "Legal Comment 2" - Marketability is an essential ingredient for liability to excise; goods must be known to the market and capable of sale; intermediate products may still be dutiable if marketable, per leading rulings on Heading 29.36 and related items. [Source: Nicholas Piramal India Ltd. VS Commnr. of Central Excise, Mumbai, Nicholas Piramal India Ltd. VS Commnr. of Central Excise, Mumbai]

• "Legal Comment 3" - The transitional shift from old tariff entries to the 1985 tariff has been treated as a matter of interpretation, with retrospective applicability of exemptions recognized where appropriate; classification prior to 28.2.1986 was under old tariff, thereafter under new tariff. [Source: Collector Of Central Excise, Hyderabad VS Bakelite Hylam LTD. , SIDHARATH PHARMACEUTICALS VS COLLECTOR OF CENTRAL EXCISE, AHMEDABAD]

• "Legal Comment 4" - The statement of objects and reasons for the 1985 Act emphasised harmonisation with the international HS system to reduce disputes; courts have treated HSN as a “safe guide” for interpretation. [Source: Crane Betel Nut Powder Works, Guntur VS Commissioner of Customs and Central Excise, tirupathi, Commissioner of Central Excise, Hyderabad VS Sarvotham Care Limited]

• "Legal Comment 5" - In cases of conflicting entries, the rule-based hierarchy (specific heading, then section/chapter notes) governs; Rule 3(a) of General Rules for Interpretation provides for context and ancillary notes to resolve ambiguities. [Source: Commissioner of Central Excise, Chennai-II Commissionerate VS Tarpaulin International, SALORA INTERNATIONAL LTD. VS COMMISSIONER OF CENTRAL EXCISE, NEW DELHI]

• "Legal Comment 6" - The Court has addressed refunds for excess duty when classifications change; if duties paid were under a prior classification, refunds may be granted under Section 11B, subject to time limits and proof of payment, with guidance from Mafatlal-like principles. [Source: Tube Products of India VS Union of India, INDO METAL INDUSTRIES VS ASSTT. COLLECTOR OF CENTRAL EXCISE]

• "Legal Comment 7" - Where manufacturing is contested, manufacture requires a transformation resulting in a new and distinct article; mere processing or assembly may not amount to manufacture unless it yields a marketable new good. [Source: Commissioner Of Central Excise, Goa VS Funskool (India) Ltd. , ANIL KUMAR SUD VS STATE OF UTTARANCHAL]

• "Legal Comment 8" - The Court recognises “marketability” as a gatekeeper for excise: captively consumed intermediate products may still attract duty if marketable; conversely, non-marketable products cannot be taxed as excisable goods. [Source: Nicholas Piramal India Ltd. VS Commnr. of Central Excise, Mumbai, Nicholas Piramal India Ltd. VS Commnr. of Central Excise, Mumbai]

• "Legal Comment 9" - The jurisprudence reiterates that classification must be resolved with reference to HSN where possible; if there is no clear indication in Indian Tariff, the HSN semantics prevail; where conflicts exist, higher courts prefer harmonised nomenclature. [Source: Austin Engineering Co. Ltd. & another VS Union of India & others, Commissioner of Central Excise, Hyderabad VS Sarvotham Care Limited, M. P. Agencies VS State of Kerala]

• "Legal Comment 10" - Section 11A extended period and penalties apply when there is suppression of fact or misdeclaration; the Supreme Court has treated the existence of a genuine dispute separately from concealment, guiding the use of extended periods. [Source: Commissioner of Central Excise, Mumbai VS Fiat India (P) Ltd. , Shahnaz Ayurvedics VS Commissioner of Central Excise , Commissioner of Central Excise, Meerut VS Rishabh Valveleen (P) Ltd. , Haridwar]

• "Legal Comment 11" - Exemption notifications under Rule 8(1) and Rule 174, including SSI exemptions, require rational criteria; courts have upheld exemptions where criteria are intelligible and reasonably related to the object of the exemption; retroactivity is recognized in some contexts. [Source: TILOK TEXTILE MILLS LIMITED VS UNION OF INDIA, PRAKASH SECURITY DEVICES (INDIA) VS UNION OF INDIA, S. S. JAIN VS STATE OF WEST BENGAL]

• "Legal Comment 12" - The nature of “goods” for excise includes packaging components when they form a saleable or marketable unit; egg trays or similar items may be treated as containers or not depending on their ability to function as packaging for transport; courts examine the meaning in the tariff context. [Source: G. Claridge And Company LTD. VS Collector Of Central Excise, Pune, COMMISSIONER OF CENTRAL EXCISE VS BHUSHAN STEELS AND STRIPS LIMITED]

• "Legal Comment 13" - Classification disputes often hinge on the interplay between old and new tariff regimes; courts urge adherence to the latest scheme while recognizing transitional provisions and the continuing relevance of pre-1986 jurisprudence in appropriate contexts. [Source: Collector Of Central Excise, Hyderabad VS Bakelite Hylam LTD. , Tibrewal Industries VS Collector of Central Excise]

• "Legal Comment 14" - The Central Excise Tariff Act relies on a structured schedule; Section 2(f) defines manufacture, including processes incidental to completion; a change in process may amount to manufacture if it yields a new and identifiable article. [Source: ANIL KUMAR SUD VS STATE OF UTTARANCHAL, Commissioner Of Central Excise, Goa VS Funskool (India) Ltd. ]

• "Legal Comment 15" - Explanatory notes and HSN are treated as authoritative guides for interpretation, with courts occasionally remanding to Tribunals/CESTAT for proper application of these guides in light of nuanced fact patterns. [Source: Nicholas Piramal India Ltd. VS Commnr. of Central Excise, Mumbai, 01200070525]

• "Legal Comment 16" - The judicial approach to tariff interpretation emphasizes consistency with international nomenclature; where Indian entries conflict with HSN, courts prefer the HSN meaning unless the statute indicates a different intention. [Source: Tube Products of India VS Union of India, Crane Betel Nut Powder Works, Guntur VS Commissioner of Customs and Central Excise, tirupathi]

• "Source Reference Snapshot" - Major authorities include Collector of Central Excise Shillong v. Wood Craft Products Ltd., 1995, which anchors the HSN-guided approach; Raj Pack Well Ltd. Indore v. Union of India; various SC decisions on classification, marketability, and refunds. [Source: M. P. Agencies VS State of Kerala, SHELLYA PLASTICS INDUSTRY PVT. LTD. VS UNION OF INDIA (UOI), Tube Products of India VS Union of India]

• "Source Reference 1" - Comprehensive treatment of HSN-based interpretation and its safety guide role for tariff classification. [Source: M. P. Agencies VS State of Kerala]

• "Source Reference 2" - Objects and Reasons of the Central Excise Tariff Bill 1985; emphasis on harmonisation with HS Nomenclature. [Source: Crane Betel Nut Powder Works, Guntur VS Commissioner of Customs and Central Excise, tirupathi]

• "Source Reference 3" - Supreme Court discussions on manufacture definition and marketability thresholds; extended periods under 11A. [Source: Commissioner Of Central Excise, Goa VS Funskool (India) Ltd. , Tube Products of India VS Union of India]

• "Source Reference 4" - Mafatlal and related refund jurisprudence guiding post-classification refunds under Section 11B. [Source: INDO METAL INDUSTRIES VS ASSTT. COLLECTOR OF CENTRAL EXCISE, Tube Products of India VS Union of India]

Note: Only points with available source references from the provided materials have been included. Several nuanced strands of jurisprudence exist across many cases; the bullets above distill representative themes and cite pertinent sources in square brackets.