Scribd
Upload
207 views4 pages

Concept of Goods Under Central Excise Act and GST Act.

The document discusses the concept of goods under the Central Excise Act and GST Act. It states that while the Central Excise Act did not define goods, courts interpreted goods to mean something that can be bought and sold in the market. The GST Act defines goods as every kind of movable property other than money and securities. Goods must be a new substance brought into existence that is known in the market to be subject to excise duty under the Central Excise Act.

Uploaded by

Shreya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
207 views4 pages

Concept of Goods Under Central Excise Act and GST Act.

The document discusses the concept of goods under the Central Excise Act and GST Act. It states that while the Central Excise Act did not define goods, courts interpreted goods to mean something that can be bought and sold in the market. The GST Act defines goods as every kind of movable property other than money and securities. Goods must be a new substance brought into existence that is known in the market to be subject to excise duty under the Central Excise Act.

Uploaded by

Shreya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Concept of Goods Under Central Excise Act and

GST Act.

Statutory Provisions.
The Goods and Services Tax Act levies GST on Goods
and Services. According to the provisions of Entry 84
of List 1 of the VIIth Schedule of the Constitution , all
goods produced and manufactured in India is subject to
levy of duty of Excise. However after coming into force
of GST Act , the power to levy GST is now a
concurrent powers between the Union and the States.

The Central Excise Act, 1944 did not provide a


definition of Goods but the Courts have tried to define
the goods for the purpose of levy of excise duty .
In South Bihar Sugar Mills Ltd. Etc . vs Union Of
India . AIR 1968 SC [Link] Union Of India vs Delhi
Cloth & General Mills 1963 SCR Supl. (1) 586, the
word goods was interpreted in its ordinary meaning . It
was laid down that
As the Central Excise Act does not define goods, the
legislature must be taken ,to have used that word in its
ordinary, dictionary meaning.
The dictionary meaning is that to become goods it must
be something which can ordinarily come to the market
to be bought and sold and is known to the market.
That it would be such an article which would attract
duty under the Excise Act.
The excise duty is leviable on "'goods“ but the Excise
Act itself does not define "goods" but defines "excisable
goods" as meaning "goods specified in 'the First
Schedule as being, subject to a duty of excise ."
Therefore the ordinary meaning of “goods” must be
considered to determine whether excise can be levied .
The Permanent Edition, Words and Phrases, on
meaning of the word "goods" states that:
The word 'goods' in Bailey's Large Dictionary is
defined as 'Merchandise'-, and in Johnson’s , it is
defined to be movables in a house; personal or
immovable estates; freight; merchandise,,"
Webster defines the word "'goods" as –
(1) movables; household, furniture;
(2) Personal or movable estate, as horses, cattle,
utensils, etc.,
(3) Wares; merchandise; commodities bought and sold
by merchants and traders.
These definitions make it clear that to become "goods"
an article must be something which can ordinarily
come to the market to be bought and Sold.
This consideration of the meaning of the word "goods"
an provides strong support for the view that
"manufacture" which is liable to excise duty under the
Central, Excises Act must be the "bringing into
existence of a new substance known, to the market."

The GST Act defines goods under Section 2 (52) as


“goods” means every kind of movable property other
than money and securities but includes actionable
claim, growing crops, grass and things attached to or
forming part of the land which are agreed to be severed
before supply or under a contract of supply;

You might also like