Excise duty is one type of indirect tax levied on the goods produced within the country. This is totally reverse to custom duty system. Excise duty is levied on the manufactured good. Initially the excise duty was most commonly known as Central Excise Duty and gradually it was renamed to CENtral Value Added Tax (CENVAT).

Articles 268 to 281 of the Constitution of India have underlined the provisions of central excise duty under the administrative purview of Seventh Schedule of the Union list. Moreover the role and significance of central excise duty is mentioned under Central Excise Act, 1944. Gradually the functional aspects of excise duty have been redefined with the periodic amendment to the principal Act and introduction of new Acts. The Central Excise Tariff Act-1985, the New Central Excise (No. 2) Rules-2001, CENVAT Credit Rules-2001, Central Excise Appeal Rules-2001 etc., are some of the most significant Acts governing excise taxation system in India.

Excise Duty is one of the prime sources of revenue generation in India. The Central Board of Excise and Customs (CBEC) is the authorized governmental agency to regulate excise duty systems in India. It plays a significant role to lay down various rules and regulations for smooth functioning of excise regime.