What is Central Board of Indirect Taxes and Customs (CBIC)?

Why in News?

• The bill intends to replace the Central Excise Act of 1944 after its implementation.
• The main aim of this bill is to remove outdated and redundant provisions following the introduction of the Goods and Services Tax (GST).
• It addresses the long-standing demand from industry players to align excise duty provisions with GST legislation.

About Central Board of Indirect Taxes and Customs (CBIC):

• CBIC (erstwhile Central Board of Excise and Customs) is a part of the Department of Revenue under the Ministry of Finance, Government of India.
• CBIC administers all the indirect tax-related matters in India.
• It deals with the tasks of formulation of policy concerning levy and collection of Customs, Central Excise duties, Central Goods & Services Tax and IGST, prevention of smuggling and administration of matters relating to Customs, Central Excise, Central Goods & Services Tax, IGST, and Narcotics to the extent under CBIC's purview. 
• The Board is the administrative authority for its subordinate organizations, including Custom Houses, Central Excise and Central GST Commissionerates, and the Central Revenues Control Laboratory.
• It also ensures that taxes on foreign and inland travel are administered as per the law, and the collection agencies deposit the taxes collected to the public exchequer promptly.
• Under customs, matters relating to thecollection of customs duty at:
  • International Airports
  • Seaports
  • Custom Houses
  • International Air Cargo Stations
  • International Inland Container Depots (ICDs)
  • Land Customs Station
  • Special Economic Zones (SEZs)
  • Container Freight Stations (CFSs) are administered by the CBIC.
• Organisation:
  • The CBIC is headed by a Chairman, who is appointed by the Indian Government.
  • The organization is divided into various divisions and zones, each headed by a Chief Commissioner or Director General.
  • The CBIC also has a GST intelligence wing, which is responsible for detecting and preventing tax evasion.

Q1: What is Excise Duty?

An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT). It is mandatory to pay duty on all goods manufactured, unless exempted.

Source: Centre proposes new excise law, ease of doing business in focus