The Customs, Central Excise & Service Tax Zone, Lucknow is a Central Government organization, working under Central Board of Excise & Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India. The Lucknow Zone is entrusted to monitor the work of Customs, Central Excise & Service Tax, being performed by three executive Commissioners, having their offices at Allahabad, Kanpur & Lucknow and three Commissioners (Appeal) also having their offices at Allahabad, Kanpur & Lucknow. The jurisdiction of Lucknow zone spreads over eastern part of UP to Central UP and few part of western UP.
Central Excise is the biggest source of revenue of Government of India through Indirect Taxation. The Central Excise duty, in broad term, is a production tax on manufacturing of goods. It is levied from the manufacturers and producers of the goods. It covers almost every commodity. The present rate of Central Excise duty varies from 8 to 10 percent adv-valorem. However, in some commodities, MRP based duty, specific rate of duty & compounded levy are applicable. An optional exemption from Central Excise duty, subject to conditions, is available to the units, having turn over below Rs. 1.5 Crore. In few commodities this exemption is not available. Main guiding statutes for Central Excise administration are Central Excise Act, 1944, Central Excise Tariff Act, 1985 & Central Excise Rules, 2002.
Customs duty is levied on import of goods. In Lucknow zone, the functionary of customs works is Inland Containers Depot (ICD) situated at Agra, Kanpur, Varanasi & Bhadohi from where the import and export of the goods take place. The guiding laws of Customs functions are Customs Act, 1962 and Customs Tariff Act, 1975.
Service Tax is leviable on amount received by a service provider in lieu of rendering taxable service. At present, 114 services are taxable. In certain cases, service receivers have also to pay service tax directly to the department. Current rate of Service Tax is 10.2% of taxable value. Like Central Excise, the small scale exemption, in Service Tax is also available upto the turnover of Rs.10 Lacs in terms of conditions prescribed in notification 6/2005-ST dated 01.03.2005. Besides, in few services, abatement from taxable value, to calculate service tax, is also available under notification 1/2006-ST dated 01-03-2006 and 13/2008-ST dated 01.03.2008. The Service Tax is governed by the Finance Act, 1994 and the Service Tax Rules, 1994.
CENVAT Credit Rules, 2004 is meant for availing credit of Central Excise duty and Service Tax, paid on procurement of goods and services, while manufacturing a product or rendering a service this credit may be used for payment of Central Excise duty and Servise Tax.