19.3.3 Types of Excise Taxes In India, the three types of Central Excise Taxes being collected include the Basic Excise Duty, Additional Duty of Excise, and Special Excise Duty. The Basic Excise Duty is charged under the Section 3 of the Central Excises and Salt Act, 1944. According to this all excisable goods other than salt produced or manufactured in India, has to pay the rates given in the schedule to the Central Excise Tariff Act, 1985. As per the Section 3 of the Additional Duties of Excise Act, 1957 it is authorized that only the goods described in the Schedule to this Act are liable for Excise Tax payments. Generally these are imposed under different categories like medicinal and toilet preparations, sugar and other industries development. The Special Excise Duty following the Section 37 of the Finance Act, 1978 was imposed on all excisable goods that are also subjected to Basic excise Duty under the Central Excises and Salt Act, 1944. However, the Finance Act provisions regarding the said fiscal year specify the levy and collection of the Special Excise Duty. CENVAT is payable by the manufacturer but is, ordinarily, recovered from the buyer as a part of consideration for sale of goods. To reduce the cascading effect of CENVAT, a scheme known as MODVAT was introduced in 1986, which has now been renamed as CENVAT (effective 1st April, 2000). Under the CENVAT Scheme, a manufacturer can avail of the credit of the central excise duties or additional duties of customs (i.e. CVD) paid on specified inputs and capital goods used in the manufacture of excisable goods and also service tax paid on eligible input services and utilize it in discharging central excise duty on finished excisable goods. The State has been also empowered to levy the duties of excise on: 1.alcoholic liquors for human consumption and 2.opium, Indian hemp and other narcotic drugs and narcotics manufactured in the State by the powers enshrined in the Constitution of India. 19.4 SALES TAX Sales tax is levied on the sale of movable goods. Most of the Indian States have replaced. Sales tax is the most important source of revenue to the states and is imposed on virtually all sales of goods. It is primarily the liability of the seller, who generally recovers it from the purchaser. Each state has its own sales tax act under which tax is imposed at different rates. Sales of imported items and sales by way of export are generally exempt from sales tax. Luxury goods are normally taxed at a higher rate than other commodities. The sales tax acts of certain states provide for certain additional levies, i.e., works contracts tax (imposed on a contractor for manufacture, erection, repairs, etc.), turnover tax (imposed on the value of turnover exceeding a certain limit) and purchaser tax (imposed on the value of goods purchased from suppliers that are not registered under the sales tax laws).