Central Excise Day 2026: History, Significance and Role of CBIC in India’s Tax System

Central Excise Day is celebrated annually on 24 February to mark the introduction of the Central Excise and Salt Act, 1944, later renamed as the Central Excise Act, 1944.

Key Historical Facts

• The Act consolidated 11 different excise-related laws into a unified framework.

• It established procedures for levy and collection of excise duty on manufactured goods.

• It strengthened the administrative structure for indirect taxation.

• It played a crucial role in revenue mobilization during the pre-independence period.

Over time, the Act became the backbone of India’s indirect tax system until the introduction of GST.

Significance of Central Excise Day 2026

Central Excise Day 2026 is not just a commemorative event—it is a reminder of the importance of tax compliance and efficient governance.

Why This Day Matters

• Recognizes the service and dedication of CBIC officers.

• Promotes awareness about indirect taxation.

• Encourages transparency and accountability in revenue administration.

• Highlights reforms in digital tax systems.

• Strengthens trust between taxpayers and authorities.

Tax revenue collected under excise and customs duties supports infrastructure development, social welfare schemes, defense expenditure, and economic growth.

Role of CBIC in India’s Tax System

The Central Board of Indirect Taxes and Customs functions under the Department of Revenue, Ministry of Finance. It is responsible for administering indirect taxes across the country.

Major Responsibilities of CBIC

• Collection of Customs Duty

• Administration of Central Excise Duty

• Implementation of Central GST (CGST) and Integrated GST (IGST)

• Prevention of smuggling and illegal trade

• Policy formulation and enforcement related to indirect taxation

CBIC ensures seamless coordination between traditional excise systems and modern GST mechanisms.

Central Excise in the GST Era

With the introduction of the Goods and Services Tax (GST) in 2017, many indirect taxes such as VAT, service tax, and excise duty on most goods were merged into a unified tax structure.

However, Central Excise Duty continues to apply to specific goods, including:

• Petroleum products

• Tobacco products

• Certain industrial goods

This selective continuation ensures steady revenue generation from high-consumption sectors.

How Central Excise Day 2026 Is Observed

On Central Excise Day 2026, CBIC offices across India organize various events and awareness programs.

Activities Include

• Seminars on tax reforms and compliance

• Workshops on GST and customs modernization

• Awareness drives for businesses

• Award ceremonies honoring outstanding officers

• Cultural and educational programs

These events help bridge the gap between tax authorities, industries, and citizens.

Importance of Central Excise in India’s Economy

Before GST, Central Excise was one of the largest sources of revenue for the Union Government. Even today, excise duty on fuel and tobacco significantly contributes to government finances.

Economic Importance

• Provides stable and predictable revenue.

• Supports public welfare programs and infrastructure projects.

• Regulates consumption of specific goods.

• Strengthens enforcement against illegal trade.

Central Excise remains a critical component of India’s fiscal policy, particularly in sectors not yet fully integrated into GST.