AN ANALYTICAL STUDY OF CENTRAL EXCISE DUTY WITH SPECIAL REFERENCE TO CENTRAL EXCISE COMMISSIONERATE, TIRUCHIRAPPALLI A thesis submitted to Bharathidasan University for the Award of the Degree of DOCTOR OF PHILOSOPHY IN ECONOMICS By P. NADIMUTHU (Reg.No.023811/Ph.D.2/Economics/P.T./Re.regn./April 2010) Research Supervisor Dr. P. NATARAJAN Assistant Professor, Rajah Serfoji Govt. College (Autonomous) Thanjavur. DEPARTMENT OF ECONOMICS A.Veeriya Vandayar Memorial Sri Pushpam College (Autonomous) Poondi – 613 503 Thanjavur SEPTEMBER 2011 Dr. P. NATARAJAN, M.A., M.Phil., M.Ed., Ph.D., M.B.A., Assistant Professor, P.G. and Research Department of Economics, Rajah Serfoji Govt. College (Autonomous) Thanjavur – 613 005. CERTIFICATE This is to certify that the thesis entitled “AN ANALYTICAL STUDY OF CENTRAL EXCISE DUTY WITH SPECIAL REFERENCE TO CENTRAL EXCISE COMMISSIONERATE, TIRUCHIRAPPALLI” submitted to Bharathidasan University, Tiruchirapalli, for the award of the Degree of DOCTOR OF PHILOSOPHY IN ECONOMICS is a bonafide record of research work carried out by Thiru P. NADIMUTHU, under my guidance and supervision in the Department of Economics, A.Veeriya Vandayar Memorial Sri Pushpam College (Autonomous), Poondi, Thanjavur, Tamil Nadu, India. I further certify that no part of the thesis has been submitted anywhere else for the award of any degree, diploma, associateship, fellowship or other similar titles to any candidate. Place: Thanjavur, Date : (P. NATARAJAN) Research Adviser. DECLARATION I hereby declare that the work embodied in this thesis has been originally carried out by me under the supervision of Dr. P. NATARAJAN, Assistant Professor, P.G. and Research Department of Economics, Rajah Serfoji Government College (Autonomous), Thanjavur and this work has not been submitted either whole or in part for any other degree or diploma at any university. Date: ( P. NADIMUTHU ) Research Scholar. ACKNOWLEDGEMENT I first thank to the living legend Shriman K. Thulasiah Vandayar, Secretary and Correspondent, A.Veeriya Vandayar Memorial Sri Pushpam College (Autonomous), Poondi, Thanjavur District. I express my profound sense of gratitude to my research supervisor Dr. P.Natarajan, M.A., M.Phil., M.Ed., Ph.D., M.B.A., Assistant Professor of Economics, Rajah Serfoji Govt. College (Autonomous), Thanjavur, for his excellent guidance and this thesis could not have been completed without his inspiring valuable suggestions, constant help and encouragement throughout the period of the study, I am highly indebted to his attention and guidance. I thank Dr. S. Chinnaiyan, M.A., M.Phil., Ph.D., Principal, A.Veeriya Vandayar Memorial Sri Pushpam College (Autonomous), Poondi, Thanjavur District, for having granted permission to me to do Ph.D. programme. I am grateful to Dr. R. Rajendran, Co-ordinator, Department of Economics, A.Veeriya Vandayar Memorial Sri Pushpam College (Autonomous), Poondi, Thanjavur District, and other faculty members in the Department of Economics, for the interest they have shown and encouraged me throughout this work. I am highly indebted to Sri Shyam Raj Prasad, Commissioner, P. Devaraj, Deputy Commissioner, Shri Pappu Elangovan, Deputy Commissioner of Central Excise (Retd.), Tiruchirappalli, for his constant encouragement and personal interest in my topic of research. My special thanks to Mrs. S. Vetriselvi, Superintendent, Central Excise – Division, Thanjavur, for her encouragement. I express my sincere thanks to Mr. Gopalakrishnan, Statistical Section, Central Excise Commissionerate, Tiruchirappalli, for his kind co-operation that he has extended throughout my study. I extend my whole hearted gratitude to Dr. M. Govinda Rao, Director, Dr. R. Kavita Rao, Professor, Dr. Pinaki Chakraborthy, Professor, National Institute of Public Finance and Policies, New Delhi. I extend my sincere thanks to Dr. A. Ganesan, Librarian and Staff members of Library, A.Veeriya Vandayar Memorial Sri Pushpam College, Poondi, Mr. Sivachidambaram, Librarian, NIPFP, New Delhi, The Librarian, ICSSR Documentations Centre, New Delhi, H.T. Parekh Library, Institute of Financial Management & Research (Chennai), Madras School of Economics, for their timely help to collect theories and review of literature. I sincerely thank to Dr. G. Rajendran, Associate Professor of Economics, Gurunanak College, Chennai and Dr. R. Palanivelu, Reader, Department of Economics, A.V.V.M. Sri Pushpam College, Poondi, who have acted as Doctoral Committee Members and help me for my research work. I express my thanks to Mr. G. Santhakumar, Mr. S. Thennarasu and Mr. C. Ravindran, Research Scholars, Rajah Serfoji Govt. College, Thanjavur. I express my appreciation to Sri Balaji Computers, Madurai, for his neat execution of computing and typing of my research work. On personal note, I deeply acknowledge the enthusiasm, encouragement and support rendered to complete my research work by my father Mr. K. Perumal, my father-in-law Mr. A. Vairakkannu, my wife Mrs. V. Sivagamasundari, son N. Nanda Kishore and my daughter N. Prapthi. P. NADIMUTHU. CONTENTS CHAPTER PAGE I INTRODUCTION 1 II REVIEW OF LITERATURE 11 III CENTRAL EXCISE DUTIES IN INDIA 39 IV CENTRAL EXCISE COMMISSIONERATE – AN OVERVIEW 75 V PERFORMANCE EVALUATION OF CENTRAL 144 EXCISE REVENUE REALISATION OF TIRUCHIRAPPALLI COMMISSIONERATE – DIVISION-WISE VI PERFORMANCE EVALUATION OF CENTRAL 169 EXCISE REVENUE REALISATION OF TIRUCHIRAPPALLI COMMISSIONERATE – COMMODITY - WISE VII SUMMARY OF FINDINGS AND 216 SUGGESTIONS BIBLIOGRAPHY APPENDIX Contributions by the Research Scholar LIST OF TABLES TABLE NO. TITLE PAGE NO. 5.1 Gross Revenue, Rebate and Net Revenue – Tiruchirappalli - I Division 147 5.2 Average and Stability of Gross Revenue, 149 Rebate and Net Revenue – Tiruchirappalli - I Division 5.3 Trend and Growth of Gross Revenue, Rebate 150 and Net Revenue – Tiruchirappalli - I Division 5.4 Gross Revenue, Rebate and Net Revenue – 151 Tiruchirappalli - II Division 5.5 Average and Stability of Gross Revenue, 154 Rebate and Net Revenue – Tiruchirappalli - II Division 5.6 Trend and Growth of Gross Revenue, Rebate 155 and Net Revenue – Tiruchirappalli - II Division 5.7 Gross Revenue, Rebate and Net Revenue – 156 Thanjavur Division 5.8 Average and Stability of Gross Revenue, 159 Rebate and Net Revenue – Thanjavur Division 5.9 Trend and Growth of Gross Revenue, Rebate 160 and Net Revenue – Thanjavur Division 5.10 Gross Revenue, Rebate and Net Revenue – 161 Karur Division 5.11 Average and Stability of Gross Revenue, 163 Rebate and Net Revenue – Karur Division 5.12 Trend and Growth of Gross Revenue, Rebate 164 and Net Revenue – Karur Division TABLE NO. TITLE PAGE NO. 5.13 Gross Revenue, Rebate and Net Revenue – 165 Karaikal Division 5.14 Average and Stability of Gross Revenue, 167 Rebate and Net Revenue – Karaikal Division 5.15 Trend and Growth of Gross Revenue, Rebate 168 and Net Revenue – Karaikal Division 6.1 Gross Revenue, Rebate and Net Revenue – 172 Cement 6.2 Average and Stability of Gross Revenue, 173 Rebate and Net Revenue – Cement 6.3 Trend and Growth of Gross Revenue, Rebate 174 and Net Revenue – Cement 6.4 Gross Revenue, Rebate and Net Revenue – 175 Petroleum Products 6.5 Average and Stability of Gross Revenue, 176 Rebate and Net Revenue – Petroleum Products 6.6 Trend and Growth of Gross Revenue, Rebate 177 and Net Revenue – Petroleum Products 6.7 Gross Revenue, Rebate and Net Revenue – 179 Chemical & Chemical Products 6.8 Average and Stability of Gross Revenue, 180 Rebate and Net Revenue – Chemical & Chemical Products 6.9 Trend and Growth of Gross Revenue, Rebate 181 and Net Revenue – Chemical & Chemical Products 6.10 Gross Revenue, Rebate and Net Revenue – 182 Paper and Paper Products TABLE NO. TITLE PAGE NO. 6.11 Average and Stability of Gross Revenue, 183 Rebate and Net Revenue – Paper and Paper Products 6.12 Trend and Growth of Gross Revenue, Rebate 184 and Net Revenue – Paper and Paper Products 6.13 Gross Revenue, Rebate and Net Revenue – 186 Boiler Components and Machinery 6.14 Average and Stability of Gross Revenue, 187 Rebate and Net Revenue – Boiler Components and Machinery 6.15 Trend and Growth of Gross Revenue, Rebate 188 and Net Revenue – Boiler Components and Machinery 6.16 Gross Revenue, Rebate and Net Revenue – 189 Sugar 6.17 Average and Stability of Gross Revenue, 190 Rebate and Net Revenue – Sugar 6.18 Trend and Growth of Gross Revenue, Rebate 191 and Net Revenue – Sugar 6.19 Gross Revenue, Rebate and Net Revenue – 193 Iron and Steel 6.20 Average and Stability of Gross Revenue, 194 Rebate and Net Revenue – Iron and Steel 6.21 Trend and Growth of Gross Revenue, Rebate 195 and Net Revenue – Iron and Steel 6.22 Gross Revenue, Rebate and Net Revenue – 196 Cigarettes and Chewing Tobacco TABLE NO. TITLE PAGE NO. 6.23 Average and Stability of Gross Revenue, 197 Rebate and Net Revenue – Cigarettes and Chewing Tobacco 6.24 Trend and Growth of Gross Revenue, Rebate 198 and Net Revenue – Cigarettes and Chewing Tobacco 6.25 Gross Revenue, Rebate and Net Revenue – 200 Articles of Iron & Steel 6.26 Average and Stability of Gross Revenue, 201 Rebate and Net Revenue – Articles of Iron & Steel 6.27 Trend and Growth of Gross Revenue, Rebate 202 and Net Revenue – Articles of Iron & Steel 6.28 Gross Revenue, Rebate and Net Revenue – 203 Parts of Motor Vehicles 6.29 Average and Stability of Gross Revenue, 204 Rebate and Net Revenue – Parts of Motor Vehicles 6.30 Trend and Growth of Gross Revenue, Rebate 205 and Net Revenue – Parts of Motor Vehicles 6.31 Company-wise Revenue Realisation through 208 Personal Ledger Account (PLA)