CA Final :: Indirect Taxes : May 2005

What are the situations where transaction value under Section 4 of the Central Excise Act does not apply.

A trader supplies fabrics to independent processor. Cost of fabrics is Rs. 1,150. The processor charges Rs. 450 which includes Rs. 350 as processing charges and Rs. 100 as his profit. After processing goods are sent back to the trader. Who sells them at Rs. 1,800. Transport charges for receiving goods at the premises of the processor is Rs. 50 and the transport charges for sending goods after processing is Rs. 60.

Before 1.3.2003, light diesel oil was one of the input as per the definition of input given in Cenvat Credit Rules. M/s. Rim purchased duty paid light diesel oil in January, 2003 and availed of Cenvat Credit. On 4.1.2003, when input definition was amended to exclude LDO, department asked the Company Rim to reverse the amount of Cenvat Credit in respect of the stock of LDO with them as on 1.3.2003.

Explain briefly with reference to the provisions of the Central Excise Act the term "Deemed Manufacture".

Discuss the provisions of the Central Excise Act relating to collection of amount by a person from his buyer in Excess of the Duty assessed or determined and paid on any excisable goods.

When a person shall be deemed to be related person for the purpose of valuation under the Central Excise Act.

Is there any exception to the Rule that Central Excise Duty is payable by a producer or manufacturer of goods on removal thereof from the factory and duty is payable by someone else?

M/s. SYL purchase film from the manufacturer thereof on payment of appropriate Central Excise Duty. They undertake the processes of Lamination/metallisation of the said film. The department directs them to pay Central Excise Duty as the processes undertaken by them amounts to manufacturer.

Mention briefly the provisions regarding export under bond to Nepal where payment of duty is in freely convertible currency.

Deputy Commissioner Central Excise passes an adjudication order classifying the goods manufactured by MTZ under heading 85.42 and charges duty @ 16% Ad. Valorem. MTZ pays the duty without challenging the adjudication order. After 4 months they realise that partial exemption under a notification was available to goods manufactured by them. They file a claim for refund of duty paid in excess on the ground that benefit of exemption can be claimed at any time.

Are MTZ entitled to the refund of duty claimed in time.

In what circumstances additional evidence can be produced by an appellant before the Commissioner appeals (Central Excise)?

M/s. RKR Manufacture Footwear bearing the brand name "Lotus" which is owned by M/s. Lotus Industries Ltd. for manufacture of detergent powder. When the department disallowed the benefit of Small Scale exemption under Notification No. 9/2003-C.E. on the ground that their goods are bearing brand name of another person, M/s. R.K.R. Contended that M/s. Lotus Industries Ltd. owns brand name 'Lotus' only for detergent powder and not for footwear.

Find the valuation of the material for the purpose of Levying duty.

Discuss the provisions regarding "Transit of Goods' and "Transhipment of goods' without payment of duty under the Customs Act.

State the circumstances under which a revision petition can be filed before the Central Government under the Customs Act.

When the ship on its arrival from Dubai was searched by the Customs Officer, they found 2,000 biscuits of Gold kept concealed in the ceiling of one of the unoccupied Cabin. The Chief cook of the ship admitted the concealing of the Gold. The Captain of the ship deposed in his statement that he along with Chief Engineer and Chief Officer had inspected the vessel for contraband and inspection did not reveal anything. No Evidence was also found that captain was involved in the smuggling of Gold.