Category: Excise

Demands and Penalties

• If duty is short paid or not paid or erroneously refunded, show cause notice can be issued u/s 11A(1) of CEA within one year from ‘relevant date’. • In case of allegation of suppression of facts, willful misstatement, fraud or collusion, the show cause notice can be issued within five years. • Show cause

Other procedure in Central Excise

Some procedures are basic, which every assessee is required to follow. Besides, some procedures are required to be followed as and when required. Basic Procedures (1) Every person who produces or manufactures excisable goods, is required to get registered, unless exempted. [Rule 9 of Central Excise Rules]. If there is any change in information supplied

Excise on small scale industries

Small Scale Industries The contribution of Small Scale Sector in the industrial growth of the Indian economy and to the Gross Domestic Product is significant, besides the potential for employment generation. Keeping this into consideration, special provisions of Central Excise are applicable to small-scale units. Exemption to SSI • SSI are eligible for exemption from

Assessment under Central Excise Law

The expressions ‘assessment’ and ‘assessee’ have been defined in the Central Excise Rules, 2002. Assessment, as per Rule 2(b), includes self-assessment of duty made by the assessee and provisional assessment under Rule 7 of the said Rules Assessee, as per Rule 2(c), means any person, who is liable for payment of duty assessed or a

MRP based valuation

Same product partly sold in retail and partly in wholesale – CBE&C has further clarified in circular No. 737/ 53/2003-CX dated 19-8-2003 that when goods covered u/s 4A are supplied in bulk to large buyer (and not in retail), valuation is required to be done u/s 4. Provisions of section 4A apply only where manufacturer

Valuation in case of Job work – Rule 10A

MEANING OF JOB WORKER Job-worker means a person engaged in the manufacture or production of goods on behalf of a principal manufacturer, from any inputs or goods supplied by the said principal manufacturer or by any other person authorised by him. According to Rule 10A, the value of goods manufactured on job work shall be

Valuation rules to determine assessable value

As per Section 4(1)(b) of the Central Excise Act, if ‘Assessable Value’ cannot be determined u/s 4(1)(a), it shall be determined in such manner as may be prescribed by rules. Under these powers, Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 have been made effective from 1-7-2000. In Ispat Industries Ltd. v

Value based on Retail Sale Price (MRP)

Section 4A of CEA empowers Central Government to specify goods on which duty will be payable based on ‘retail sale price’. The provisions for valuation on MRP basis are as follows : (a) The goods should be covered under provisions of Standards of Weights and Measures Act or Rules [section 4A(1)]. (b) Central Government has

Transaction Value under the Central Excise Act

For applicability of transaction value in a given case, for assessment purposes, certain essential requirements should be satisfied. If anyone of the said requirements is not satisfied, then the transaction value shall not be the assessable value and value in such case has to be arrived at under the valuation rules notified for the purpose.