Indirect Tax Laws - November 2015 MTP

(a) A SSI unit has effected clearances of goods of the value of Rs. 475 lacs during the financial year 2013-14. The said clearances include the following: (i) Clearance of excisable goods without payment of excise duty Rs. 120 lacs to a 100% EOU (ii) Job work in terms of Notification No. 214/86 CE, which is Rs. 75 lacs exempt from duty (iii) Export to Nepal and Bhutan Rs. 50 lacs (iv) Goods manufactured in rural area with the brand…

(a) Compute the assessable value of the goods manufactured by Shivam Enterprises, under section 4 of the Central Excise Act, 1944, with the help of the following particulars:Particulars Contracted sale price for delivery at buyer’s premises The contracted sale price includes the following elements of cost:(i) Cost of containers supplied by the buyer (iii) Loading and handling charges incurred after removal from the factory (iii) Dharmada charges Note: Sale is completed at factory’s premises. Amount (Rs.) 2,42,000 15,200 6,000 2,100…

(a) The assessee is engaged in the manufacture of various types of packaging machines. The machines are made to order according to the specification of individual customers and such machines, before dispatch, are to be tested at the manufacturer’s premises for the customer’s satisfaction. After the satisfaction of the customer, the assessee makes the entry in the RG-1 register (DSA) declaring the machine as manufactured and ready for clearance. For testing the machine, assessee procures certain excisable goods and avails…

(a) “Belated filing of returns/ Annual Financial Information Statement/ Annual Installed Capacity Statement does not attract any late fee.” Discuss the validity of the statement. (4 Marks) (b) Determine the applicability of service tax in each of the following independent cases: (i) Construction, erection, commissioning or installation of original works pertaining to an airport. (ii) Services provided by way of admission to a national park (iii) The ambulance services provided by an entity which is not a clinical establishment or…

(a) Describe the power of a Central Excise Officer to summon persons under the Central Excise Act. (4 Marks) (b) Mention briefly the specific exclusions from the definition of the term 'service' as provided in section 65B (44) of the Finance Act, 1994. (8 Marks) (c) Briefly explain the provisions relating to creation of first charge on the property of the assessee, as provided under section 142A of the Customs Act, 1962. (4 Marks)

(a) Under what circumstances it may be beneficial to pay duty and claim rebate under rule 18 of Central Excise Rules, 2002. (4 Marks) With reference to the Central Excise Act, 1944 and the rules made thereunder, write a brief note on the circumstances when personal penalty could be imposed on a director of a company or a partner of a firm or an employee or a transporter. (4 Marks) (b) Furious Constructions Ltd. is engaged in providing the services…

(a) What are the orders that are appealable to Supreme Court under the Central Excise Act, 1944? (4 Marks) (b) (i) Mr. Bhola, located in taxable territory receives taxable services provided from a U.K. based company located in non-taxable territory. Examine whether Mr. Bhola is liable to get registered under service tax. (4 Marks) (ii) Discuss the power to search premises under section 82 of the Finance Act, 1994. (4 Marks) (c) What is the objective of Merchandise Exports from…