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									CENTRAL EXCISE




by
g. natarajan, advocate
swamy associates
                    MANUFACTURE

 Section 2 (f).

 Deemed Manufacture.
    Chapter 72 – galvanization.
    Chapter 26 – conversion of ores into concentrates.


 Third Schedule.
which, in relation to the goods specified in the Third Schedule,
involves packing or repacking of such goods in a unit container or
labelling or re-labelling of containers including the declaration or
alteration of retail sale price on it or adoption of any other treatment
on the goods to render the product marketable to the consumer.
                  MANUFACTURE
 UOI Vs Delhi Cloth & General Mills
  1977 (1) ELT J 199 SC.
       ED is on manufacture and not on sale.
      Goods much be something, which can be bought and sold.
     “Manufacture implies a change, but every change is not manufacture and
      yet every change of an article is the result of treatment, labour and
     manipulation. But something more is necessary and there must be
     transformation; a new and different article must emerge having a distinctive
     name, character or use.”


 37 B Order No. 58/1/2002 Dt. 15.01.2002.
                    MANUFACTURE

 Ammonia Supply Co Vs CCE
  2001 (131) ELT 626 Tri
      Repacking from bulk to retail – tanker to cylinder
      is not manufacture. ”


 Conybio Healthcare Vs CCE.
   2007 (216) ELT 586 Tri.
     Labeling / relabeling and repacking.


 CCE Vs Rajpurohit – 2008 (231) ELT 577 SC.
  CCE Vs S.R. Tissues – 2005 (186) ELT 385 SC.
      Cutting and Slitting – Not manufacture.
                                      VALUATION

 Section 4 – Transaction Value.
- in a case where the goods are sold by the assessee, for delivery at the time and
place of the removal, the assessee and the buyer of the goods are not related and
the price is the sole consideration for the sale, be the transaction value.

“transaction value” means the price actually paid or payable for the goods, when sold,
and includes in addition to the amount charged as price, any amount that the buyer
 is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale,
whether payable at the time of the sale or at any other time, including, but not limited to,
any amount charged for, or to make provision for, advertising or publicity, marketing and
selling organization expenses, storage, outward handling, servicing, warranty,
commission or any other matter; but does not include the amount of duty of excise,
sales tax and other taxes, if any, actually paid or actually payable on such goods.
          VALUATION RULES


 Rule 4 : Comparable Price.
    Story of Physician Samples.
 Rule 5 : Freight & Insurance.
    Baroda Electric Meters – 1997 (94) ELT 13 SC.
 Rule 6 : Additional Consideration.
            (Amortisation)
 Rule 7 : Depot Clearances.
 Rule 8 : Captive consumption.
 Rule 9 : Related Persons.
 Rule 10 : Interconnected undertakings.
 Rule 10 A : Job work.
 Rule 11 : Best Judgement.
                          VALUATION


 UOI Vs Bombay Tyre International
  1984 (17) ELT 329 SC
    Discounts to be excluded.


 Koya & Co Industries (P) Ltd Vs CCE.
  2007 (213) ELT 691
   Pipes sold to to related person – further used in laying –
   Value should be cost plus 10 % - Rule 11, 9 and 8.
             SECTION 4 A


 Notified commodities.
 Requirement of MRP under Legal
  Metrology Act.
 Prescribed abatements.
 Industrial / Institutional Consumer.
 Multi-piece package / Combination package
  Wholesale package.
 The ITC Story.
             JOB WORK


 Who is the manufacturer?
  KSEB Vs CCE – 1992 (62) ELT A 52 SC.

 Notification 214/86.
 Notifications 83 & 84/94.
 Rule 4 (5) (a) of CCR, 2004.
 Ujagar Prints Case.
 Rule 10 A of Valuation Rules.
   - If sold by principal.
   - If sold through depot.
   - If used in further manufacture.
 ADJUDICATION AND APPEAL
 Normal period Vs Extended Period.
 Time limit for adjudication.
 Penalties, Interest and Confiscation.
 Search and Seizure.
 Summons and Statement.
 Arrest and Prosecution.
 Recovery measures.
 Provisional attachment.
 Appellate remedies.
 Pre deposit.
 Settlement Commission.
 Compounding Scheme.
    LARGEST TAX PAYER UNIT


   Eligibility.
   Transfer of inputs.
   Transferred of manufactured goods.
   Transfer of credit.
              EXEMPTIONS

 End use based exemptions.
  Eg. Supplies to defence / SEZ.


 Small scale exemption.
  Upto Rs.1.5 Crores – Previous year less than Rs.4 crores.
  Others brand – No exemption (rural area).
  No cenvat credit.


 Area based exemption.
  (Refund mode / Exemption mode)
          MISCELLENEOUS
 Self Assessment / Provisional assessment.
 Due date for payment of duty and
   consequences for failure.
   Godrej Hershey Limited Vs CCE.
 Refunds.
 Exports
    - without payment of duty.
    - under claim for rebate.
 ER1 to ER 7.
 Supplementary Invoices.
 Section 11D.
 Return of goods.
 Remission of duty.
Thank you
mail@swamyassociates.com

								
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