Documente Academic
Documente Profesional
Documente Cultură
CONTENTS
Chapter Page No.
2. Taxable Event
3. Valuation of Goods
4. Classification of Goods
8. Export Procedures
12. Refund
“Men give me credit for some genius. All the genius I have lies in this:
when I have a subject in my hand, I study it profoundly, day and night it is before me. My
mind becomes pervaded with it. Then the effort which I have made is what people are
pleased to call the fruit of genius. It is the fruit of labour and thought”
(ALEXANDER)
TAX HIERARCHY
Constitution Union List (List I)—Entry No 84
B.R. Ambedkar
Act Central Excise Act 1944 + Central Excise Tariff Act, 1985
Parliament
Regulations
CBEC
Division of Powers
Entry No 84: Duties of Excise on TOBACCO and OTHER GOODS produced or manufactured in India,
Except: Alcoholic Liquor For Human Consumption,
Opium,
Narcotics;
But including: MEDICINAL & TOILET PREPARATIONS containing alcoholic liquor, opium
or narcotics
Note 2: Act: Central Excise Act [Sec 1 to 40]
.
Sec 3 (Charging Section)
(Product) (Process) ( Place) BED - (10%)
Excisable + Production/ + India (Feb, 2010 onwards)
Goods Manufacture
SED - (10%)
Goods mentioned Process by which New Including J&K
in Schedule commodity comes into existence
[Sec 2(d)] [Sec 2(f)] [Sec 1]
Production/manuf
acture of EG
– No ED liability
Author’s Note:
SEZ (Special Economic Zone) refer to designated areas in countries that possess special economic regulations that are different from
other areas in the same country. [In India, SEZ are governed by SEZ Act, 2005].
Area other than SEZ is referred as ‘Domestic Tariff Area (DTA)’.
Territorial Waters, Continent Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 extends territory of India to 12
NM (Nautical Mile). It further provides that CG can extend applicability of any Act upto 200 NM (by issuance of Noficication in
Official Gazette)
EDUCATION CESS (EC)
Sec 91 of FA, 2004: Education Cess
There shall be levied and collected, in accordance with the provisions of this Chapter as
surcharge for purposes of the Union, a cess to be called the Education Cess, to fulfil the
commitment of the Government to provide and finance universalised quality basic education.
(2) EC on excisable goods shall be in addition to any other duties of excise chargeable on
such goods, under the Central Excise Act, 1944 or any other law for the time being in force.
(3) The provisions of the CEA, 1944 and the rules made thereunder, shall, as far as may be,
apply in relation to the levy and collection of the EC on excisable goods.
(2) SHEC on excisable goods shall be in addition to any other duties of excise chargeable on
such goods, under the Central Excise Act, 1944 or any other law for the time being in force
and the Education Cess chargeable under FA, 2004.
(3) The provisions of the CEA, 1944 and the rules made thereunder, shall, as far as may be,
apply in relation to the levy and collection of the SHEC on excisable goods.
Central Excise Tariff Act, 1985
8-Digit Coding System [Systematic Arrangement]
Sections: Textile & Textile Articles
Chapters: [Yarn] [Fabric] [Readymade Garments]
Ist IInd
Headings
Schedule Schedule
Silk Fabric
Cotton Fabric
Sub-Headings:
BED SED 100% Cotton
[All Excisable Goods] [Selected Ex Goods]
Mixed Cotton
Tariff-Item
Mixed with ―X‖
Mixed with ―others‖
Note 3: Rules:
Sec 37:
CG may make rules generally for the purposes of
carrying out the provisions of Central Excise Act, 1944.
For the Assessee: Circular is beneficial Whether Assessee can claim benefit? :--
For the Dept: Circular is prejudicial Whether Dept bound to follow circular? :--
Binding nature of CBEC Circular: CBEC Circulars are binding on the Department (CEO). The officers
are not allowed to take a stand contrary to those. If they pass any demand order contrary to the circular,
then such demand shall be liable to be held invalid. While striking down such demand, CEO shall not
be allowed even to argue on the merits of the case.
CASE-B: No Uniformity in classification of product – CBEC issuing Circular taking stand that HARPIC/ LIZOL should be
classifiable as ―Surface Cleaner’ (ED@16%)
For the Assessee: Circular is prejudicial Whether Assessee bound to follow circular? :--
For the Dept: Circular is beneficial Whether Dept bound to follow circular? :--
Binding nature of CBEC Circular: Sec 37-B binds CEO by the circulars but not the assessee. If the circular
appears to be beneficial to the assessee, assessee can claim that benefit. However, if assessee doesn’t find
the circular in his favour then assessee will be within his right to challenge that circular in appeals.
[Remember his appeal is admissible before CCE (Appeals) as CCE (Appeals) is not bound by the
circular and it can hear and decide case on merit (special exception provided in Sec 37-B) – infact,
none of the appellate authorities are bound by the circular – Appellate Authorities have full
discretion to decide the case excercising their own judgment]
CBDT CBEC
Chief CCE
C CCE CCE(Appeals)
E JC / Addl. Comm
O AC/DC
CESTAT
High Court
Supreme Court