| 4. | (a) | Define ‘excisable goods’ and distinguish it from ‘exempted goods’. | 4 | (0) |
| | (b) | List down the items specifically included in the scope of the term ‘goods’ under the Customs Act, 1962, bringing out the effect of such inclusion. | 4 | (0) |
| | (c) | Subsequent sales during the movement of goods from one State to another pursuant to an inter–State sale, would always be exempt from tax. Do you agree ? Give reasons. | 4 | (0) |
| | (d) | What is the general rule regarding valuation of taxable service ? Indicate the position where the gross amount charged by a service provider includes service tax payable. | 3 | (0) |
| 5. | (a) | A big ship carrying merchandise and stores enters into the territorial waters of India, but it cannot enter the port. In order to unload the merchandise, smaller ships are employed. Stores are consumed on board the ship as well as by the smaller ships. | (i) | Examine whether such consumption of stores attracts customs duty. Cite relevant provisions and case law, if any. | | (ii) | Stores are further supplied to the above ships. Will such supplies be treated as export and be entitled to duty–drawback ? |
| 4 | (0) |
| | (b) | Ajay Ltd. supplied and installed air–conditioning equipment in the premises of Vijay Ltd. In the invoice raised by it, the value of the equipment was shown as Rs.5 lakh and installation and commission charges as Rs.1 lakh. What is the value of ‘taxable service’ on which service tax is payable ? Will it make any difference if the price of the equipment and installation charges are not separately shown in the invoice and a consolidated amount of Rs.6 lakh is shown ? | 4 | (0) |
| | (c) | Reliable Ltd. writes off the value of certain finished goods and inputs in its books of account as they have become obsolete. But, the goods are not removed from the factory premises. The department demands central excise duty on such goods. Whether the demand is justified ? | 4 | (0) |
| | (d) | Rozy reported sales turnover of Rs.45,20,000. This includes the following : | (i) | Excise duty Rs.3 lakh; and | | (ii) | Deposit for returnable containers and packages Rs.4 lakh. Sales tax was not included separately in the sales invoice.
Compute the tax liability of Rozy under the Central Sales Tax Act, 1956, assuming that sales have been made to registered dealers against Form–C and the rate of tax is 3% in the State. Goods sold are undeclared goods. |
| 3 | (0) |
| 6. | (a) | State, giving reasons in brief, whether the following statements are correct or incorrect : | 2each | |
| | | (i) | No central sales tax is payable if goods are supplied to an export oriented unit (EOU). | | (0) |
| | | (ii) | Lottery tickets are not ‘goods’ under the Central Sales Tax Act, 1956. | | (0) |
| | | (iii) | Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds Rs.3 lakh is required to apply for service tax registration. | | (0) |
| | (b) | A manufacturer of steel furniture sold the furniture without painting. After the furniture is sold, wherever necessary painting is done at the instance of buyers, as per their specifications either by the painters suggested by the manufacturer or other painters directly engaged by the buyers. Consider whether such painting would amount to ‘manufacture’. | 5 | (0) |
| | (c) | Jacob receives a machine in his factory. He utilises 50% of the duty paid thereon as CENVAT credit even before the erection of the machine. Can he do so ? | 2 | (0) |
| | (d) | Can an assessee use CENVAT credit for payment of interest, penalty and fine in lieu of confiscation ? | 2 | (0) |
| 7. | (a) | State, giving reasons in brief, whether the following statements are correct or incorrect : | 2each | |
| | | (i) | At present, education cess is payable @ 2% on the value of taxable services. | | (0) |
| | | (ii) | The invoice issued by a service provider should indicate the service tax charged separately. | | (0) |
| | | (iii) | Appeal against the order passed by the Commissioner of Central Excise (Appeals) relating to service tax can be filed before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) within three months from the date of receipt of the order. | | (0) |
| | | (iv) | An assessee availing exemption under the notification based on the value of clearances in a financial year has to file a monthly return of the production and removal of goods within 10 days of the month to which the return relates. | | (0) |
| | | (v) | In case of import of an article, additional duty of customs is not levied if no like article is produced or manufactured in India. | | (0) |
| | | (vi) | A dealer can furnish Form—C to the assessing authority upto the time of assessment. | | (0) |
| | (b) | Define ‘declared goods’ under the Central Sales Tax Act, 1956. What are the restrictions in regard to levying of tax on sale or purchase of declared goods within a State ? | 3 | (0) |
| 8. | (a) | What are the various reasons for which excisable goods can be confiscated and penalty is imposable on a manufacturer of excisable goods under the Central Excise Rules, 2002 ? | 5 | (0) |
| | (b) | What are the various orders passed by the Commissioner of Central Excise (Appeals) against which an appeal does not lie with the Customs Excise Service Tax Appellate Tribunal ? | 4 | (0) |
| | (c) | (i) | Who is authorised to appoint public warehouses under the Customs Act, 1962 ? | 1each | (0) |
| | | (ii) | What are the places where such warehouses can be appointed ? | | (0) |
| | | (iii) | What is the purpose for which such warehouses are appointed ? | | (0) |
| | (d) | In what cases refund of export duty is admissible under the Customs Act, 1962. | 3 | (0) |
