| 1. | (a) | Briefly explain any two of the following with reference to the provisions of Central Excise Act, 1944: | 2x2=4 | |
| | | (i) | Wholesale dealer | | (0) |
| | | (ii) | Factory | | (0) |
| | | (iii) | Dutiability of waste and scrap | | (0) |
| | (b) | With reference to CENVAT Credit Rules, 2004, discuss giving reason whether the following statements are true or false: | 3x2=6 | |
| | | (i) | Credit of duties of excise on inputs will not be available if inputs are used in intermediate product, which is exempt from duty, even though the final product is dutiable. | | (0) |
| | | (ii) | A manufacturer can sell the inputs on which CENVAT credit has already been availed of, as they are, provided he pays the amount equal to the credit availed. | | (0) |
| | | (iii) | A manufacturer is eligible for CENVAT credit in the cases stated below: | | |
| | | | (1) | Inputs used in trial runs; | | (0) |
| | | | (2) | Materials used for maintaining factory building. | | (0) |
| | (c) | With reference to the Central Excise Act, 1944 and the rules thereunder, explain briefly whether the following persons require registration or not? | 3x2=6 | |
| | | (i) | Persons, who manufacture excisable goods chargeable to ‘nil’ rate of duty; | | (0) |
| | | (ii) | Central Government undertakings manufacturing excisable goods; | | (0) |
| | | (iii) | 100% EOU. | | (0) |
| | (d) | ABC Company imported medicines in pallets with one big box containing assorted medicines in smaller units which were, then, repacked in thermocole boxes of different sizes which again were put into cardboard boxes. The cardboard boxes were in turn labelled containing, interalia, the name of the medicine, the name of the manufacturer, the quantity, batch no., manufacturing date, expiry date and name of the marketing agency. The department relying upon note 5 to chapter 30, claimed that the activities as aforesaid amount to manufacture i.e., bulk pack to retail pack. Decide whether the above activities tantamount to manufacture. | 4 | (0) |
| 2. | (a) | The assessee was a manufacturer of I.C. engine parts like piston and gudgeon pins. He used to procure from the market piston rings and circlips and supply them along with the items that he had manufactured, to the buyers. He was also selling these procured items separately. The department contended that those bought–out items, supplied along with the manufactured items, were part of piston assembly and therefore, their value should be included in the value of the piston assemblies cleared by the manufacturer. But the assessee contended that the piston rings and circlips were all different parts of I.C. engine and therefore they were not to be considered as parts of another item. Decide whether the contention of the department is correct or not. | 6 | (0) |
| | (b) | Explain whether an application from an NRI for advance ruling under section 23C, regarding determination of whether a certain process would amount to manufacture, is maintainable? | 5 | (0) |
| | (c) | State the procedure for valuing excisable goods that are to be sold from depot/branch or premises of a consignment agent under the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. | 5 | (0) |
| 3. | (a) | Explain the provisions regarding maintenance of daily stock account of stored goods under rule 10(1) of Central Excise Rules, 2002. | 4 | (0) |
| | (b) | Write a short note on the procedure in respect of exported goods subsequently reimported and returned to factory. | 5 | (0) |
| | (c) | Comment on the following: | 4x1=4 | |
| | | (i) | Excise department cannot challenge the reasonability of MRP printed on the package. | | (0) |
| | | (ii) | If any excisable goods are exempted from duty of excise absolutely, the manufacturer of such goods will be bound to avail of the exemption. | | (0) |
| | | (iii) | SSI units whose turnover exceeds Rupees 90 lakhs per annum have to give a declaration in the prescribed form. | | (0) |
| | | (iv) | Annual Financial Information Statement (ER–4) is required to be submitted by the assesses paying duty of Rs. 4 crores or above per annum through PLA. | | (0) |
| | (d) | What is CT–1 certificate? | 2 | (0) |
| 4. | (a) | A SSI unit has effected clearances of goods of the value of Rs. 475 lacs during the financial year 2005–06. The said clearances include the following: | (i) | Clearance of excisable goods without payment of excise duty to a 100% EOU | Rs.120 lacs | | (ii) | Job work in terms of Notification No. 214/86 CE, which is exempt from duty | Rs.75 lacs | | (iii) | Export to Nepal and Bhutan | Rs.50 lacs | | (iv) | Goods manufactured in rural area with the brand name of the others | Rs.90 lacs |
Examine with reference to the notification governing SSI under the Central Excise Act whether the benefit of exemption would be available to the unit for the financial year 2006–07. | 5 | (0) |
| | (b) | (i) | Whether provisional assessment can be initiated by the department of excise? | 2+3 | (0) |
| | | (ii) | What is the remedy available with the department in case assessing officer does not find the self assessment filed by the assessee in order? | | (0) |
| | (c) | State the provisions relating to confiscation and penalty under CENVAT Credit Rules, 2004. | 5 | (0) |
| 5. | (a) | Write a note on duty payment ‘Under protest’ with reference to the Central Excise Act, 1944 and the rules made thereunder. | 3 | (0) |
| | (b) | What are the orders that are appealable to Supreme Court under the Central Excise Act 1944? | 3 | (0) |
| | (c) | Explain briefly the provisions relating to ‘Special Audit’ in certain cases under section 14A of the Central Excise Act, 1944. | 5 | (0) |
| | (d) | What is Consumer Welfare Fund? How is this fund utilized? | 4 | (0) |
