| 1. |
Answer any ten of the following, giving brief reasons not exceeding 3 to 4 sentences. |
2x10=20 |
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(a) |
Assessee manufacturing cement had mines 20 kms. away from factory. He was using explosives in mines. Use of explosives is necessary for manufacture of his final product i.e. cement. Can he avail Cenvat credit of duty paid on the explosives? |
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(b) |
An exemption notification stated that the exemption is available only. If manufacturer uses inputs on which appropriate duty has already been paid. The inputs were exempt from duty. Assessee claimed that Nil duty is also a duty and hence he is entitled to exemption, as he has paid required duty. Is he entitled to exemption? |
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(c) |
An assessee was under impression that his product is exempt from excise duty and hence sold the goods @ Rs. 100 per piece without charging excise duty. Later, it was found that actually, the product was dutiable @ 16%. Department claimed that since goods were removed without duty, assessable value should be Rs. 100 and duty is payable accordingly. Assessee contended that price of Rs. 100 should be taken as cum duty price and actual duty payable should be calculated by back calculations. Determine the correct duty payable per piece. |
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(d) |
State correct or wrong.
| (i) | Settlement Commission cannot entertain cases pending with the Appellate Tribunal or any Court; |
| (ii) | Settlement Commission cannot entertain application involving classification of excisable goods; |
| (iii) | No CST is payable if goods are supplied an EOU unit; |
| (iv) | Countervailing duty is payable on safeguard duty also. |
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(e) |
A manufacturer purchased inputs from supplier 'ABC Co.' The invoice was for Rs. 11,000, comprising of price of goods as Rs. 10,000 and Rs. 1,000 as excise duty, which is available as Cenvat Credit to the manufacturer. Pass Journal entry for the purchase of goods. |
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(f) |
State whether following are includible in value for purpose of levy of Customs duty.
| (i) | Technical know how related to imported machinery; |
| (ii) | Erection charges for erecting machinery in India; |
| (iii) | Special introductory high discount offered to new buyer in India by foreign supplier. |
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(g) |
Siddhu has to pay Rs. 22,500 as an advance tax on September 15, 2002 for A.Y. 2003-2004. He actually paid the amount on September 30, 2002. He is liable to pay interest for delay for
| (i) | Half month; | (ii) | One month; | (iii) | Three months; | (iv) | None of these. |
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(h) |
No tax is to be deducted at source from interest on debentures if
| (i) | Debentures are issued by a company in which the public are substantially interested; |
| (ii) | Debentures are listed in a recognised Stock Exchange in India; |
| (iii) | Interest is paid by an account payee cheque; |
| (iv) | The aggregate amount of interest paid does not exceed Rs. 2,500; |
| (v) | All of the above. |
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(i) |
The relevant form in which declaration of non taxable total income is to be furnished by the individual (not being a senior citizen) in the case of interest other than interest on securities is |
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| (i) | Form No. 15H; | (ii) | Form No 15F; |
| (iii) | Form No. 15G; | (iv) | Form No. 13. |
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(j) |
Deduction under section 80D of income Tax Act is applicable to
| (i) | Only individual; | (ii) | Only HUF; |
| (iii) | Only individual and HUF; | (iv) | All assessees. |
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(k) |
Assessee has claimed Rs. 70,000 under section 10(10AA) in the year 2000-01. What is the maximum amount available if at all to be claimed in the AY 2003-04?
| (i) | Rs. 2,50,000; | (ii) | Rs. 2,30,000; |
| (iii) | Rs. 1,80,000; | (iv) | None of these. |
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| 2. |
(a) |
Explain the meaning of 'normal value', 'margin of dumping' and 'injury margin'. How would you determine 'normal value' in case of Import from non-market economy countries? What are the restrictions on levy of dumping duty in respect of Imports from WTO countries? |
10 |
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(b) |
State the conditions for accepting 'transaction value' as 'assessable vlaue' for purpose of Valuation under Central Excise. |
6 |
| 3. |
(a) |
An assessee availed Cenvat credit of duty paid on all the inputs. His clearances comprised of following:-
| (i) | Part of his final products was exported directly without payment of excise duty. |
| (ii) | Part of his final products was sold to another manufacturer. The manufacturer used them in his manufacture and then exported his final product. The goods were cleared under bond without payment of duty. |
| (iii) | Some of the inputs were used in manufacture of final products which were exempt from duty. Assessee has not maintained separate account of inputs used in such exempted final products. |
| (iv) | Balance quantity of his final products was used for home consumption on payment of excise duty at normal rates. |
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8 |
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Discuss provisions in respect of Cenvat credit which he had availed on inputs used in final products which were exported. |
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