13 February 2011
Modes of calculation of excise duty Duty can be payable on basis of specific duty (based on weight, length, volume etc.), MRP based duty [section 4A], compounded levy, tariff value [section 3(2)], production capacity [section 3A] or on ad valorem basis [section 4].
13 February 2011
Duty based on production capacity
Section 3A of CEA provides for payment of duty on basis of production capacity, without any reference to actual production. Production capacity will be determined as per Rules. Pan masala and gutkha are covered under these provisions.
13 February 2011
Inter-changeability of credit of various duties Credit of Basic excise duty, CVD, Special CVD and service tax can be utilised for payment of any duty on final product or service tax on output services, except duty payable u/s 85 of Finance Act on pan masala and certain tobacco products [provisos to Rule 3(4) of Cenvat Credit Rules]
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