AJAY SIMHA (CMA - final) (190 Points)
22 October 2010I have following query please help
finished goods were dutiable at the time of manufacture, but subsequently at the time removal such goods were removed from the list of CETA by amendment to CETA.
Now my question is - whether such goods are dutiable?? If yes at what rate??
reg
ajay
cwa - inter
Narayanan
(Chartered Accountant)
(189 Points)
Replied 22 October 2010
Excise is applicable as goods are excisable when it is manufactured (Wallace Flour Mills case)... at the rate as on the date of manufacture... but payment is on removal of these goods
vardan sharma
(Company secretary)
(160 Points)
Replied 23 October 2010
No goods are not dutibale becoz duty is levied at the time of removal an goods were not excisable at that time
Refer Rule 4 and 5 of C.E Rule and Wallace Flour Mills case
Anand
(Chartred Accountant)
(435 Points)
Replied 23 October 2010
Yup goods are not dutiable in this case.
AJAY SIMHA
(CMA - final)
(190 Points)
Replied 24 October 2010
as far my knowledge is concerned
taxable event is : manufacture so in present case the goods are dutiable
but for rates of duty : relevant rates in CETA on the date of removal in applicable. but in present case such goods are removed from CETA by amendment to CETA, so such goods are not dutiable as relevant rates are not available in CETA.
Pls clarify the same
reg
AJAY
CWA - INTER
CS Vijay Daxini
(At Practice)
(732 Points)
Replied 26 October 2010
dear ajay in central excise taxable event is manufacture but as per central excise rules2002, rule 4 says that duty is payable at the time of removal of goods from factory or warehouse , rule 5 says that relevant date for determining rate of duty aas well as tariff valuation will be the actual date of removal of goods from factory or warehouse....as u said on the date of removal goods are deleted from CETA by amendment so first of all at the time of removal of goods goods are not excisable bcoz it is deleted from CETA (OF COURSE TAXABLE EVENT IS MANUFACTURE)secondly if the rate of duty is not available how u calculate the duty all in all in u r case duty is not payable as per rule 5 of central excise rule 2002
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 18 December 2010
if the manufacturer has availed input credit on inputs for manufacture then he has to reverse the same on clearence, as its removed from CETA, and zero rated / exempted goods does not qualify for input credit.
Vijay K. Agrawal
(Service)
(608 Points)
Replied 22 December 2010
Dear Friends
as per central ecxise act, central excise is duty levied on manufacture and collected at the time of removal as per prescribed rate in CETA.
when duty rate are not in CETA at the time of removal, no duty is payable.it is jus like that initially electricity was taxable and rate are prescribed under CETA. later on entry is there under chaper 27 of ceta but rate are removed.
As pointed out by Mr shrama, reversal of input credit is must else you have to pay duty @ 10% etc.as per central excise rules.
Trust Matter is clear.
Regards,
CAclubindia
