At the time of manufacture goods were excisable (chargeable to duty) but at the time of removal, goods becomes non excisable i.e removed from CETA . Whetehr duty will b payable and if yes what will b the rate of duty ??
niket banka (CA) (66 Points)
26 August 2010At the time of manufacture goods were excisable (chargeable to duty) but at the time of removal, goods becomes non excisable i.e removed from CETA . Whetehr duty will b payable and if yes what will b the rate of duty ??
Arvind Sharma
(ACA)
(1432 Points)
Replied 26 August 2010
yes..........,
duty shall be payable at the rate prevailing just before such amendment...
e.g. Product X, at the time of manufacturing, there was a rate 16% in CETA, and at the time of removal, CETA was amended (suppose on 30-7-2010) and X was withdrawn from CETA (or have " - ")., before such amendment, the rate was
1.12% (this is after taking effect of EN) on 25-7-2010
2. 15% (this is before taking effect of EN) on 25-7-2010
3. 14% (this is after taking effect of EN) on 15-7-2010
then Product X will be excisable at the rate 12%
there is a case law in support of my ans but I am not remembering the same.... but my ans is 100% is correct....
niket banka
(CA)
(66 Points)
Replied 26 August 2010
thanx buddy, i was also thinking of the same but there was no clear ans to this in any of the material. Neways pls let me know the case law if u come to know....
sudhakar ca cwa
(service)
(1518 Points)
Replied 26 August 2010
hi nikit
the basis for excisable goods or not is based on date of manfacture
and basis for rate of excise duty is based on date of removal
in my opinion the goods attracts nill rate of duty. (read the bold items)
Arvind Sharma
(ACA)
(1432 Points)
Replied 26 August 2010
you have no need to learn that case law, as institute ask only latest case laws...,
so remember that concept only, for practical qus,
However, I will reply the case law tomorrow....
Arvind Sharma
(ACA)
(1432 Points)
Replied 26 August 2010
Dear Sudhakar
You are right, that ROD is taken which prevails at the TOR,
however in the given case, you can not charge at Nil Rate (even as per you reason also) because there is no rate at the time of removal,
And If we make purposive construction, that is, the purpose of Excise Act, is to levy and collect duties at the rate mentioned in CETA, now, if once after occurrence of excisable event, if there is no rate at the time of removal then just preceding rate shall be taken...
Arvind Sharma
(ACA)
(1432 Points)
Replied 27 August 2010
the case is
"CCE v. Vazir Sultan Tobacco Co. Ltd. (1996) 83 ELT 3 (SC)"
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