Is it Correct???????????
Q. The goods manufactured by B& Co. were chargeabe to excise duty @ 10%. From 1-3-2011 additional excise duty @ 8% was imposed on such goods. On 4-3-2011, B & Co removed goods valuing Rs. 200000 out of lot manufactured prior to 1-3-2011. Compute the amount of excise duty payable on such removal?
Ans: The goods manufactured by B& Co. were not liable to additional excise duty prior to 1-3-2011 but were made subject to such additonal duty w.e.f. 1-3-2011. Hence no additional duty can be charged on the goods manufactured prior to 1-3-2011 even if they are removed on or after 1-3-11.
According to my opinion rate of excise duty shall be levied at such which is prevalent on the date of removal of goods. Hence such goods should be subjected to additional excise duty.
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