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Please clear these queries relating to excise

Saurabh Maheshwari (B.com,ACA) (5923 Points)

10 October 2012

Dear Forum members, pls solve my following queries relating to Central Excise:

Q-1 Why 1st stage and 2nd stage dealer are liable to pay duty though they are not engagged in manufacturing excisable goods?

Q-2Why the credit of additional duty of excise leviable u/s 3(5) of Customs Tariff Act is not allowed if the invoice bears an indication to the effect that no credit of the said additional duty shall be admissible?

Q-3 Persons who obtain excisable goods for availing end used based exemption notification are liable to register under Central Excise, what is ment by such persons?

Please support your answers with short examples if possible.

Thanks....

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1 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 October 2012

Originally posted by : Saurabh

Dear Forum members, pls solve my following queries relating to Central Excise:

Q-1 Why 1st stage and 2nd stage dealer are liable to pay duty though they are not engagged in manufacturing excisable goods?

Ans : Dealers has no liability to pay central excise, they are only authorized to pass on the duty paid at the point of manufacture, through cenvatable invoices issued against the invoice received from factory.

Q-2Why the credit of additional duty of excise leviable u/s 3(5) of Customs Tariff Act is not allowed if the invoice bears an indication to the effect that no credit of the said additional duty shall be admissible?

Ans : refer the BOE, at certain nature of goods, its resxtricted, generally additional duty under customs tariff act 3(5) is allowed for cenvat, if imported without any obligation or benefit of export entitlement.

Q-3 Persons who obtain excisable goods for availing end used based exemption notification are liable to register under Central Excise, what is ment by such persons?

Ans : here persons are referred as factory of manufacture/processor or any other identity who are availing benefit of procurement of inputs at concessional rate of excise/ without excise ( other then export purpose) as defined under the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001

Please support your answers with short examples if possible.

Thanks....