Hi
Can someone please help with the case name after and due to which cigarettes are not self assessed for excise ?
Thanks
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 18 January 2010
cigarattes are removed after Self Assessment by Inspector unlike other goods. I think this stringent act would have been done after ITC'SCase since the company colluded with retailers and sold at a price more than the MRP i.e more than the price printed on the cigaratte packets
Chitrank Jain
(Senior Manager - Group Internal Audit)
(146 Points)
Replied 18 January 2010
I think that self assessment is not allowed in case of cigarettes because Centrasl Govt. gets a major chunk of its excise revenues from cigarettes.(On each pack of 10 cigarettes C.G. gets roughly Rs. 2-3 as excise duty). So to maintain control separate inspector is appointed.
@ sivaram, as far as non-availabilty of self assessment procedure is concerned, ITC's case is irrelevant, because excise duty on cigarettes is levied on the basis of quantity removed, regardless of the assessable value.
Relevant extract from Central Excise Tariff Act, 1985
https://www.cbec.gov.in/excise/cx-tariff0910/chap24.pdf
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 18 January 2010
thanks Mr Chitrank jain for your reply
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 19 January 2010
Rule 6 of the Central Excise Rule 2002, prohibits self assessment in case of cigarettes and due to this statutory bar cigarette is not self assessed.
Ankit
(Learner)
(25 Points)
Replied 23 January 2010
Hi
Thanks a lot for the replies.
I wanted to study the case law after and due to which cigarettes are not self assessed.
As far as I know there was some company which managed to evade excise for 17 years.
Do not know the name though.
Any help with the case please ?
Thanks
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961