M.Com. (Semester IV) (CBCS) Examination Oct/Nov-2017
TAXATION
Day Date: Monday, 17-11-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
Instructions: All questions are compulsory.
All question carry equal marks.
Q.1 Select the correct answer from multiple choice given 14
The Custom Act extends to
Whole of India except Jammu and Kashmir
Whole of India
Whole of India including the territorial water of India
CIF value includes expenses incurred up to reaching of goods at destination
FOB value
FOB value COT
FOB value COT +CIF
FOB value COT CIF Unloading charges incurred at destination port
The Central Excise Act extends to
The whole of India
The whole of India except Jammu and Kashmir
The whole of India as well as to designated areas in the Continental Shelf
and Exclusive Economic Zone (E.E.Z) i.e. up to 200 nautical miles in the
sea
Excisable goods means:
Goods specified in Central Excise Act, 1944
Goods specified in Central Tariff Act, 1985
Goods specified in the notifications issued by the CBEC
Custom duty is levied on
Imports of goods into India
Exports of goods out of India
Imports of goods in India or exports of goods out of India
None-dutiable goods are
Excisable goods but rate of duty on such goods is nil
Excisable goods but are exempted from duty by issue of Notification
Excisable goods but either the rate of duty on such goods is nil or such
goods are exempted form duty by issue of Notification
The rate of customs duty is given in
The Customs Act, 1962
The Customs Tariff Act, 1975
Customs Manual, 2001
For levy of customs duty, sea ports have been extended in include
Inland container depot
Container freight station
Inland container depot and Container fright station
Special CVD levied under Customs Act, section cannot exceed



10) As per entry 84, excise duty can be levied on:
All goods
All goods except alcoholic liquors for human consumption
All goods except alcoholic liquors for human consumption, opium, Indian
hemp, etc. but including medicinal and toilet preparations containing
alcohol or opium, Indian hemp, etc
11) Circulars issued by CBEC are binding on
Excise department
Excise department and the assessee
Excise department, the assessee or any court
12) central excise is attracted under section 3 of the Central Excise Act on
All goods whether movable or immovable
Goods which are movable
Goods which are movable and marketable
Goods which are movable and marketable and have been produced or
manufactured in India
13) Duty of Central Excise is collected at the time of
Manufacture or production of the goods
Time of removal of goods
Time of removal of goods from factory of warehouse
14) Waste and scrap generated in the course of manufacture are liable to duty if
Such waste and scrap is moveable
Such waste and scrap is moveable, it is marketable or deemed to be
marketable
Such waste and scrap is moveable, it is marketable or deemed to be
marketable and such waste and scrap is listed in the Central Excise Tariff
Act under the relevant section Chapter head
Q.2 Write short notes on any two from the following: 14
Registration under Central Excise Duty Act
CENVAT under Central Excise
Manufacture under Central Excise
Definition of Goods under Customs Act
Clearance of goods under Customs
Page 3 of 3
SLR-CJ-57
Q.3 Determine the tariff value and the amount of duty payable (including the
education cess) in the following cases:
14
SI.
No
Tariff value
of goods
on the
date of
manufacture
Date of
Manufacture
Rate of duty
on the date of
manufacture
Date of
removal
Tariff
value on
the date
of
removal
Rate of
duty on
the date
of removal
1 1,80,000 26-5-2015 14% 25.7.2015 2,40,000 12%
2 3,60,000 28-6-2015 10% 25.7.2015 3,30,000 14%
3 5,40,000 2-7-2015 14% 28.7.2015 6,00,000 14%
4 4,80,000 3-7-2015 Nil 29.7.2015 5,70,000 14%
5 4,20,000 4-7-2015 30.7.2015 4,65,000 14%
6 5,10,000 5-7-2015
Nil due to
exemption
notification
30.7.2015 6,00,000 14% as
exemption
is
withdrawn
OR
Q.3 Determine the transaction value and excise duty payable from the following
particulars:
Price of Machine "Z" is Rs. 20,00,000 (excluding taxes duties)
Installation and erection charges (Machine "Z" is fixed to the earth) is Rs.
1,00,000
Designing charges for machinery is Rs. 13,000
Charges for packing the machine is Rs. 9,000
Outward freight charges beyond place of removal is Rs. 20,000
Cash discount on price of machinery was allowed as the customer
paid the bill amount before dispatch.
Central Excise duty rate is 14%.
Q.4 Rohit imported some goods from Japan. The assessable value of the
imported goods is Rs. 51,00,000. Compute the customs duty payable from the
following additional information:
14
Date of entry inward 16.1.2014 (rate of basic custom duty is
Date of bill of entry 20.1.2014 (rate of basic custom duty is
Countervailing duty 12%
Special duty at maximum rate applicable.
Q.5 Explain the various types of duty under Customs Act with relevant provisions. 14
OR
Explain in detail the provisions of availability of CENVAT credit to manufacturer under Central Excise.