M. Com (Semester IV) (CBCS) Examination, 2017
TAXATION PAPER III
Day Date: Wednesday, 19-04-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
N.B. All question are compulsory
Figures to right indicate full marks
Q.1 Choose the correct alternative given in the bracket. 14
Which one of the following will form part of transaction value
Transportation charges from the place of removal to the place
of buyer,
Transportation charges from the place of factory to the place
of branch,
Transportation charges from the place of distributor to the
place buyer,
Transportation charges from the place buyer to any other
place.
mb
Levy of Central Excise Duty depends upon
Removal of goods from the place of removal,
Manufacture of goods in the factory,
Deemed manufacture of goods,
Removal goods for branch transfer
Cenvat Credit on capital goods can be claimed in the year in
which it is purchased
a)Up to 50% b)Up to 100% Up to 25% d)Up to 75%
Time limit for delivery of Import Manifest/Report in the case of
Vehicle is within hours after the arrival of vehicle at
customs station
24 48 12 None of the above
At the time of manufacture of product X attracts 14% Basic
Excise Duty. At the time of removal the rate of duty is 8%.
Which is the rate of duty that will attract for the product X
14%
11% (Average Zero (Because the has changed)
Person in-charge of a Vessel/aircraft entering India shall call
or land at
Any place in India Any coastal area
Customs Port or Airport only None of the above
Page 1 of 4
The difference between "transit of gods" and "trans-shipment
of goods" is
Conveyance changes Goods changes
Destination changes None of the above
Of the following who cannot the CENVAT credit?
Industrial Consumer Second stage Deale
Unregistered Dealer None of the above
What are the conditions to be fulfilled for valuation of goods
based on transaction value?
There should be sale of excisable goods
The goods sold should be for delivery at the time and place
of removal
The assessee and the buyer of the goods are not to be
related persons
The price should be the sole consideration for the sale.
to above
to above
10) CIF value includes expenses incurred upto reaching of goods
at destination
FOB value
FOB value COT
FOB value COT+ CIF
FOB value COT CIF Unloading charges incurred at
destination port.
11) 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 in the
Continental Shelf and Exclusive Economic Zone (E.E.Z) i.e.
up to 200 nautical miles in the sea.
12) 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
13) Non-dutiable goods are
Excisable goods but rate of duty o on such goods is nil
Excisable goods but are exempted from duty issue of
Notification
Excisable goods but either the rate of duty on such goods is
nil or such goods are exempted from duty by issue of
Notification
14) Custom duty is levied on
Imports of goods into India
Exports of goods out o India
Imports of goods in India or exports of goods out of India
Page 2 of 4
Q.2 Write short Notes on any three: 14
Warehousing under Customs
Concept of tariff value
CENVAT credit
Registration under Excise
Powers of Excise Authorities
Q.3 Determine the total amount of excise duty payable under Section 4 of
the Central Excise Act, 1944 from the following information.
14
Rs.
i. Piece of machinery excluding taxes and duties 82,50,000
ii. Installation and erection expenses 31,500
iii. Packing charges (primary and secondary) 17,250
iv. Design and engineering charges 3,000
v. Cost of material supplied by buyer free of charge 12,750
vi. Pre-delivery inspection charges 750
Other information
Cash discount on price of machinery was allowed as per
terms of contract since full payment was received before dispatch
of machinery.
Bought out accessories supplied along with machinery valued at
Rs. 9,000.
Central Excise duty rate 16% and educational cess as applicable.
Make suitable assumptions as are required and provide brief reasons.
OR
Q.3 XYZ Co. is engaged in the manufacture of water pipes. From the
following details for the month of May, 2015 compute the available
CENVAT credit under the CENVAT Credit Rules, 2004
Amount of CENAVT paid on purchases as details below
Rs.
Raw steel 22,00,000
Water pipe making machine 18,00,000
Spare parts for the above machine 7,50,000
Grease and oil 2,80,000
Office equipment 20,00,000
Diesel 12,00,00
Provide explanation for treatment o various items.
Q.4 Briefly explain the rules for determination of Tariff Headings under
Central Excise for Classification of Goods?
14
Briefly explain the rules of Territorial Waters of India.
Page 3 of 4
Q.5 Explain the methods of Valuation for Customs and describe the
method of Transaction Value in detail.
14
OR
From the following furnished to you, computer the custom duty
payable by the importer of the goods.
Rs.
Assessable value u/s 80,000
Rate of basis customs duty 10%
Rate of additional customs duty u/s (i.e.
CVD)
12%
Rate of additional customs duty under
section (i.e. CVD)

Ravindra imports a container of goods containing 50,000 pieces
with assessable value of Rs. 10,00,000 under section 14 of the
Customs Act, 1962.
On said product, rate of basic customs duty is 10% and rate excise
duty is 12% ad valorem. Similar product in India is assessable under
section 4A of the Central Excise Act, 1944, after allowing an
abatement of 40%.
MRP printed on the package at the time of import is Rs.40 per piece.
Calculate the countervailing duty under section 3 of the
Customs Tariff Act, 1975 payable on the imported goods.