MANOJ BATRA 1

Valuation Of which date- For cap. Cons- Rod of

EXCISE BASIC CONCEPT by Manoj Batra DOR R-5 date of issue
Duty Levied or Not------------------------ yes. Duty = Assessabl Effective ROD
e Value *
MOVABLE MARKETABLE MENTIONED MANUFACTURE Who will Pay- R- Sec 3(2)- CETA Tariff notification-
IN CETA 4 Tariff Classification
To remove at other Capable of With Ist Principle- 1. Manufacturer Value Rule- 1- Title of ROD increased- Sec 3
Place of use being bought Nil/ 12.5% Name, Use Test 2. WH keeper Sec 4A- chapter- for Ref. CETA 1985
Dismantling and sold ROD 3. Procurer of MRP- classific. with If earlier Nil- upto
necessary- - Sample/ Excisable Mollasses Abatemen relative sec and 50% adv
immovable Free- goods 4. In case of t chapter note Other than Nil- upto
No Dismantling- replacement, Blank Rated- IInd Principle job-work of Sec R- 2(a) Twice
Movable Cap. Cons Non- Deemed Ready made 4(1)(a)- incomplete Notific. Has to be
Single buyer Excisable Manufacture garments- TV goods having passed from
enough goods Brand owner Cond- character of Parliament.
Goods Assembled / - Perishable Certain issues Sale, complete If not in sitting- then
Manufd at Customer goods- if can (1) labelling- delivery at goods- classify present within 7 days
site- be sold during Not mfr. time and as complete of re-assembly
Movable- Duty that period But can be POR, goods If
Immovable-Duty deemed mfr u/s Buyer Unassembled- cancelled/modified-
2(f)(ii)/(iii) unrelated, CKD/SKD- Effective
Price- sole complete goods Prospectively.
Goods after Ordinary sale (2) Assembly- if cons. 2(b) goods ROD reduced- Sec 5
manufacturing or not - new Product having more CEA 1944
removed from deemed emerged- mfr. than 1 material- Full exemption
factory for marketable as per rule 3 Partial exemption
installation- As such (3) Waste & 4(1)b) 3(a)- specific Note- Absolute &
Movable scrap + over general 100% exempt- Follow
If arise during Valuation 3(b) Essential mandatory
mfring process- Rules character Special order can be
mfr 2000 3(c)- Later in issued for ind case
e.g- numerical order If explanation
Sample, 4- Akin Rule inserted within 1 year
job-work, 5- packing mat. from notifc.-
RP 6- sub heading applicable
retrospectively
MANOJ BATRA 2
CCR AVAIL (2 + 3 +4 +6 + 9) BY MANOJ BATRA
R-9 4(1) 4(2) 4(7) 2(a) 2(k) Rule 3
Documents For IP For CG For INPUT SERVICE
Domestic Pur Time of Time of Taking Time of taking credit CG IP- Means BED
Invoice of Taking CCR CCR within 1 yr CAPMRST( (A)All goods used in factory ( SED
Manufacturer /SP Immediately Immediately on Reverse charge- Full Wagons 860692 no CCR of storage loss but GSI
Invoice of IP/CG as on Receipt Receipt On Payment of S. Tax + CCR of processing loss T&TA
Reverse charge- Dumper /
such - in factory - in factory (B)Accessory/warranty NCCD
Partial
FSD/SSD Invoice - in premises - in premises of Tipper whose value incld in FP NCCD ON MP
S. Tax paid by S.
Supplementary of SP SP Manufacturer- (C)Goods used for ADE 03
Receiver- On Payment
invoice - in premise - in premise of of S. Tax use in Factory generation of electricity or ADE 05
Import of job- job-worker, in S. Tax mentioned in not in office Pumping of Water - cap. Use EC
Bill of Entry worker, in case goods sent Invoice on reciept of S. Provider (D)All goods used for SHEC
COAOC- Foreign case goods directly to job- invoice use for OS providing OS
Post/Approved sent directly worker Note if value & s. (E) CG upto value of Rs
Courier to job- Cond. Of 1 yr. Tax not paid with in 3 M. Vehicle 10000 per piece
Importer invoice worker not applicable. months , other than Not include ST
Supplementary then Pay Amt = CCR 8702/03/04/11 (i)LDO / HSD, Petrol(motor EC
invoice Amt mentioned in - CG for Mfrer spirit) SHEC
Input service Note- No YEAR-1 UPTO Invoice & SP (ii)Cap. Goods CVD
Invoice of ISP CCR of 50% ** if paid after 3 M (iii) *Any goods- const. mat SP. CVD
Invoice of ISD then take CCR Goods Vehicle- For Build/civil structure,
Transit Loss. YEAR-2-
Reverse charge- GAR- Other than Reverse 3 S provider
Note- SP can Bal. if CG in CG foundation, structure
7 challan charge- on Receipt of R T C
take CR on possession support
Supplementary invoice Invoice
delivery of No Possession Passenger (iv)Motor vehicle
STTG certificate if value & S. Tax not
goods, if Required of Vehicle- (v)Any goods for personal
No CCR on XEROX paid with in 3 months ,
documentary C,A,R,M, then Pay Amt = CCR 3 S provider use of employee
COPY of invoice R T I
evidence 6804/05 ** if paid after 3 M (vi)No relation with mfr.
FSD/SSD/Registered
maintained 100% CCR in 1st then take CCR
importer Input service Specified serv-
of delivery & year Amt of CCR in F.Y =
Record MEANS -Used for providing OS modernization, renovation,
-Supplied from duty location (1) SSI (2) SP. ST paid on
CVD (3) CG Used directly/indirectly or in or i.rt mfr repair, procurement,
paid stock assignment of right Qualtiy, Recruit, Adv sale
Note- CCR on removed as of Fp & Clearance upto POR promotion, marketing,
- Pro-rata duty to use/3
IP/IS Can be such Includes specified services storage, account, audit,
indicated in invoice Further assignment-
availed 4(3) CG on Inward trans., outward trans. Upto finance, computer
Quarterly return in CCR to the extent of networking, security, legal
within 1 year Lease/HP CCR ST payable allowed Place Of Removal
15 days serv
from date of taken Doesnt include
in same F.Y Note- Sale promotion
document of 4(4) either Note- Time Limit 1
** Const. ser , works contract service include service of sale of
Rule 9 take CCR or Dep year NA for assigment Personal use of employee dutiable goods on
of right to use Motor Vehicle- IRS- R (CCR allowed) commission basis
on duty of CG
Ins., repair, Servicing, Renting
MANOJ BATRA 3
Small Scale Industry

For jewellery Sector- if AVC for HC 15 crore, other assessee if AVC for HC 400 lakh ( 4 crore)

C Component, spare and accessory of (A, P)

A All goods ch- 82/84/85/90/6804/6805 , Wagons 860692
P Pollution control equipment
M Moulds and dies, jigs and fixtures
R Refractory and refractory material
S Storage tank
T Tube, pipe and fittings
Note- CG used outside the Factory of Manufacturer for generation of electricity or for Pumping of Water for captive use within the Factory- CCR allowed

R,T,I Renting of Motor vehicle, Transport of Passenger, imparting motor driving skills
R.T.C Renting of Motor vehicle, Transport of goods, courier agency

* only Construction Company/ Works Contractor can take CCR of Input ( construction material)

** if Construction company Sub- contracts construction service, then it can take credit of Service tax paid to sub-contractor.

Rule- 7 CCR of S. TAX can be distributed to Manufacturing Units OR S. provider units subject to conditions (1) CCR distributed doesnt exceed S. TAX PAID
thereon (2) PREMISE SERVICE USE only DISTRIBUTE (3) if input service used for all the units- CCR previous YEAR
Turnover ratio ALL Units c.year Operational distribute ( if P.Y Turnover is not available for
some or all units, then Previous Quarter Turnover ratio ) (4) if input service used for MORE THAN 1 UNIT BUT NOT all the units-
CCR previous YEAR Turnover ratio Units INPUT SERVICE USE AND c.year Operational distribute
(5) outsourced manufacturing unit shall maintain separate account for input service credit received from each of ISD (6) credit of ST on
input services, available with ISD, as on the 31/3/2016, shall not be transferred to any outsourced manufacturing unit and such credit shall be
distributed amongst the units excluding the outsourced manufacturing units (7) Rule 6 shall not apply to ISD

R- 7A- IP/CG Duty Distributed Pro-rata like FSD/SSD

RULE [7B. Distribution of credit on inputs by warehouse of manufacturer.- A manufacturer having more than 1 Factory can maintain
common WH. Common WH can distribute credit on IP received by it pro-rata like FSD/SSD.
MANOJ BATRA 4
REVERSAL OF CCR IN Following 4 Cases Non - REVERSAL OF CCR IN Following 6 cases by MANOJ BATRA
3(5) 3(5A) 3(5B) 3(5C) Proviso- 4(5) & (6) 8 10
3(5)
Removal of CG removed after IP/CG IF FP duty (1) IP/CG 1) GOODS SENT TO STORAGE OF If factory shifted
IP/CG AS use- second hand WRITTEN is ordered REMOVED JOB WORKER CCR IP OUTSIDE or ownership
SUCH CG OFF FULLY to be FOR REVERSE THE FACTORY transferred
OR remitted PROVIDING NATURE OF
NOTE- IP 180 INPUT OR CCR Bal lying
PARTIALLY under rule OUTPUT
21 of CER SERVICE DAYS/ CG 2 yrs SHORTAGE OF unutilized can be
transfd.
2002 (2) IP SPACE
Pay Amt = HIGHER Removed
pay pay amount Reverse CCR Conditions (1)
amount = OF 2 = CENVAT CCR on Outside For 2) 181 TH DAY/ Day
Providing after 2 years, IF NOT REVERSE TRANSFER of
CENVAT credit taken IP/IS liablities (2)
free RETURNED PAY AMT=
credit (1) Duty on TV Note- if IP REMOVE IP/CG also
warranty CCR related to the
taken IP/CG
portion of IP/CG Not transferred (3)
(2) Computer & its subsequently IP/CG are duly
Received back (BY
peripherals used in
DEBITING CCR OR PLA) accounted for.
exception- CCR manufacture
when CCR 10%/8%/5%/1%/1% of FP or 180 DAYS/ 2 years
Rule 12A
Not for each qtr or part Providing LTU Can Transfer CCR to its other
of qtr for 1st, 2nd,
Reversed Output CREDIT REAVAIL Factory without reversal of CCR.
3rd, 4th, 5th year service, then
respectively. Take Credit
Other than Again. JIGS,FIXTURE, MOULDS &
computer & its DIES can be sent directly
peripherals 2 years
Pay amt. = CCR

2.5% for each qtr.
Or part from date If goods sent directly to
of taking CCR. JOB WORKER 180 days/ 2
yrs counted from date of
CG CLEARED AS receipt by job worker.
waste & Scrap- Pay 4(6) after taking
amt = Duty on TV permission, Goods can be
sold from factory of job
worker order valid for 3
F.Y
MANOJ BATRA 5
Rule 6- If FP/OS is exempt No CCR of IP/IS/CG. Rule 6(6) -However CCR allowed even if FP is exempt in following cases, if FP
(i) Cleared to a unit in a special economic Zone or to a developer of a SEZ (ii) Cleared to a 100% EOU or (iii) Cleared to a unit in EHTP
or Software Technology parks (STP) or (iv) Supplied to the united nations(UN) or an international organization (iva) supplied for the
use of foreign diplomatic missions or consular missions or career consular offices or diplomatic agents (v) Cleared for
export under bond (vi) Gold or silver falling within Chapter 71 of the said First Schedule, arising in the course of manufacture of
copper or zinc by smelting. [(vii) all goods supplied, (a) against International Competitive Bidding; or (b) to a power project
from which power supply has been tied up through tariff based competitive bidding; or (c) to a power project awarded to a
developer through tariff based competitive bidding, (viii) supplies made for setting up of solar power generation projects or facilities.
(ix) Ethanol produced from molasses generated from cane crushed in the sugar season 2015-16 i.e. 1st October, 2015 onwards,
for supply to IOC/BPCL/HPCL for the purposes of blending with petrol.
REFUND IN FOLLOWING CASES OF CCR
5 5A 5B Refund in case of Partial Reverse Charge
(1) CCR ON IP/IS REFUND IF USED FOR FP/OS WHICH ARE Manufacturer cleared Partial Reverse charge applicable
goods availing area- If Sprovider is HAPI HUF/AOP/PF/IND
EXPORTED ON WHICH DUTY OR TAX NOT PAID
based exemption and S. Receiver is Body corporate
(2) BUT NO REFUND IF claimed
REBATE OF DUTY UNDER RULE 18 OF CER OR unable to utilize CCRof IP
CG may allow Refund For following services
REBATE OF S. TAX claimed (1) works contract
DUTY DRAWBACK (2) Renting of Motor Vehicle
(3) REFUND = EXPORT TO OF GOODS + EXPORT TO OF SERVICE * NET
CCR/TOTAL TURNOVER Refund of CCR of IP/IS
(4) NET CCR = [ CCR AVAILED ON IP& IS AMT REVERSED IN 3(5C) ]
(5) EXPORT TO OF GOODS = VALUE OF FP & INT. PRODUCT EXPORTED Refund amount will be LOWER OF 3
UNDER BOND OR LUT (i) Balance available as CCR
(6) EXPORT TO OF SERVICE = PAYMENT RECD DURING RELEVANT (ii) Amount as per formula of notification
PERIOD FOR EXPORT OF SERVICE + (iii) Service tax paid or payable by Recipient of
(7) EXPORT OF SERVICE WHOSE PROVISION COMPLETED BUT PAYMENT service
RECD IN PERIOD PRIOR TO RELEVANT PERIOD (-) ADVANCE RECD FOR WHICH Formula = A B
SERVICE NOT PROVIDED YET A = CCR taken on input * T.O of output service
(8) TOTAL TO = [VALUE OF EXPORT + DUTIABLE + EXEMPTED GOODS] under partial reverse charge during half year
and input service Total turnover of
+ [ VALUE OF EXPORT SERVICE ( as above) + OTHER SERVICE] (+) VALUE OF IP
goods and service during the half year
REMOVED AS SUCH
Note- Export means taking out of India to a place outside india. B = SERVICE TAX PAID BY SERVICE PROVIDER FOR
In case of Manufacturer- Application- before expiry of Period in sec 11B. SUCH PARTIAL REVERSE CHARGE SERVICES
In case of Export of Service Service Provider DURING THE HALF YEAR
Application for Refund within 1 year
- from date of issue of invoice (If Payment Received in Advance)
- From date of Receipt of Payment (If payment received after
completion of service)
 MANOJ BATRA 6

If CCR wrongly availed or utlised

Rule 14- Recovery of CCR wrongly taken or erroneously refunded Rule 15 confiscation and penalty
Recovery of CCR alongwith interest @ 18% p.a (15% p.a w.e.f-1-4-2016) PENALTY 11AC
(1) CCR wrongly taken but not utilised OTHER THAN FRAUD Fraud Additional Penalty
- CCR recovered from Manufacturer/ S. Provider u/s 11A of CEA Confiscation 11AC(1)(c)
1944, 73 of FA 1994 And Penalty = 100% of duty
(2) CCR taken and utilised wrongly (10% of Duty or 5000) w.i. Higher Captured trans. Between 8-4-
- CCR Recovered with interest u/s 11AA of CEA 1944 / Sec 75 of FA 11AC(1)(a) 11 to 14-5-15
1994
Note- in S Tax- 10% Penalty = 50% of duty
For this purpose, all credits taken during a month will be deemed to have 11AC(1)(a) 11AC(1)(b) 11AC(1)(d) 11AC(1)(e)
been taken on the last day of the month and the utilisation thereof will be Proviso If DO passed (Duty + int + (Duty + int +
deemed to have occurred in the following manner, namely: - No penalty if ( duty + int + Penalty) Penalty)
(i) the opening balance of the month has been utilised first; (Duty + int) Paid Penalty) Paid
(ii) credit admissible in terms of these rules taken during the month has been Before Paid in 30 Within 30 Paid in 30 days
utilised next; SCN or days of days of SCN of Receipt of
(iii) credit inadmissible in terms of these rules taken during the month has been within 30 Receipt of order
utilized thereafter. days of order Penalty =15%
SCN of duty Penalty =25%
& Pay 25% of demanded of duty
Proceeding Penalty determined
deemed to be imposed
concluded

Rule- 15 A- General Penalty- upto 5000

Rule 9A. Annual (1) A manufacturer of final products or provider of output services, shall submit to the Superintendent of
return.- Central Excise an annual return for each financial year, by the 30th day of November of the succeeding
year, in the form as specified by a notification by the Board.
(2) The provisions of rule 12 of the Central Excise Rules, 2002, in so far as they relate to annual return shall,
mutatis-mutandis, apply to the annual return required to be filed under this rule.

RULE 10A- (1) MANUFACTURER FACTORY

FACTORY ADDITIONAL DUTY U/S 3(5) OF CTA CREDIT DISTRIBUTE
TRANSFER OF
CENVAT CREDIT OF
ADDITIONAL DUTY (2) MANUFACTURER PREMISES REGISTRATION COMMON PAN BASIS
LEVIABLE U/S 3(5)
(3) MANUFACTRER QUARTERLY REGISTRED PREMISES
REGISTERED PREMISES ADDITIONAL DUTY U/S
OF CTA 1975
MANOJ BATRA 7
3(5) OF CTA BALANCE QTR END AVAILABLE - DISTRIBUTE
(4) CCR TRANSFER -
TRANSFER ENTRY DOCUMENT R-9 maintain
TRANSFER CHALLAN ISSUE NAME, ADDRESS TRANSFERRER AND RECIEVER , AMT TRANSFERRED

(5) RECIPIENT PREMISES- TRANSFER CHALLAN BASIS CREDIT
(6) CREDIT TRANSFER - TRANSFERRER AND RECIPIENT PREMISES AREA BASED EXEMPTION
(7) MANUFACTURER MONTHLY RETURN FILE - TRANSFERRER AND RECIPIENT PREMISES

EXEMPTED GOODS

1. Nil Rated Goods.

2. 100% exempted goods
3. Goods on which 2% duty is payable. [E/N:1/2011]
4. SL. NO. 67 & 128 GOODS OF NN- 12/2012
5. Non- excisable goods

EXEMPTED SERVICE

1. 100% Exempted Services.

2. Non Taxable Services u/s 66B [ e,g- Trading of goods or securities, service provided in non taxable territory.]
3. Services on which part of value is exempted to the condition that no CCR of IP/IS shall be allowed.[Abated service]
Not Exempt Service

- Service which is exported

- transportation of goods by a VESSEL from customs station in India TO A PLACE OUTSIDE INDIA
Analysis- Means CCR of IP/IS can Be taken when

- Service is exported
- Shipping Co. engaged in transport of goods outside India
MANOJ BATRA 8

Credit on capital goods- Rule 6(4)

No CENVAT credit shall be allowed on capital goods used exclusively in the manufacture of exempted goods or in providing exempted services
FOR A PERIOD OF 2 YEARS from the date of commencement of the commercial production or provision of services, as the case may be,

other than the final products or output services which are exempt from the whole of the duty of excise leviable thereon under any notification
where exemption is granted based upon the value or quantity of clearances made or services provided in a financial year:

Provided that where capital goods are RECEIVED AFTER THE DATE OF COMMENCEMENT OF COMMERCIAL PRODUCTION or provision of
services, as the case may be, the period oF 2 YEARS SHALL BE COMPUTED FROM THE DATE OF INSTALLATION of such capital goods..
 MANOJ BATRA 9

CCR utilisation

Rule No 1 to 1 correlation necessary

3(4) Proviso 1 to 1 correlation
CCR Utilised for payment of (1) duty (2) AMT PAYABLE ON REMOVAL OF IP/CG AS SUCH (3) AMT PAYABLE ON
REMOVAL OF DEFECTIVE FP (4) S. TAX
Proviso
CCR utilised only to extent available on the last day of month/QTR
For payment of duty of that month/QTR
Arrears of duty under section 11A can be paid by utilizing the CENVAT credit which has accrued subsequent to the period to which the arrears pertained.
Clean energy cess/ SBC/ Infrastructure cess and 1/2011- goods duty pay CCR USE
Restriction on utilisation
Rule 3(4) + 3(7)(b) + proviso to rule 3(4)
See chart
Cenvat Credit Utilization

1. BED /SED/GSI/S. TAX ALL (except Health Cess, NCCD)

 MANOJ BATRA 10
NOTE- BUYER 1/2011 OR 12/2012 GOODS PURCHASE
DUTY CREDIT
2. ADE (T & TA) ADE (T & TA) Duty
3. NCCD (FA, 2001) NCCD (Duty)
4) ADE 03 ADE 03

5) ADE 05 (Health Cess) Only ADE 05 (Health Cess)

6) CVD 3(3) OF CTA (SEE NOTE CVD

note- 85% of CVD CREDIT - ON IMPORT OF SHIP/BOATS

7) Special CVD u/s 3(5) of CTA ALL (except Health Cess, NCCD, S.TAX)
8) EC (Ex Goods/ S.TAX) EC (Ex Goods)/ EC (Taxable Sr)
9) SHEC (EX Goods/ S.tax) SHEC (Ex Goods)/ SHEC(Taxable Sr)
10) KKC KKC
SUMMARY
CCR of BED/SED/GSI can be utilised for payment of any ED Including EC & SHEC except H.Cess/NCCD
with effect from 01.03.2015, a manufacturer has been allowed to utilise the following credits of EC and SHEC for the payment of basic excise duty:
(i) Credit of EC and SHEC paid on IP/CG received in the factory of manufacture of final product on/after the 1st day of March, 2015.
(ii) Credit of balance 50% EC and SHEC paid on capital goods received in the factory of manufacture of final product in the financial year 2014-15.
(iii) Credit of EC and SHEC paid on input services received by the manufacturer of final product on or after the 1st day of March, 2015.
with effect from 01.06.2015, a service provider has been allowed to utilise the following credits of EC and SHEC for the payment of Service tax:
(i) Credit of EC and SHEC paid on IP/CG received in the factory of manufacture of final product on/after the 1st day of June, 2015.
(ii) Credit of balance 50% EC and SHEC paid on capital goods received in the factory of manufacture of final product in the financial year 2014-15.
(iii) Credit of EC and SHEC paid on input services received by the manufacturer of final product on or after the 1st day of June, 2015.
Can CENVAT credit of duties, other than National Calamity Contingent Duty (NCCD), be used to pay NCCD?
CCEx. v. Prag Bosimi Synthetics Ltd. 2013 (295) ELT 682 (Gau.) NO
3(7)(b) 100% EOU to DTA
CCR = CVD + Sp. CVD
MANOJ BATRA 11
If case Remand SC
Advance Ruling Authority for SETTLEMENT COMMISSION back to AA by
Appellate HC
advance Ruling under I. TAX Authority Not
Duty
function for excise, custom and treated as case
Pending
CESTAT

service tax also CCE(A)

By CA MANOJ BATRA (FACULTY OF CA FINAL AND IPC INDIRECT TAX

Business Start CEO SCN D. Order

Or Expansion
(1) Matters (iii) (iv) Exemption
Classification notification TO SETTLEMENT COMMISSION
(1) COND.- When Appl. made
(i) ED = (ii) Value ROD (i) SCN recd. But DO not Passed ( case Pending with AA)
(vi) (v) Any other (ii) Return Furnished (waive of this cond possible
(--) CCR notification Custom- BOE/SB/Bill of Export/ Label/ Decl FILED
(iii) Addl. Duty accepted more than 3 lakh
(iv) Pay Duty + Int before making Appl.
(v) Full & True Disclosure
(2) Applicant (3) when Application- (2) Appl cant be made
(i) JOINT VENTURE Before starting the Activity- (i) case Pending with Tri or Court
(a) NR + R/NR Manufacture/import/service or (ii) case relate to classification of goods
(b) R + NR Before Expansion of business (iii) in custom- sec 123 goods, Narcotic drugs
(C) JV- Min. 1 NR having
substantial interest (4) Appl. Rejected- (3) Benefit- immunity from prosecution and Penalty.
(ii) 100% Subs indian co- of - case pending with (4) Order Passed 9m ( 3m extension allowed)
Foreign co. which is holding co. CEO/CESTAT/COURT in
(iii) Specified Resident- PSU, applicant case (5) Application for settl comm.. can be allowed more than once during lifetime of
Public Co., Pvt Co., Firm- - case decided by court assessee except in 3 cases
LLP/OPC/Sole Prop (5) AR Appl. Can be withdrawn (i) Penalty levied for earlier case on ground of concealment.
within 30 days (ii) Person convicted of any offence under CEA 1944 after order of Settl comm..
(6) Benefit passed.
(iii) If the case has been sent back to CEO ( bcz full and true disclosure not made)
Order final Binding on
- Applicant
- Commissioner & sub-ordinate
MANOJ BATRA 12
DEMAND AND RECOVERY BY CA MANOJ BATRA ( FACULTY OF CA FINAL & IPC INDIRECT TAX
Assessee Relevant date (A) (A) PENALTY 11AC
Self Direct (1) Return Furnished- date of furnishing 11AA- OTHER THAN
assessed Recovery Return Int 18% FRAUD- (10% of Duty
Before SCN FURNISH duty u/s 11 (2) Return not furnished- Last date of p.a or 5000) w.i. Higher
RETURN shown in Return After
Return, (3) Erroneous Refund- Date of Refund due date No penalty if
but not (4) Prov Assessment- Date of till date (Duty + int) Paid
paid adjustment of duty after FA of Before SCN or
(5) Int. to be recovered- date of payment within 30 days of
payment of duty to which int relates No int. SCN
Assessee (A) CEO SCN SERVE NPL- 2 yrs (i) Duty If DO passed
If full Paid If Part Paid Duty Mode- 37 C Statement EPL 5 yr Fraud SCN payable ( duty + int + Penalty)
+ + Int (i) Tendering subsequent from served due to Paid in 30 days of
Inform Inform CEO Penalty (ii) Regd Post/ to SCN- Relevant not proved circular Receipt of order
CEO in in writing speed Deemed as date Treated (ii) Full Pay 25% of Penalty
writing SCN served Post/Courier SCN as NPL- 2 paid imposed
No SCN, within 2 yrs (iii) Paste on yr demand within 45
Penalty from date of Factory/Res./ can be days of Fraud
intimation Notice Board made. circular Penalty = 100% of
Demand order Passed Fraud- 1 year, other- 6 m (iii) No duty
CEO SCN Appeal- duty modified- int, penalty also modified appeal Captured trans.
SERVE Int. not mentioned separately- even then pay Between 8-4-11 to
(B) Amt above than duty- Sec 11 D 14-5-15 = 50% of
(1) Mfrer/Dealer Pay Not pay, not filed Appeal Sec 11E- duty
(2) Nil/ 100% Exempt goods- if (D) Sec- 11 Recovery Pref of Note- (Duty + int +
recovered in name of duty- pay (1) from Amt payable to assessee (Refund) Payment Penalty) Paid
(C) 11DDA Prov. Attachment (2) Attach Goods and sale First Within 30 days of
6 month + 2 year (3) Certificate action charge SCN
Note- Recovery from Sucessor of business- if bus sold (1) 529A Penalty =15% of duty
Pending SCN u/s 11A or 11D Attach
Note- Garnishee proceeding recovery from 3RD Person (2) RDBFI demanded
Property (Fraud / other than fraud Note- (Duty + int +
whom sum due to Assessee- e.g Bank/ Post office, (3)
Penalty)
Insurance Co., Debtor SARFAESI
Paid in 30 days of
Receipt of order
Penalty =25% of duty
determined
N