Indirect Tax Laws

ICSI - Intermediate -  New Syllabus

December  2006

Part – B

Answer any two questions from this part.

Q 6. (a) Discuss the concept of ‘manufacture’ and ‘produce’ for the purposes of levy of central excise duty. (b) State the documents which shall be attached along with the application for obtaining the grant of entry-outwards for departure of a vessel under the customs law. (c) Under what circumstances the dispatch of goods from one State to another does not amount to inter-State sale for the purpose of levying of central sales tax? Discuss (8+6+6 = 20 marks)

Q 7 (a) Define ‘retail sale price’ with reference to the provisions of section 4A of the Central Excise Act, 1944 and explain the rules relating to valuation of excisable goods with reference to retail sale price. (b) Briefly examine the nature and significance of the levy of following duties under the Customs Tariff Act, 1975: (i) Countervailing duty; and (ii) Anti-dumping duty. (c) (i) Can the registration certificate once granted, be amended and, if so, under what circumstances? Explain the preposition with reference to the Central Sales Tax Act, 1956. (ii) Explain the provisions relating to suo motu cancellation of registration certificate under the Central Sales Tax Act, 1956 (8+6+6 = 20 marks)

Q 8. (a) What are the provisions regarding duty drawback allowable on re-export of goods under the Customs Act, 1962? (b) Geeta Ltd. supplies raw material to a job worker Seeta Ltd. After completing the job work, the finished product of 5,000 packets are returned to Geeta Ltd., putting the retail sale price as Rs. 20 on each packet. The product in the packet is covered under MRP provisions and 40% abatement is available on it. Determine the assessable value under the central excise law from the following details: Cost of raw material supplied – Rs. 30,000, Job worker’s charges including profit – 10,000, Transportation charges for sending the raw material to the job worker – 3,000, Transportation charges for returning the finished packets to Geeta Ltd. – 3,000. (c) Briefly explain the following with reference to the provisions of the Central Sales Tax Act, 1956 : (i) Appropriate State; (ii) Business; and (iii) Sale (8+6+6 = 20 marks).

June  2006

Part – B

Answer any two questions from this part.

Q 6. (a) The sales of a dealer (including central sales tax/sales tax, if any ) are as under : Cereals, pulses, sugar and salt (Exempt in the State) – Rs. 10,00,000, Shares and securities – Rs. 2,50,000, Other goods sold in the State – Rs. 20,00,000, Exports from India – Rs. 15,00,000, Goods purchased and sold in other State – Rs. 3,00,000, Inter-State sale on which rate of tax is 10% - Rs. 11,00,000, Inter-State sale to State Government on Form-D (Sales tax rate in the State is 5%) – Rs. 2,60,000, Inter-State sale to a registered dealer on Form-C (State tax rate is 3%) – Rs. 5,15,000, Goods sent to branch office located in other State on Form-F – Rs. 10,00,000. Calculate taxable turnover of the dealer under the Central Sales Tax Act, 1956. (b) Explain the meaning of 1^st and 2^nd check appraisements under the Customs Act, 1962. (c) What do you mean by ‘self-assessment procedure’ under the Central Excise Act, 1944? Is it available for all kinds of goods? [8+6+6 = 20 marks]

Q 7. (a) Explain ‘compounded levy scheme’ under the central excise law (b) Bring out the distinction between the concept of ‘identical goods’ and ‘similar goods’ with reference to the customs valuation rules. (c) What is ‘deemed sale’ with reference to the Central Sales Tax Act, 1956 and explain the inclusions and exclusions in the definition of sale under the provisions of the Central Sales Tax Act, 1956? [8+6+6 = 20 marks]

Q 8. (a) Write notes on any two of the following: (i) CENVAT (ii) Deemed export (iii) Duty drawback. (b) Attempt any two of the following : (i) Under what circumstances the registration of a dealer is cancelled under the Central Sales Tax Act, 1956 and when it may be required to be amended? (ii) What is ‘penultimate sale’ in the course of export? (iii) Explain the powers of the Central Government with regard to imposition of prohibition on imports/exports and specify some of the purposes for which such imposition is made with reference to the provisions of the Customs Act, 1962 [10+10 = 20 marks].

December  2005

Part – B

Answer any two questions from this part.

Q 6 (a) “On arrival, every vessel has to seek permission from customs authorities for its entry for unloading of cargo and loading of export goods.” In the light of this statement, discuss the procedure for seeking such permission from the customs authorities. (b) Briefly explain the concept of ‘transaction value’ under section 4 of the Central Excise Act, 1944. What are the requirements to be satisfied for applicability of transaction value in a given case? (10+10 = 20 marks)

Q 7. (a) Explain the concept of ‘entry’ with reference to the provisions of the Customs Act, 1962 and outline the significance of (i) bill of Entry and (ii) shipping bill. (b) When shall a sale or purchase of goods be deemed to take place in the course of export or import? What is the position of last sale or purchase of goods preceding the sale or purchase occasioning the export or import? (c) In the light of the provisions of the Central Excise Act, 1944, examine the correctness or otherwise of the proposition that the goods must be movable and need not be marketable for the purpose of  levy of excise duty. Also state the essential requirements of goods to be excisable (5+5+10 = 20 marks).

Q 8. (a) What is the procedure for removal of goods on invoice under the Central Excise law? (5 marks) (b) Write a note on ‘safeguard duty’ under the Customs Act, 1962 (5 marks) (c) “Value added tax (VAT) system removes the cascading effect of taxes.” Elucidate OR Discuss the following with reference to the provisions of the Central Sales Tax Act, 1956: (i) Crossing the customs frontiers of India (ii) How does a dealer discharge the burden of proof that he is not liable to tax in the course of inter-State sale? [10 marks]

ICSI - Intermediate -  New Syllabus

June  2005

Part – B

Answer any two questions from this part.

Q 6 (a) Explain with examples the terms ‘goods’ and ‘declared goods’ in the context of the Central Sales Tax Act, 1956 (b) Write short notes on the following in terms of the Customs Act, 1962: (i) Crucial date (ii) Duty drawback. (c) What are the basic conditions for levy of central excise duty? (d) Gopal is doing only job work by charging Rs. 20 per product. The cost of materials supplied to him for the job work is Rs. 100 per product. Calculate the excise duty payable @ 8% assuming that the job worker has undertaken to pay the excise duty (8+6+3+3 = 20 marks).

Q 7. (a) During the year 2004-05, the gross inter-State sales made by Stead Fast Ltd. of Jodhpur is Rs. 71,79,000. Although the central sales tax is not shown separately, the following information is available from the records of the company: (i) The company sells machinery which makes copper wire rods. If it is sold in Rajasthan State, the sales tax rate is 7% (plus additional tax @ 10% of sales tax). (ii) Information regarding sales with and without Form-C is as follows:

The following items have not been deducted to calculate gross sales turnover.

Ascertain the sales turnover and central sales tax payable

Q 7(b) State whether registration under Central Excise Act, 1944 is mandatory. If so, who is liable to get registered under this Act? (10+10 = 20 marks)

Q 8 (a) What is meant by ‘cascading effect’ in the context of the Central Excise Tariff Act, 1985? (b) Explain whether profit motive is material for the purpose of business under the Central Sales Tax Act, 1956. (c) Write short notes on the following under the Customs Act, 1962: (i) Baggage and bona fide baggage; and (ii) Out of charge (8+6+6 = 20 marks)

ICSI - Intermediate -  New Syllabus

December  2004

Part – B

Answer any two questions from this part.

Q 6 (a) Define the concept of ‘deemed manufacture’ under the Central Excise Act, 1944. Give at least six examples of the concept (b) Discuss the special provisions relating to goods imported or exported by post under the Customs Act, 1962 (c) With reference to the provisions of the Central Sales Tax Act, 1956, answer the following: (i) Lakshmi Comptech, a dealer of computer software and hardware, is located in special economic Zone. Your advice is sought by the management as to the benefits or concessions available to the firm (ii) Mahavir Trading Co. transferred its goods from its factory in Haryana to its branch at Chennai. Comment on the procedure to be followed for branch transfer (iii) Calculate the tax liability under the Central Sales Tax Act, 1956 based on the following details: Turnover reported for the year ended 31^st March, 2004 : Rs. 68,50,000. Goods sold during February, 2004 returned by customers during June, 2004 : Rs. 6,62,000. Goods dispatched during March, 2004 valued Rs. 10,25,000 returned by customers during October, 2004. Invoices raised are inclusive of the central sales tax at 4% (6+6+8 = 20 marks).

Q 7 (a) How is the customs duty levied in case imported goods are pilfered before the clearance? (b) Shiva and Co., an assessee, transferred a consignment of 10 tons paper to the depot from Delhi to Chandigarh on 10^th July, 2003 for value of Rs. 12,500 per ton. The transport cost was Rs. 500 per ton. The same variety and quality of paper normally being sold at Chandigarh depot on 10^th July, 2003 was at a transaction value of Rs. 15,000 per ton to unrelated buyers. (i) Which transaction value should be considered for assessment to excise duty? (ii) In case there were no sales of that variety and quality of paper on 10^th July, 2003, but sales were effected on 1^st July, 2003 previously for Rs. 14,000 per ton, what would be the position ? (c) Is registration under the Central Excise mandatory? Who shall get registered under the central excise law? State the procedure for obtaining registration (6+6+8 = 20 marks)

Q 8. (a) From the following information, compute the taxable turnover and tax liability of four products, namely, A, B, C and D. The State sales tax rate of Product-A is 12%, it is 8% for Product-B, Product-C is the declared good for which tax rate is 3%. The local sales tax on Product-D has been declared by the State government generally to be 2%. Total sales value including central sales tax applicable against Form-C:
Year – 2003-04,
Product-A – Rs. 10,40,000, Product-B – Rs. 15,60,000, Product-C – Rs. 10,30,000, Product-D – 15,30,000.
Additional information - (i) A buyer of Product-A to whom goods worth Rs. 1,04,000 were sold on 14^th August, 2003, returned goods worth Rs. 20,800 (including CST) on 15^th January, 2004 (ii) Another buyer of Product-A could not provide Form-C for goods worth Rs. 15,600.
(iii) A buyer of Product B to whom goods worth Rs. 20,800 were sold did not send Form-C as the Product-B was not covered in his registration certificate (iv) A buyer of Product-C to whom goods worth Rs. 10,300 were sold on 5^th April, 2003 returned the goods on 17^th November, 2003. (v) Another buyer of Product-C to whom goods worth Rs. 15,450 were sold could not provide Form-C. (vi) There was only one buyer of Product-D and he did not provide any Form-C. (b) When are the goods said to be in transit within the meaning of the Customs Act, 1962? (c) Is there any difference between ‘baggage’ and ‘bonafide baggage’? Explain. (10+5+5 = 20 marks)

June 2004

Part - B

Answer any two questions from this part.

Q 6 (a) Explain the concept of ‘related person’ under the Central Excise Act, 1944 with the help of decided cases. Give at least two examples not covered under the concept of related person (b) Explain the salient features of procedure for clearance under the Customs Act, 1962 in the following cases : (i) Home consumption and (ii) Warehousing (10+10 = 20 marks).

Q 7 (a) Give a brief description of CENVAT credit. What are its salient features? (b) Kamath was a dealer engaged in oil business at Bangalore. He furnished the following particulars with a request to compute the central sales tax payable for the year 2002-03 (April to March) (10+10 = 20 marks)

Q 8 (a) State any five of the generally accepted principles in classification of goods under the central excise laws (b) What is ‘sale’ under the Central Sales Tax Act, 1956? What are the transactions that do not constitute a sale under the said Act? Explain. (c) What are various functions involved in assessment stage under he Customs Act, 1962 and explain one such function in detail? (6+7+7 = 20 marks).

Indirect Tax Laws

ICSI - Intermediate -  New Syllabus

December  2003

Part - B

Answer any two questions from this part.

Q 6. (a) Explain the basic concept of assessable value as contained in section 4 of the Central Excise Act, 1944 (b) What are the circumstances under which customs duties may be assessed provisionally? (c) What is ‘penultimate sale in the course of export’ under the Central Sales Tax Act, 1956? [8+8+4 = 20 marks]

Q 7 (a) Adwell Co. of Indore (Madhya Pradesh) has supplied the following statement of sales : (i) Sales of cloth Rs. 12,00,000 of which Rs. 7,50,000 sold in Madhya Pradesh and rest in Rajasthan. (ii) Sales on Form D to Rajasthan Government : Rs. 6,24,000. (iii) Sales to a registered dealer of Gujarat for sale on Form C of such goods which are given in his registration certificate : Rs. 4,68,000. (iv) Sale of declared goods to unregistered dealers of Maharashtra : Rs. 9,45,000 (The rate of sales-tax on such goods is 2% in the State and the customer returned goods worth Rs. 46,500 within 6 month.) (v) Sale to a registered dealer of Gujarat of such undeclared goods which have not been given in his registration certificate: Rs. 3,63,000. (Sales tax on such goods in the State is 7%.) (vi) Sale of goods to Bangladesh : Rs. 6,00,000. (Rate of sales tax in the State is 4%.) (vii) Subsequent sale during inter-State trade : Rs. 1,20,000. (Rate of tax in the State is 10%). Compute the taxable turnover under the Central Sales Tax Act, 1956. Sales include the sales tax. (b) Define the following terms under the Central Excise Act, 1944: (i) Goods (ii) Excisable goods (iii) Manufacture or produced (iv) New excise central code number [10+10 = 20 marks].

Q 8. (a) What are the provisions of the Customs Act, 1962 with regard to grant of exemption from customs duty? (b) State the provisions of ‘duty drawback’ under the Customs Act, 1962. (c) State the provisions relating to cancellation of registration at dealer’s request under the Central Sales Tax Act, 1956 [8+8+4 = 20 marks] 

Indirect Tax Laws

ICSI - Intermediate -  New Syllabus

June  2003

Part - B

Answer any two questions from this part.

Q 6. (a) Discuss the provisions relating to ‘registration’ as per the new central excise rules. (b) What do you understand by the term ‘duty drawback’ under the Customs Act, 1962 and explain the provisions relating to duty drawback? [10+10 = 20 marks]

Q 7. (a) Distinguish between ‘physical control’ and ‘self-removal procedure’ (SRP) under Central Excise Act, 1944. (b) How is ‘taxable turnover’ determined under the Central Sales Tax Act, 1956? (c) State the provisions relating to the determination of assessable value of imported goods under the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, if buyer and seller are related persons. [5+5+10 = 20 marks]

 8. (a) Answer the following with reference to the provisions of the Central Sales Tax Act, 1956: (i) Penultimate sale in course of export trade. (ii) Sale outside the State. (b) Discuss the taxability of the subsequent sales under the Central Sales Tax Act, 1956. (c) Briefly outline the powers vested with the central government to exempt any excisable goods from the payment of duty as provided in section 5A of the Central Excise Act, 1944? [10+5+5 = 20 marks]

Indirect Tax Laws

ICSI - Intermediate -  New Syllabus

December 2002

Part - B

Answer any two questions from this part.

Q 6. (a) Vishal is a dealer. His sales during the first quarter of 2001-02 (April to June) are as under:

(i) Goods worth Rs. 7,000 (exclusive of tax) against Invoice No. 104 were returned on 29.06.2001. (ii) Goods worth Rs. 13,000 (inclusive of tax) sold on 26.12.2000 were returned on 30.06.2001. (iii) Goods worth Rs. 6,500 (inclusive of tax) sold on 27.12.2000 were returned on 30.06.2001. All the above sales were made in the course of inter-State trade. Calculate the turnover and sales tax payable if the rate of tax is 4%. (b) How would you determine the transaction value of goods? (c) Discuss the provisions relating to remission of duty on destroyed/damaged goods under the Customs Act, 1962. [10+5+5 = 20 marks]

Q 7. (a) What is the control mechanism provided under the Central Excise law for removal of goods? (b) Attempt the following with reference to provisions of the Central Sales Tax Act, 1956: (i) Is trade discount includible in ‘sales price’? (ii) Explain the expression ‘sale in the course of import’. (iii) How does a dealer prima facie discharge the burden of proof that he is not liable to tax in the course of inter-State sale? (iv) A publisher of a newspaper sells the unsold copies of the newspaper as waste. Is such a sale liable to sales tax? [10+2+3+3+2 = 20 marks]