CWA ICWA Question papers Inter Group II
Applied Indirect Taxes December 2009
This Paper has 33 answerable questions with 1 answered.
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
Answer Question No. 1 which is compulsory and any five from the rest.
1. (a) State with reasons whether the following is true or false. 3×5=15
(i) Parts used for repair or replacement during warranty period are excisable. (0)
(ii) The conveyances are not allowed to leave India without written permission from the customs authorities. (0)
(iii) Central excise authorities cannot raise demands contrary to the approved classification/price list retrospectively. (0)
(iv) There are common provisions in Customs/Central Excise/ST. (0)
(v) Delay in filing appeal can be condoned but condonation is not a matter of right. (0)
(b) Fill up the blanks:
(i) Appeals under Central Excise and Customs must be filed within _________ days from the date of communication order. 1 (0)
(ii) Exclusive economic zone extends to _________ nautical miles from the base line under the customs Act. 1 (1)
(iii) Compressing and bottling gas ____________ (is/is not ) manufacture. 1 (0)
(iv) Erection of civil structure ___________ (is/is not) taxable services. 1 (0)
(v) At present deduction ___________ (is/is not) available on the basis of equalised freight and Central Excise. 1 (0)
(vi) Laptop Computer (Note Book Computer) brought as baggage by person above 18 years of age __________ (is/is not) fully exempt from customs duty. 1 (0)
(vii) Captive consumption is ___________ to duty, value is determined on the basis of cost+ ___________ %. 2 (0)
(viii) Job work is not ___________ . 1 (0)
(ix) Show cause notice issued by an officer beyond his power will be ___________ . 1 (0)
2. (a) Briefly examine the significance of the levy of “auto Dumping duty” under the Customs Tariff Act. 7 (0)
(b) Sakti has imported certain goods by AIR. FOB value of goods is $2000. Freight $ 500 and insurance $ 50. Rate of Exchange is $ 1 = Rs.50.
Landing charges is 1% of CIF value. Calculate the assessable value for Customs Duty. 8 (0)
3. Write short notes on any three of the following: 3×5=15
(a) Related person under the Central Excise Act. (0)
(b) Determination of value when goods are manufactured on job work basis. (0)
(c) Transaction value under the Central Excise Act. (0)
(d) Special Audit or Cenvat Credit Audit under section 14AA of the Central Excise Act. (0)
4. (a) Explain the provisions of interest on delayed payment under Central Excise and Customs. 7 (0)
(b) Explain the provisions of the Central Excise Act, 1944 which empower the Central Government not to recover the duties of excise not levied or short levied or short levied as a result of general practice. If the duty has been paid despite such practice, is it refundable? 6+2 (0)
5. (a) State briefly whether sales tax will be levied on the following:
(i) Shares and debentures
(ii) Sale of newspapers
(b) Write notes on –
e–payment of excise duty and state whether it is compulsory or not. 7+2 (0)
6. (a) State how the VAT system operates. 5 (0)
(b) What will be the consequences in case the ‘subject goods’ are not used by the manufacturer for the purpose specified in the notification? When will the subject goods be deemed as not been used for intended purpose? 5 (0)
(c) Discuss the validity or otherwise of the following statements with reasons– 2½ x 2=5
(i) Input cleared as such to a job worker on 1.10.2008 was not returned in 180 days, assessable value being RS.20,000, Excise duty @ 16.48%, 50% of the inputs were received on 1.4.2009. In this situation no Cenvat will be allowed in the year ending on 31.3.2009. (0)
(ii) Purchased a plant for Rs.1,16,480 cum–duty (excise duty rate 16.48%) on 12.12.2008 and received the plant into factory on 5.4.2009. Cenvat allowed will be only Rs.8,240 for the year ended on 31.3.2009. (0)
7. (a) A dealer effected following interstate sales during the quarter January – March’09
Invoice No.1 dt.01.01.09 Rs.1,02,000 inclusive of Tax
Invoice No.2 dt.31.01.09 Rs.50,000 exclusive of tax CST Rs.1,000 Total Rs.51,000
Invoice No.3 dt.01.02.09 Rs.40,800 inclusive of CST.
Invoice No.4 dt.15.02.09 Rs.25,500 inclusive of CST
Invoice No.5 dt.01.03.09 Rs.2,00,000 exclusive of tax.
Following further information is given
All registered dealers gave form ‘C’ except purchase of goods of invoice No.5. 50% of goods pertaining to invoice No.1 are returned on 21.3.09. 10% of goods pertaining to invoice No.2 is rejected.
CST is 2%, State Sales Tax is 8%
Compute the taxable turnover and tax payable. 8 (0)
(b) CST is single point tax. Elucidate.
A sells goods worth Rs.1,00,000 in Delhi to ‘B’ a registered dealer in Madras. B gives ‘C’ form and pays CST of Rs.2,000/-. B sells it to ‘D’ for Rs.1,10,000 a registered dealer by delivery of R/R and endorsing it on the back of R/R. Is there any CST liability to ‘D’ 4 (0)
(c) What is deemed sale in CST? 2 (0)
(d) Why certificate in form ‘H’ is necessary to a penultimate exporter? 1 (0)
8. Describe, in brief, the procedure for export of goods under bond as per Rule 13 of C.E. Rules, 1944. 15 (0)