Tuesday, August 17, 2010

Definitions under Excise By CA Vishal Bhattad Sir

DEFINITIONS UNDER excise

Sec 2(a) “Adjudicating authority”

means any authority competent to pass
any order or decision under this Act,

but does not include the Central Board of Excise and Customs
constituted under the Central
Boards of Revenue Act, 1963
Commissioner of Central Excise (Appeals) or
Appellate Tribunal.

Sec 2(aaa) Broker or Commission agent

“broker” or “commission agent” means a person who in the ordinary
course of business makes contracts for the sale or purchase
of excisable goods for others.

Sec 2 (b) “Central Excise Officer”
means the
 Chief Commissioner of Central Excise,
 Commissioner of Central Excise,
 Commissioner of Central Excise (Appeals),
 Additional Commissioner of Central Excise,
 Joint Commissioner of Central Excise
 Assistant Commissioner of Central Excise or Deputy Commissioner of
Central Excise or
 any other officer of the Central Excise Department, or
 any person (including an officer of the State Government) invested
by the Central Board of Excise and Customs constituted under the
Central Boards of Revenue Act, 1963 with any of the powers of a
Central Excise Officer under this Act.

Sec 2 (c) Curing

“curing” includes wilting, drying, fermenting and any process for
rendering an unmanufactured product fit for marketing or manufacture.

Sec 2 (d) Excisable goods

means goods specified in the First Schedule and the Second
Schedule to the Central Excise Tariff Act, 1985 as being subject to a
duty of excise and
includes salt.

Sec 2 (e) Factory
means any premises, including the precincts thereof,
 wherein or in any part of which excisable goods other than salt are
manufactured, or
 wherein or in any part of which any manufacturing process connected
with the production of these goods is being carried on or is
ordinarily carried on.


Sec 2 (f) Manufacture

“manufacture” includes any process, -
(i) incidental or ancillary to the completion of a manufactured product.
(ii) which is specified in relation to any goods in the Section or
Chapter notes of the First Schedule to the Central Excise Tariff Act,
1985 as amounting to manufacture or
(iii) which, in relation to the goods specified in the Third Schedule,
involves packing or repacking of such goods in a unit container or
labelling or re-labelling of containers including the declaration or
alteration of retail sale price on it or adoption of any other
treatment on the goods to render the product marketable to the
consumer,

and the word “manufacturer” shall be construed accordingly and shall include
 not only a person who employs hired labour in the production or
manufacture of excisable goods,
 but also any person who engages in their production or manufacture
on his own account.

Sec 2(h) Sale and Purchase

“sale” and “purchase”, with their grammatical variations and cognate
expressions, mean any transfer of the possession of goods by one
person to another in the ordinary course of trade or business for cash
or deferred payment or other valuable consideration;

Sec 2 (k) Wholesale dealer

means a person who buys or sells excisable goods wholesale for the
purpose of trade or manufacture, and
includes a broker or commission agent who, in addition to making
contracts for the sale or purchase of excisable goods for
others, stocks such goods belonging to others as an agent for the
purpose of sale.

DEFINITIONS UNDER CENTRAL EXCISE RULES, 2002

Rule2 (c) Assessee

“Assessee” means any person
 who is liable for payment of duty assessed or
 a producer or manufacturer of excisable goods or
 a registered person of a private warehouse in which excisable goods
are stored and
includes an authorized agent of such person.

Rule2 (ea) Large Taxpayer
"large taxpayer" means a person who,-

 has one or more registered premises under the Central Excise Act,
1944 / of the Finance Act, 1994 (Service Tax)
 and is an assessee under the Income Tax Act, 1961, who holds a
Permanent Account Number issued under section 139A of the said Act,
and
who has paid during the Financial Year or Preceding Financial Year
(i) excise duty in cash (account current) of Rs 5 crore or more; or
[For Manufacturer]
(ii) service tax in cash (account current) of Rs 5 crore or more; or
[For Service Provider]
(iii) advance (income) tax/corporation tax of Rs 10 crore or more
[For Income Tax Payer]


DEFINITIONS UNDER CENVAT CREDIT RULE, 2004

Rule2 (a) capital goods
Means
(A) the following goods, namely :-
(i) all goods falling under Chapter 82, Chapter 84, Chapter 85,
Chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the First
Schedule to the Excise Tariff Act;
(ii) pollution control equipment;
(iii) components, spares and accessories of the goods specified at (i)
and (ii);
(iv) moulds and dies, jigs and fixtures;
(v) refractories and refractory materials;
(vi) tubes and pipes and fittings thereof; and
(vii) storage tank,
used -
(1) in the factory of the manufacturer of the final products, but does
not include any equipment or appliance used in an office; or
(2) for providing output service.

(B)motor vehicle registered in the name of provider of output service
for providing taxable service as specified in sub-clauses (f), (n),
(o), (zr), (zzp), (zzt) and (zzw) of clause (105) of section 65 of the
Finance Act;

Rule2 (d) Exempted goods

means excisable goods which are exempt from the whole of the
duty of excise leviable thereon, and
includes goods which are chargeable to “Nil” rate of duty.

Rule2 (e) Exempted services

means taxable services which are exempt from the whole of the
service tax leviable thereon, and
includes services on which no service tax is leviable under
section 66 of the Finance Act.

Rule2 (h) Final products

means excisable goods manufactured or produced from
 input, or
 using input service;

Rule2 (ij) First stage dealer
means a dealer, who purchases the goods directly from,
(i)
 the manufacturer under the cover of an invoice issued in terms of
the provisions of Central Excise Rules, 2002 or
 from the depot of the said manufacturer, or
 from premises of the consignment agent of the said manufacturer or
 from any other premises from where the goods are sold by or on
behalf of the said manufacturer, under cover of an invoice; or
(ii)
 an importer or
 from the depot of an importer or
 from the premises of the consignment agent of the importer,
under cover of an invoice.

Rule2 (n) Job work
Means processing or working upon of raw material or semi-finished
goods supplied to the job worker,
 so as to complete a part or whole of the process resulting in the
manufacture or
 finishing of an article or any operation which is essential for
aforesaid process
and the expression “job worker” shall be construed accordingly.

Rule2 (k) Input
means
(i) all goods, except light diesel oil, high speed diesel oil and
motor spirit, commonly known as petrol, used in or in relation to the
manufacture of final products whether directly or indirectly and
whether contained in the final product or not and
includes
 lubricating oils, greases, cutting oils, coolants, accessories of
the final products cleared along with the final product,
 goods used as paint, or as packing material, or as fuel, or
 goods for generation of electricity or steam
• used in or in relation to manufacture of final products or
• for any other purpose, within the factory of production.
(ii) all goods, except light diesel oil, high speed diesel oil, motor
spirit, commonly known as petrol and motor vehicles, used for
providing any output service.
Explanation 1. - The light diesel oil, high speed diesel oil or motor
spirit, commonly known as petrol, shall not be treated as an input for
any purpose whatsoever.
Explanation 2. - Input include goods used in the manufacture of
capital goods which are further used in the factory of the
manufacturer.

Rule2 (l) Input service
means any service,
(i) used by a provider of taxable service for providing an output service, or
(ii) used by the manufacturer, whether directly or indirectly, in or
in relation to the manufacture of final products and clearance of
final products from the place of removal, and
includes services used in relation
 to setting up, modernization, renovation or repairs of a factory,
premises of provider of output service or an office relating to such
factory or premises,
 advertisement or sales promotion, market research, storage up to the
place of removal, procurement of inputs,
 activities relating to business, such as accounting, auditing,
financing, recruitment and quality control, coaching and training,
computer networking, credit rating, share registry, and security,
inward transportation of inputs or capital goods and outward
transportation up to the place of removal.

Rule2 (m) Input service distributor

Means an office of the manufacturer or producer of final products or
provider of output service,
 which receives invoices issued under rule 4A of the Service Tax
Rules, 1994 towards purchases of input services and
 issues invoice, bill or, as the case may be, challan for the
purposes of distributing the credit of service tax paid on the said
services to such manufacturer or producer or provider, as the case may
be.



Rule2 (p) Output service
Means any taxable service provided by the provider of taxable service,to
 a customer,
 client,
 subscriber,
 policy holder or
 any other person,
as the case may be, and the expressions ‘provider’ and ‘provided’
shall be construed accordingly.

DEFINITIONS UNDER EXCISE VALUATION

Sec 4(3)(b) Related

Persons shall be deemed to be “related” if
(i) they are inter-connected undertakings.(as per Sec 2 of MRTP Act,1969)
(ii) they are relatives.(as per Sec 6 of Companies Act,1956)
(iii) amongst them the buyer is a
 relative and a distributor of the assessee, or
 a sub-distributor of such distributor; or
(iv) they are so associated that they have interest, directly or
indirectly, in the business of each other.

Sec 4(3)(c) Place of Removal

“place of removal” means
(i) a factory or any other place or premises of production or
manufacture of the excisable goods;
(ii) a warehouse or any other place or premises wherein the excisable
goods have been permitted to be deposited without payment of duty.
(iii) a depot, premises of a consignment agent or any other place or
premises from where the excisable goods are to be sold after their
clearance from the factory.
from where such goods are removed

Sec 4(3)(d) Transection Value

“transaction value”
means the price actually paid or payable for the
goods, when sold, and

includes in addition to the amount charged as price,
any amount that the buyer is liable to pay
 to, or on behalf of, the assessee,
 by reason of, or in connection with the sale,
whether payable at the time of the sale or at any other time,
including, but not limited to, any amount charged for, or to make
provision for,
advertising or
storage
publicity,
outward handling
marketing and selling organization expenses, servicing,

warranty,

commission or

any other matter,
but does not include the amount of
 duty of excise,
 sales tax and
 other taxes, if any,
actually
paid or actually payable on such goods.
Explanation to Sec 4A Retail Sale Price

“retail sale price”
means the maximum price at which the excisable goods in
packaged form may be sold to the ultimate consumer and
includes all taxes, local or otherwise, freight, transport
charges, commission payable to dealers, and all charges towards
advertisement, delivery, packing, forwarding and the like and the
price is the sole consideration for such sale :

No comments:

Post a Comment