Page 54 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 3: Classification and Valuation of Excisable Goods

3.5 Keywords Notes

CETA: CETA and Customs Act both have sections and chapters. Remember you have read above
that the scheme of class is common for both CETA and Customs Act.

HSN (Harmonised System of Nomenclature): HSN system defines as excisable goods list in India
and goods are classified systematically following the footsteps of HSN (Harmonised System of
Nomenclature) as in Customs Tariff.
Specific Duty: It is the duty payable on the basis of certain unit like weight, length, volume,
thickness etc.
Tariff value: In some cases, tariff value is fixed by Government from time to time. This is a
“Notional Value” for purpose of calculating the duty payable.

Value based on Retail Sale Price: Section 4A of CEA (inserted w.e.f. 14.5.1997) empowers Central
Government to specify goods on which duty will be payable based on ‘retail sale price’

3.6 Review Questions

1. Describe Classification of Excisable Goods.

2. Explain about Broad Grouping in CETA.
3. Describe about Trade Parlance Theory.
4. Explain about Valuation of Excisable Goods.
5. Discuss about Valuation under Central Excise.
6. What do you know about Specific Duty?

7. Describe about rules of classification of Classification Goods.

Answers: Self Assessment

1. Basic excise duty 2. 2004
3. HSN 4. 1944
5. 1985 6. True

7. True 8. False
9. Government 10. National
11. Goods 12. Central
13. Retail 14. Excisable

3.7 Further Readings

Books Ahuja, Dr. Girish and Gupta, Dr. Ravi, Direct Taxes Law & Practice including Tax
Planning, 18th Edition 2008-09, Bharat Law House Pvt. Ltd.
Chanchal Kr Nag, Direct & Indirect Tax Laws & Practice, NCB Agency

Singhania, Dr. Vinod K. & Singhania, Dr. Kapil, Direct Taxes Law & Practice with
Special Reference to Tax Planning, 41st, Edition 2009-10, Taxman’s.

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