A PROJECT REPORT ON “ STUDY OF EXCISE DUTY PAYMENT BY GABRIEL INDIA LTD. ” AT [pic] -: Submitted By:- AVINASH CHANRDAKANT IGHE -: The Analysis Information:- PRO:-D. D. WALKE -: Affiliated To :- College of Pune N. D. M. V. P. Samaj’s Nashik [pic] Institute of Administration Analysis and Know-how (IMRT) For The Educational 12 months 2008 -2009 PREFACE Oblique tax is the some of the monumental supply of fund assortment of the Indian authorities which aids to growth bills and different points. Central excise is one points of fund/income assortment.
Options of oblique taxes. Authorities of India wants funds for numerous functions like upkeep of regulation and order, defence, social /well being providers and many others. Authorities obtains funds from numerous sources out of which one major supply is taxation, Justice Holmes of US Supreme Court docket has way back rightly stated that tax is the worth which we pay for a civilized society. -view echoed in Parshuram Pottery works ltd vs. ITO (1977) 106ITR 1(sc). Taxes are conventionally broadly categorized as Direct taxes and oblique taxes.
Because the identify recommend, direct taxes are paid immediately and oblique taxes paid not directly. Within the case of oblique taxes, they’re paid by one individual, however he recovers the identical from one other individual. Thus, the one who truly bears the tax burden pays it not directly by another individual, Who virtually, merely acts as colleting agent after all, he’s liable if fails to gather and pay the taxes. Central excise is completely whit the manufacturing firm, which firm Produce or manufacture excisable items as per Central Excise Act 1944.
Excisable items point out which items failing beneath Central Excise Act 1944, And additionally it is have to be movable and marketable and have to be produce or manufacture in India. Oblique tax construction on items. • Excise responsibility 14%, • Schooling cess 2%, • Secondary and better secondary training cess 1%, • Vat 12. 50%. Bill have to be have Four copy 1) Unique for purchaser. 2) Duplicate for transporter. Three) Third for assesses. Four) Fourth acknowledgement copy. ACKNOWLEDGEMENT It offers me immense pleasure to current this mission report on research of Excise Responsibility Paid out by GABRIEL INDIA LTD.
In partial achievement of post-graduate course M. B. A. No work may be carried out with out the Helpance and steering of assorted individuals. I’m pleased to take this chance to impress my gratitude to those that have helped me in finishing this mission report. On the outset, I wish to thank Mr. Kadam Head of Dept. (Excise) of ‘GABRIEL INDIA LTD’ for his or her precious recommendation and steering throughout my mission completion, additionally Mr. Doke for well timed Help regarding numerous points of mission. I might be failing in my responsibility if I don’t specific my deep sense of gratitude to Prof.
D. D. WALKE with out his steering. It wouldn’t have been potential for me to finish this mission work. Lastly I wish to thank all professors and employees at I. M. R. T. , my mates and all these individuals who contributed immediately or not directly for profitable completion of this mission. AVINASH C. IGHE DECLARATION I, Avinash Chandrakant Ighe, scholar of MBA learning in Institute of Administration Analysis & Know-how, Nashik solemnly declare that the mission titled “STUTY OF EXCISE DUTY PAYMENT BY GABRIEL INDIA LTD. was carried out by me in partial achievement of the MBA program beneath College of Pune. This mission was beneath taken as a part of tutorial curriculum as per college guidelines and norms and by no industrial curiosity or motive. It’s my unique work and never submitted elsewhere for every other goal earlier. PLACE: NASIK AVINASH C. IGHE DATE: INDEX |Chapter No. |Contents |Web page No. | | 1 | |INTRODUCTION ABOUT THE STUDY | 1-Eight | | |1. |Object of the mission | 1 | | |1. 2 |Number of the Matter for research | 2 | | |1. Three |Goal of the mission | Three | | |1. Four |Analysis methodology | Four | | | |Scope of the research | 5 | | |1. |Limitation of research | 6 | | |1. 7 |Income assortment of main taxes in India | 7 | | |1. Eight |Finances modifications 2008 | Eight | | | | | | | 2 | |PROFILE OF THE ORGANIZATION | 9-15 | | |2. |Introduction of the Firm | 9 | | |2. 2 |Product Profile | 14 | | |2. Three |Organizational construction | 15 | | | | | | | Three | |ANALYSIS AND INTERPRETATION OF DATA | 16-53 | | | | | | | | | | | | | | | | | |DDDDDDDATADATA | | | |Three. 1 |Matter beneath research | 16 | | |Three. |Key Assessment & Knowledge presentation | 35 | | | | | | | Four | |EXECUTIVE SUMMARY | 54-56 | | | | | | | 5 | |CONCLUSIONS & FINDING | 57-58 | | | | | | | 6 | |SUGGESTIONS & RECOMMENDATIONS | 59 | | | | | | | 7 | |APPENDICES | 60-61 | | |6. 1 |Bibliography | 60 | | |6. |Glossary | 61 | | | | | | 1. Object of the Project In Grasp in Enterprise Administration, theoretical data isn’t ample. Sensible data acquired by the mission may be very helpful in our future. MBA has to play give up accountable function as a supervisor, in order that sensible data is should for administration scholar. In the course of the mission we come throughout totally different actual life issues. This sensible data helps us in future to beat such issues within the company world. The aims of the mission work are as follows: 1. To allow the MBA scholar to check their theoretical data in sensible. 2.
To offer coaching to scholar by the group, that is very helpful of their future. Three. Preparation of mission report is obligatory for each MBA scholar, that’s the reason the first goal of any mission is fulfill the requirement of the syllabus with the greedy the data. 1. 2Selection of the subject for research Matter choices the one of many necessary facet of our mission. Because it determined the plan of action, to be adopted. The subject chosen ought to be such that it helps in understanding the excise idea clearly, as was given the subject by the corporate itself. This matter given by mission information was “STUTY OF EXCISE DUTY PAYMENT BY GABRIEL INDIA LTD”.
Covers all of the issues associated to excise Assessment offered by the corporate. 1. 3Objectives of the mission 1. To check process of central excise registration. 2. To check E. R. 1 type of central excise. Three. To check applicability of the central excise. Four. To check journey of Cenvat credit score. 5. To check means of Cenvat credit score taken. 6. To check drawbacks of central excise. 1. 4RESEARCH METHODOLOGY Analysis methodology is a solution to systematically resolve the analysis downside. It could be understood as a science of learning now analysis is finished systematically. In that numerous steps, these are usually adopted by a researcher in learning his downside together with the logic behind them.
Knowledge assortment is necessary step in any mission and success of any mission can be largely rely on now a lot correct it is possible for you to to gather and the way a lot time, cash and energy can be required to gather that mandatory information, that is additionally necessary step. Knowledge assortment performs an necessary function in analysis work. With out correct information obtainable for Assessment you can not do the analysis work precisely. There are two forms of information assortment strategies obtainable. 1) Main information: – The details about the Firm is gathered from the dialogue with the staff/employees. 2) Secondary information:- The secondary information collected – The steadiness sheets as on the date of 31st Dec 2007 for the interval of 1st April 2007 to 31st Dec 2007 The methodology of this research has been adopted on the next foundation: Examine of assorted Journals, Notes & Books. • Assortment of Main & Secondary information data of the group. • Assessment of the collected information for its utility. 1. 5Scope of the mission The excise is the necessary tax from oblique tax. This mission covers all factors about excise and likewise cenvat credit score guidelines and situations. The central excise regulation primarily comprise of Central Excise act 1944, Central Excise guidelines 2002, Cenvat Credit score Rule 2004. This mission additionally includes central excise registration process, assessee profile, guidelines associated with central excise, journey of cenvat credit score rule, means of cenvat credit score taken and disadvantages of central excise.
Central excise is supply of Indian Authorities from assortment funds. 1. 6 LIMITATIONS OF THE STUDY • Usually firm doesn’t permit outsiders to conduct any research or analysis work in firm. Subsequently, get the mission achieved in firm itself was very tough. • On account of confidentiality some necessary info, that are necessary for the mission, couldn’t be collected. • A few of the info lack in accuracy, as a result of which approximate values have been used for the Assessment. Therefore, the outcomes additionally reveal approximate values. • The mission relies on theoretical pointers and as per conditions prevalent on the time of sensible coaching.
Therefore, it is probably not apply to totally different conditions. • The time p for the mission was very quick which was of two months, which itself acts as a serious constraint. Furthermore, learning the rules and utilized it virtually inside such quick time p was a process of nice stress. 1. 7 Income assortment of main taxes in India [pic] Be aware:- (1) N. A – not obtainable. (2) Figures in crores. 1. Eight Finances modifications 2008. Finances 2007-08 and Finance Invoice 2008 was offered earlier than Parliament on 29-02-2008. The modifications that are efficient instantly or from 1-04-2008 have been mentioned at related locations. The statutory modifications and modifications in responsibility charges are summarized in fort pages.
Highlights as follows:- • Basic price of primary responsibility lowered from 16% to 14% from1-Three-2008. • Rule 6(Three) of cenvat credit score rule recast to supply for proportionate credit score in case the place producer is manufacturing each exempted and taxable items and repair supplier is offering each taxable in addition to exempted providers. • In case of deemed producer, easy repacking can be ‘Manufacture’ 1-Three-2008. Until now, labeling, re-labeling and likewise repacking was required. • Service tax on GTA to be paid by money solely. Controversy referring to cenvat credit score of outward freight continues. • Strips of plastics for weaving material eligible for SSI exemption 1-Four-2008. EOU need to pay responsibility equal to 50% of customs responsibility plus excise responsibility 1-Three-2008. • NCCD of 1% imposed on cell phones however NCCD on PFY and pan masala not containing tobacco has been withdrawn. 2. 1 Introduction of the corporate Gabriel India units up its facility in Parwanoo in 1978 in collaboration with Federal Mogul, USA world chief in thin-walled, bimetal engine bearings, the Parwanoo plant is provided with a totally built-in facility for the manufacture of a whole vary of bimetal bearing, bushes, flanges and thrust washes; together with manufacturing of powder metallic and bimetal strips. In 2004, Gabriel has put up a brand new plant in Khandsa (Haryana) for anufacture of aluminum tin bearings. Anand Engine bearing division was emerged in 2007 from Gabriel India Ltd and is now referred to as Anand Engine Part Ltd. Anand Engine Part Ltd is a number one suppler of Engine bearings to home OEMS and substitute market within the automotive trade in addition to different segments such Railway, Marine and energy technology. Its product additionally being exported to a number of oversea markets. Identify of the corporate: – Gabriel India restricted, Deal with of firm: – 29th milestones, Pune-Nashik Freeway, Village Kuruli, Tal: Khed, Dist. Pune -410501 (India) Tel. :+91-9922908401/2/Three/Four Fax: +91-2135-261200 www. anandgroupindia. com 1.
Capital Employed – $ 43 Million 2. Web Fastened Property – $ 31 Million Three. Main Merchandise- Shock Absorbers, Strutsand Entrance Forks. Engine Bearings. Four. HQ Location- Delhi 5. Established – 1961 2. 1. 1Brief historical past of Gabriel:- 1997 : Began Plant for OE Passenger automobile shocks 1998 : HMI, Tata Motors & Ford India enterprise began 1999 : Toyota Kirloskar enterprise began (Qualis) 2000 : Acquired certification for QS 9000 by BVQI 2001 : HM enterprise began (Lancer) 2003 : Acquired certification for ISO 14000 2003 : Acquired certification for OHSAS 18000 2003 : Maruti enterprise began 003 : Acquired certification for TS 16949 by BVQI 2003 : Acquired certification for Ford. 2004 : GMI enterprise began. 2. 1. 2 Mission of the Firm:- The mission assertion of Gabriel is:- “To champion and speed up studying by offering world-class technical and managerial answer and act because the hub for switch of studying all through the group. ” Fundamental philosophy behind that’s “Enhance of worth contribution & buyer satisfaction” which suggests elimination of non worth added actions and emphasis on worth stream mind-set quite than the standard practical mind-set. 2. 1. Three Brand of the Firm:- pic] 2. 1. Four Location of the manufacturing: – Firm has six branches in India. It’s as follows. • Pune. • Dewas. • Hosur. • Parwnaoo (Himachal Pradesh). • Nashik. • Gurgoan. 2. 1. 5 Manufacturing capability:- 1) Struts 1. 5 Million items every year. 2) Entrance Forks 1. 5 Million items every year. Three) Shock Absorbers 10. zero Million unit every year. 2. 1. 6 Certification of the Firm:- 1:-ISO9002 – Nashik, Hosur, Parwanoo. 2:-ISO14001 – Hosur, Dewas, Pune. Three:-QS9000 – Hosur, Dewas, Nashik. Four:-ISO16949 – Hosur, Pune, Dewas. 5:-OHSAS 18001 – Hosur, Dewas, Pune. 2. 1. 7 Experience management world product vary. |Twin tube shocks (gasoline). | |Twin tube shocks (non-gas). |Mono tube shocks. | |Spring seat shocks (semi-strut). | |Cab suspension damper. | |Steering damper. | |Strut cartridges. | |McPherson struts. | |Self leveling shocks. | |Energetic suspension. | |Suspension nook module. | 2. 1. 7 Gabriel Pune [pic] 2. 2Product profile:- [pic] [pic] 2. Three Organizational chart :- Deep C Anand Basis Mr. S. G. Kulkarni (D. G. M finance) Mr. A. Vispute Mr. S. Das (Sr. supervisor) Supervisor) Mr. M. Dalal Mr. S.
Agnihotri Mr. A. Mane Mr. T. J. Kadam (A. M) (A. M) (A. M) (A. M) Miss. Harivanda Mr. A. P. Doke (Asst. ) (Officer) Mr. R. M. Wadekar Mr. M. D. Pardeshi Three. 1 TOPIC UNDER STUDY Three. 1. 1 Theoretical background :- 1) Journey of Central Excise. 2) Central Excise Act 1944. Three) Central Excise Guidelines 2002. Four) Cenvat Credit score Rule 2004. ) Registration process of central excise. 6) E. R. 1 type, Assessment and format. Three. 1. 2 Journey of Central Excise. Accessible historic proof on the organized types of commodity taxation reveals that responsibility on two commodities – salt and liquor – was levied throughout flourishing Mauryan interval (5% to 10%). Throughout Mughal interval, tax on manufactured items was prolonged to indigo, cotton, cleaning soap, edible oil, tobacco and salt. Early British Rule imposed responsibility on dairy merchandise, handlooms, leather-based merchandise. Iron and metal. Excise, as we perceive it right now, was 1st launched on cotton yarn in 1894, primarily to examine exports of Indian textiles to USA, China, Japan and Hong Kong.
Subsequently, excise internet was widened and it was imposed on motor spirit (1917), kerosene (1922), Silver (1930), Sugar and matches (1934). Extra objects have been coated beneath excise in 1943. Growth of Excise Regulation Initially, separate Act was once launched for every commodity. Thus, by 1944, there have been 16 every enactment. All these have been consolidated and a consolidating Act was handed in 1944(which remains to be in pressure). The consolidated act included numerous objects referred to as Tariff Objects (TI) – like Sugar (TI-1), Espresso (TI-2), Tea (TI-Three) and many others. An increasing number of objects have been added every year, often on the time of Finances. Lastly, residual merchandise – referred to as Not Elsewhere specified (NES) (TI-68)-was launched w. e. f. 1-Three-1975. Thus, successfully, all objects have been coated.
Responsibility on TI – 68 was 1% to start with, which was raised in levels to 12%. Central Excise Tariff :- Since tariff merchandise have been added occasionally, the association and sequence of every was not tariff merchandise was not scientific and logical as objects have been added within the Schedule to central Excise Act occasionally. In the intervening time, Worldwide Requirements have been developed for classification of products and Customs Tariff in India was revised to fall in keeping with Worldwide Requirements for classification. Excise tariff was additionally revised and Central Excise Tariff Act, 1985 was introduced into impact from 1-Three-1986. Thus, solely 15 commodities have been coated in 1944, in opposition to over 1,300 commodities coated in 1994.
MODVAT in 1986 :– Modvat was launched w. e. f. 1-Three-1986, to keep away from cascading impact of taxation. Protection of MODVAT was elevated over a time period and now many of the inputs (besides a couple of), are eligible. MODVAT was prolonged to capital items and petroleum merchandise in March 94. (MODVAT was renamed as CENVAT w. e. f. 1-Four-2000) Different landmarks – till 1938, excise duties have been administered by provincial (Now referred to as State) Governments. Central Excise and Salt Income Division was established in 1938. Adjustments in current instances:- Some necessary modifications in current instances are as follows: 1-Four-2000 – Fundamental Excise Responsibility can be 16%on nearly on all commodities.
Branded items manufactured by SSI in rural space can be exempted from responsibility. 1-Four-2000 – Modvat was renamed as Cenvat. New Cenvat guidelines 57 AK launched Responsibility cost on fortnightly primary, as a substitute of at each time earlier than clearance. 1-7-2000 – All statutory data abolished. Division will depend on non-public data of assessee. New Valuation part Four and new Valuation guidelines launched. 1-7-2001- New Central Excise Guidelines made efficient and earlier Central Excise Guidelines, 1944 scrapped. Many procedural simplifications made. September, 2001 – CBE&C launched ‘New Central Excise Handbook, 2001’ and ‘Customized Handbook, 2001’. Principally, these are consolidation of many earlier commerce notices, public notices and CBE&C circulars.
As well as, basic details about customs and excise regulation is contained in these handbook. 9-7-2004 – Introduction of Schooling Cess @ 2% of responsibility or tax, Textile Articles virtually out of excise internet. 10-9-2004 – Integration of Cenvat Credit score of Excise responsibility on items and repair tax. Credit score is inter-changeable. 1-1-2005 – Service tax on Items Transport Company. Tax payable by consignor/consignee paying freight. 28-2-2005 – Central Excise Tariff transformed from 6 digits to eight digits. 1-Three-2006 – AED (GSI) absolutely exempted. SED merged with primary excise responsibility. 13-7-2006 – division can provisionally connect property of an individual to whom present trigger discover has been served (part 11DDA of CEA). Fundamental process in Central Excise
As per part 6 of CEA, registration is required to be obtained by (a) each producer or producer of excisable items that’s items laid out in first and second schedule to central excise tariff act (b) wholesale buy or sale or storage of any specified items included in first or second schedule of central excise tariff act. As per rule 9 of Central Excise Guidelines, each one that produces, producers, carries on commerce, holds non-public retailer room or warehouses or different sensible makes use of excisable items shall get registered. The rule additionally in any other case Board to situation notification (a) specifying situations and procedures for registration and (b) grating exemption to individual or class of individual from provisions registration. Registration is obligatory as each part 6 of CEA and rule 9(1).
It has been clarified that registration granted in earlier outdated rule 174 can be valued beneath new guidelines. Three. 1. Three Central Excise act 1944 (sec 40) That is the primary act which gave the facility to excise officer for provision of accumulating the excise or taking motion of arrest, penalty, Valuation. Nature of Excise Act The essential situation for levy of Excise Responsibility:- 1) The responsibility is on items. 2) The products have to be excisable. Three) The products have to be produced or manufactured with help of energy. Four) Such manufacturing have to be in India. 5) Items have to be movable and marketable. Three. 1. Four Central Excise Guidelines 2002 Rule 1:-Brief title, extent and graduation. Rule 2: – Definition of. Act • Assessment • Assesses • Board • Responsibility • Notification • Tariff act • Warehouse Rule Three: – Appointment and jurisdiction of central excise officer. Rule Four: – Responsibility payable on removing. (Molasses) Each one that produce or manufacture any excisable items, or who retailer such items in a warehouse, shall pay the responsibility livable on such items within the method offered within the rule Eight beneath any regulation, and no excisable items, on which any responsibility is payable, shall be eliminated with out cost of responsibility from anywhere, the place they’re produce or manufactured, or from a warehouse, except in any other case offered. Rule 5: – Date for dedication of responsibility and tariff valuation.
If any excisable are used throughout the manufacturing facility, the date of detachable of such shall imply the date on which the products are issued for such use. Rule 6: – Assessment of responsibility. The assessee shall himself assess the responsibility payable on any excisable items. Rule 7: – Provisional Assessment. The Helpant Commissioner of central excise or the deputy commissioner of central excise, as could also be required for finalizing the Assessment, the is accessible, however inside a interval not exceeding six months from the date of the communication of the order issued beneath sub rule (1). Rule Eight: – Method of cost. The responsibility on the products faraway from the manufacturing facility or the warehouse throughout a month shall be paid. Rule 9:-Registration.
Any one that produces, manufacture, carries on commerce, holds privet store-room or warehouse or in any other case makes use of excisable items, shall get registered. Rule 10:-Day by day inventory account. All such data shall be preserved for a interval of 5 years Instantly after the monetary 12 months to which such data pertain. Rule 11:-Items to be eliminated on bill. No excisable items shall be faraway from a manufacturing facility or a warehouse besides beneath an bill singed by the proprietor of the manufacturing facility or his approved agent and within the case of cigarettes, every such bill shall even be countersigned by the inspector of central or the superintendent of central excise earlier than the cigarettes are faraway from the manufacturing facility. Rule 12:-Return to submitting
Offered that an assesses manufacturing pan masala failing beneath tariff merchandise 21 06 90 20 or pan masala containing tobacco failing beneath tariff merchandise 24 09 99 90, shall additionally file, together with the return ,for the month which the stated return relates, an announcement summarizing Rule 13: – Export with out cost of responsibility. • Any excisable items could also be exported with out cost of responsibility from a manufacturing facility of the producer or the manufacture or every other premises, as could also be accepted by the commissioner. • Any materials could also be eliminated with out cost of responsibility from a manufacturing facility of the producer or the every other premises, to be used within the manufacture or processing of the products that are exported, as could also be accepted by the commissioner. • The export beneath sub rule (1) or sub rule (2) shall be topic to such situations, safeguards and process as could also be specified by notification by the Board. Rule 14: – Warehousing provision. The central authorities could also be notification, lengthen the power of removing of any excisable items from the manufacturing facility of manufacturing to a warehouses to a different warehouses with out of cost responsibility. • The power beneath sub-rule (1) shall be obtainable topic to such situation, together with penalty and curiosity, limitation with respect to the interval for which the products could stay within the warehouse and safeguard and process together with within the associated to the dispatch, motion, receipt, accountable and disposal of such items could also be specified by the Board. Three. 1. 5 Cenvat credit score rule 2004. (rule 16) Dated 10/9/2004 amended. Authorities appointed Dr. Vijay Kelkar for recommending tax reforms and as a part of the report. Union finances 2003-2004 clearly suggestion of Kelkar committee have been accepted.
A brand new rule 12 A was inserted vide notification no: 19/2006, dated 30/09/2006. which offers with the process and services for big tax payer, notably just about the next points. 1) Removing of enter or capital items by a big tax payer by a switch challan/bill. 2) Switch of cenvat obtainable with one of many items of the massive taxpayer to his different registered premises by a switch challan. Cenvat credit score rule offers with as follows items, Guidelines 1 :- Capital items • All items failing beneath chapter 82,84,85,90 heading no 68. 02. • Air pollution management tools. • Part, spares and equipment of the products. Specified (1) (2) above. • Moulds and dies, jigs and fixtures. Refractory and materials. • Tubes and pipes and becoming. • Storage tank. Be aware:-office tools and equipment in an trade and therefore credit score can’t be legitimate. Guidelines 2 :- Inputs All items and uncooked materials Besides gentle diesel oil, excessive pace diesel oil and motor spirit, generally generally known as petrol and motor autos, used for offering any output service. Rule: – Three A producer or producer of ultimate merchandise or a supplier of taxable service shall be allowed to take credit score. • The responsibility of excise of specified within the first schedule to the Excise Tariff Act, livable beneath the excise act. • The responsibility of excise specified within the second schedule to the Excise Tariff Act. The training cess on excisable items beneath part 91. Rule:-Four Situation for permitting CENVAT credit score. The cenvat credit score in respect of inputs could also be taken instantly on receipt of the inputs within the manufacturing facility of the producer or within the premises of the supplier of output service. Rule: – 5 Refund of CENVAT credit score to items in specified areas. For the needs of this rule, “responsibility” means the duties specified within the sub rule (1) of rule Three of those guidelines. Rule: – 6 Obligation of producer of dutiable and exempted items and supplier of taxable and exempted providers. Rule: – 7 Distribution of credit score on inputs by the workplace or every other premise of output service supplier.
A supplier of output providers shall be allowed to take credit score on inputs and capital items obtained on the premise of an bill or a invoice or a invoice a challan issued by an workplace or premises of the stated supplier of output service, which receives bill, issued by way of the supply of the central excise guidelines, 2002, in direction of the acquisition of inputs and capital items. Rule: – Eight Storage of inputs exterior the manufacturing facility of the manufacturing. Rule: – 9 Paperwork and accounts. (1) An bill. (2) A supplementary bill. (Three) A invoice of entry. (Four) A certificates issued by an appraiser of customs in respect of products imported by a Overseas Put up workplace. Rule: -10 Switch of cenvat credit score. Rule: – 11
Particular dispensation in respect of inputs manufactured in factories situated in specified areas of North East area, Kutch district of Gujarat, state of Jammu and Kashmir and state of Sikkim. Rule: – 12 Energy of central authorities to inform items for deemed cenvat credit score. Rule: – 13 Restoration of cenvat credit score wrongly taken or erroneously refunded. The place the cenvat credit score has been taken or make the most of wrongly or has been erroneously refunded, the identical together with curiosity shall be recovered from the producer or the supplier of the output service and the supply of part 11A B of the excise act or part 73 and 75 of the finance act. Rule: – 14 Supplementary provision.
Any notification, round, instruction standing order commerce discover or different order commerce issued beneath the Cenvat Credit score Rule 2002, by the Central Authorities, the central board of excise and customs, the chief commissioner of central excise, and in fore of the graduation of those guidelines, shall, to the extent it’s related and in line with these guidelines, be deemed to be legitimate and issued beneath the corresponding provision of those guidelines. 6. Registration process of Central Excise As per part 6 of CEA 1944, Registration is required to be obtained by (a) each producer or producer of excisable items that’s items laid out in first and second schedule to central excise tariff act b(b) wholesale buy or sale or storage of any specified items included in first or second schedule of central excise tariff act.
As per rule 9 of central excise guidelines, each one that produces, producers, carries on commerce, holds privet retailer room or warehouses or different sensible makes use of excisable items shall get registered. The rule additionally in any other case Board to situation notification (a) specifying situations and procedures for registration and (b) grating exemption to individual or class of individual from provisions registration. Registration is obligatory as each part 6 of CEA and rule 9 (1) use the world shall. It has been clarified that registration granted in earlier outdated rule 174 can be valued beneath new guidelines. 1. Utility for registration:- Earlier than beginning manufacturing of excisable items or dealership for the aim of issuing bill to cross Cenvat credit score, registration ought to be obtained.
The Utility Varieties specified for this goal are given in Annexure (Type A1 for all individuals besides sure textile processors/cheroot producers). Separate Varieties A2 is prescribed for registration of Energy loom Weavers/Hand processors/ sellers of yarns and materials and producers of readymade clothes. Type A3 is the appliance for registration specified for producers of hand – rolled cheroots tobacco falling beneath sub – heading 2402. 00 of Central Excise Tariff. The appliance ought to be submitted in duplicate to the jurisdictional Deputy/ Asst. Commissioner of Central Excise. An attested copy of everlasting Account Quantity (PAN) allotted by Earnings Tax Division ought to be enclosed with the appliance.
Beneath the New Central Excise Registration Process for Energy loom Weavers/Hand processors/ sellers of yarns and materials and producers of readymade clothes, the C. B. E. and C. by Round No. 708/24/2003- CX, dated 23-Four-2003[2003(153) E. L. T(T63)], requested departmental officers to situation registrations even when PAN isn’t obtainable. 2. Registrations Certificates:- The Registrations Certificates in prescribed format [Form RC-Annexure-2] can be issued inside seven days. Usually, RC may be obtained throughout the desk on the date of utility itself. Verification of the premises can be made later. Three. Everlasting nature of RC:- Registrations Certificates, as soon as issued, is everlasting besides when it’s suspended or revoked. RC isn’t required to be renewed. Four. No charge for Registration:-
Registrations Certificates is issued freed from cost and there’s no charge prescribed for a similar. 5. Similar type for intimation of modifications:- The identical utility type is for use for intimating any change within the info furnished initially on the time of making use of for Registrations Certificates. Manufacture of latest or extra merchandise needn’t be intimated. 6. Switch of Enterprise:- Excise registration is premises-specific. However it’s non-transferable and therefore, when the enterprise is transferred to a different individual by means of sale or lease, the taking on the enterprise (transferee) ought to take recent registration on this identify. 7. Change within the Structure:-
If the entity holding Central Excise Registration is a agency or firm or affiliation of individuals, any change within the constitutions ought to be intimated to the involved Central Excise Officer inside 30 days. Eight. De- Registration:- If the enterprise isn’t carried, Registrations Certificates ought to be surrendered to the superintendent of Central Excise. A declaration specified for this goal [Annexure-3] ought to be given whereas surrendering RC. 9. Quoting RC Quantity:- The PAN- based mostly Excise registration quantity is required to be printed on high of all Central Excise invoices, responsibility challans, PLA & different Varieties /paperwork. Textile items coming into Excise fold for the primary time can clear their items and pay responsibility pending grand of registration. 10. Revocation or suspension of registration:-
For contravention of provisions of Central Excise Act, 1944/ Central Excise Guidelines, 2002 and different specified offences, RC may be suspended or revoked by the deputy/Helpant Commissioner. As there are separate penal provisions to deal with numerous infractions, that is seldom resorted to. Three. 1. 7 Assessment and element of Excise Return Type: – Excise Return (E. R. -1) type :- Excise Return (E. R. -1) type is an important doc of excise return. Rule 12 of the Central Excise Guidelines, 2002 and rule 9(7) of CENVAT Guidelines, 2004. Every E. R. 1 type have two copies one is unique and different is duplicate this doc use for return of excisable items and availment of cenvat credit score for the month.
Consists of particulars of the manufacture, clearance and responsibility payable additionally element of products merchandise code, registration quantity, identify of the corporate, tackle, amount manufactured, and amount cleared assessable worth and many others. E. R. 1 type has particulars about primary excise responsibility 14%, training cess 2% and secondary and better training cess. Connected all detailed worth, merchandise code quantity, description and likewise element of cenvat credit score availment and utilized. E. R. 1 type has particulars about cenvat enter items, cenvat capital items, and cenvat service tax. The next factors are embody in cenvat credit score availment and utilized. • Credit score on manufacture bill. • Credit score taken on Sellers invoices. • Credit score taken on capital items. • Credit score taken on enter providers. • Credit score taken on imported capital items. Credit taken from inter unit switch of credit score by a big taxpayer. E. R. 1 type embody Self Assessment memorandum, acknowledgment and lastly approved signature and identify. Three. 1. Eight CENVAT Credit score Course of:- (1) Cenvat credit score is allowed to offset responsibility legal responsibility on closing product providers. Therefore, as per rule, Cenvat credit score isn’t allowed on amount of inputs and enter service used solely within the producer of exempted items/ providers. If cenvat credit score is availed on inputs and enter providers used within the manufacture or rendering of each dutiable and exempted items or providers, 10% of whole value (excluding gross sales tax and different taxes if any paid) shall be paid.
The output service supplier shall make the most of credit score solely credit score solely to the extent of an quantity not exceeding 20% of the quantity of service tax payable or taxable output service. Now sub-rule (3A) in Rule 6 Vide Notification No. 10/2008-C. E. (N. T. ), dated 1-Three-2008. (w. e. f. 1-Four-2008) gives for reversal of credit score attributable to the enter and enter providers used within the manufacture of exempted items as per the prescribed within the stated rule. (2) The situation of 10% cost isn’t relevant if separate accounts of receipt, consumption and stock of such inputs or enter service are maintained cenvat credit score is taken on that amount of inputs and enter providers used within the manufacture of dutiable items/ taxable service solely.
In respect of sure specified providers, such restriction doses not function. Thus credit score is allowed on the service tax pay with out the requirement of sustaining separate accounts to consulting engineer, architect, and inside decorator, administration advisor, actual property agent, commissioning and instillation service, technical inspection and certification service, industrial or industrial building service safety, safety company, scientific or technical consultancy, banking and monetary providers, life insurance coverage providers, technical testing and Assessment service, upkeep or restore service and mental property service, if these or not used solely for offering exempted output providers.
Within the case of basic insurance coverage service, when each taxable and exempted providers are offered, an elective scheme, make the most of Cenvat credit score attributable to inputs/ enter providers utilized in offering taxable providers, has been offered. (Three) For manufactured of sure specified exempted items producer shall pay an quantity equal to Cenvat credit score attributable to inputs and enter providers utilized in or in relation to fabricate of such closing merchandise. These merchandise are: A – Items falling inside heading No. 2207 of the First Schedule to the Tariff Act; (Ethyl alcohol and different spirits, denatured, of any energy); B – Low sulphur Heavy Inventory (LSHS) used within the technology of electrical energy; C – Naphtha (RN) used within the manufacture of fertilizer; D -. Newsprint, in rolls and sheets, falling inside heading No 48. 1 of Central excise tariff; E – Last merchandise failing inside chapters 50 to 63 Central excise tariff; F – Naphtha (RN) furnace oil used for technology of electrical energy; G – Items provided to protection initiatives or to the Ministry of Protection for official functions, beneath any of the required notifications; H – Liquefied Petroleum Gases (LPG) falling inside merchandise 27111200, 2711300 and 27111900 of the stated First Schedule; I – Kerosene for final sale by Public Distribution System. If the above producer isn’t adopted the assessee can be liable not just for restoration beneath Rule 14 of Cenvat Credit score Rule, 2004, but in addition for curiosity penalty. (Four) Quantity of Eight% paid (now 10% beneath Rule 6) whereas clearing non-dutiable items and realized from clients was held as not recoverable beneath part 11D of Central Excise Act, 1944 – Unison Metals Ltd. V. commissioner, 2006 (204) E. L. T. 323(Tri. -LB).
But when the quantity was collected in respect of dutiable items, the identical Bigger Bench judgment says, actual id of the quantity collected isn’t related for part 11D; whether or not the gathering ‘represented responsibility’ of excise alone is related. (5) As per new situation “(d)” in Rule 6(Three), the output service supplier within the case of basic insurance coverage service has to intimate the choice in writing to make the most of Cenvat attributable to inputs and enter providers in offering taxable output providers to the Vary Superintendent, giving prescribed particulars. The choice as soon as exercised can’t be withdrawn throughout the remaining a part of the monetary 12 months. (6) Credit score isn’t admissible on capital items used solely in manufacture of exempted items/rendering of exempted providers. 7) Beneath Rule 6 (Three), no distinction is to be made between supposed closing product and unintended emergency of by – product – 2007 (208) E. L. T. 25(Tri. -LB) – Rallies India Ltd. v. CCE. (Eight) The substantive provisions of Rule 6 as comprise in sub-rule (1),(2) and (Three) shall not apply for exempted items cleared both to :- ? SEZ Unit, ? 100% EOU, ? EHTP,STP unit, ? United Nations or an Worldwide Group for his or her official use or provided to initiatives listed in Notification No. 108/95 – C. E. , or ? For export beneath bond beneath Rule 19 of the Central Excise Guidelines, 2002. [ C. B. E. & C. circular No. 785/18/2004 – CX. , dated 17-5-2004 – 2004 (167) E. L. T. T35] ?
Gold or Silver arising in the middle of manufacture of copper or zinc by smelting, or, All items that are exempt from the essential duties of Customs and the extra responsibility (C. V. D. ) when imported into India and provided in opposition to Worldwide aggressive bidding by way of Notification No. 6/2006 – C. E. 2. KEY ANALYSIS & DATA PRESENTATION Three. 2. 1 EXCISE DATA OF THE COMPANY :- Monetary spotlight of the interval 1st April 2004 to 31st March 2008 A. Worth of clearance items. |S. R. |Particulars |2004 – 2005 |2005 – 2006 |2006 – 2007 |2007 – 2008 | |1 |Home clearance |774200060 |1001839000 |1024535335. 87 |761355812. zero | |2 |Scrap |2990434 |4460621 |4406276 |3947935 | | | | | | | | |Three |Export clearance |11270 |2740620 |5150444 |1958831 | |Four |Different |26581926 |29447903 |8895151. 08 |00. 00 | |5 |Complete clearance |803783690 |103783690 |1042987207. 15 |767262578. 50 | B. Central excise responsibility. |S. R. Particulars |2004 – 2005 |2005 – 2006 |2006 – 2007 |2007 – 2008 | |1 |Fee in PLA |48740016 |53681491 |41367098 |26186202 | | | | | | | | |2 |Fee by cenvat credit score |90119634 |112750237 |169196919 |100193615 | | | | | | | | | | | | | | | |Three | Complete |138859650 |166431728 |210564017 |126379817 | | | | | | | | | | | | | | | C. Cenvat credit score taken. |S.
R | Particulars |2004 – 2005 |2005 – 2006 |2006 – 2007 |2007 – 2008 | |1 |On capital items |4958440 |4773122 |8147200 |7764147 | | | | | | | | |2 |On enter items |87752967 |109226355 |153488966 |86673644 | | | | | | | | |Three |On enter providers |165307 |311808 |4044501 |3008152 | | | | | | | | | | | | | | |Four | Complete |91776714 |114311285 |165680667 |97445943 | | | | | | | | | | | | | | | Passenger automobiles in India- Share of Enterprise The next chart reveals market share of Gabriel India ltd. Conclusion:- The above pie chart reveals Gabriel is the large producer within the India which produces automotive parts. Gabriel coated about 63%manufacturing and different corporations coated solely 37%.
It’s indicating Gabriel crucial firm for the Indian vehicle sector. Central excise paid by Gabriel: (Fee in PLA, cost by cenvat credit score) The next chart reveals cost by private ledger account and cenvat credit score. Conclusion:- The above chart reveals central excise cost by private ledger account and cenvat credit score. Cenvat credit score is an important component of excise. As per above chart firm paid repeatedly excise from private ledger account and repeatedly progress in cost of responsibility. Complete excise cost of Gabriel (from 2001 to 2008) The next pie chart reveals excise cost of Gabriel India ltd. ll cost reveals in parentage from 2001 – 02 to 2007 – 08 [pic] Conclusion :- The above chart reveals yearly improve the overall worth of excise clearance, which means Gabriel have incessantly progress and likewise paid the responsibility frequently. Cenvat credit score taken :- The next bar graph reveals cenvat credit score taken by Gabriel India ltd. The next worth reveals Capital items, Enter items and Enter Companies. [pic] Conclusion :- The above hart reveals worth of Capital items, Enter items and Enter Companies in graphically. As per above chart enter items is one most necessary items for cenvat credit score and huge dedication for cenvat credit score. Capital items and enter providers coated very small space of cenvat credit score. | |[See rule 12 of the Central Excise Rules, 2002 and rule 9 (7) of CENVAT Credit Rules, 2004] | | | | | | |Massive Taxpayer unit opted for (Identify of Metropolis) | | | | | | | | | | | | | | | | | |Identify of the assessee | | | 29-Mile Stone Pune – Nasik Freeway | | | | | | |Village Kuruli, Pune-410501 | | | Three.
Particulars of the manufacture, clearance and responsibility payable: | | | | | | | | |1 |Motor Car components & Equipment : Shock |8708. 00 | | 14 % | | |Absorber & Struts / Kits/Tube | | | | | | | |- | | |2 |Instruments & Dies |8207. 00 | – |14 % | |Three |Waste & Scrap of Metal |7204. 90 | – |14 % | 2. Record of the principal inputs and capital items utilized by the assessee.
A) Inputs :- 1) MS Metal Tubes 2) Vibrant Bar Three) Sintered components. B) Capital Items: – As per Annex- G. Four. Transient particulars of the income for the record three years within the Performa given under. |12 months. |Complete responsibility paid |Complete responsibility paid by CENVAAT | Complete responsibility | | |PLA |Inputs Cap. Items | | | | | |cost | | |(In Rs. ) |(In Rs. ) | | | | | |(In Rs. | | | | Inputs /Cap. Items | | |2002-2003 |28871497 |42919868 / 3224062 | 75015427 | |2003-2004 |39091938 | 61721263 / | 104876428 | | | |4063257 | | |2004-2005 |48740016 | 86010192 / 3369064 | 138119272 | C. SUMMARY OF AUDIT RESULTS Date of preparation 22. 09. 2002 W/P No_____________ Present a top level view of all objections , which contain quick/non levy/assortment of Responsibility, quantity (say beneath Sec. 1D), irregular availment / utilization of credit score, Irregular cost of refund and non -payment of curiosity due. Particulars of objection Of technical /procedural in nature with out involving income / credit score / curiosity /quantities also needs to be talked about . Point out whether or not the assessee has agreed to the objection and in that case , has made spot cost (in that case particulars thereof). D. PRELIMINARY OR DISK REVIEW: Date of preparationW/P No_____________ 1. Give causes for collection of the unit for audit this time (as knowledgeable by Planning Cell) The Firm has paid Central Excise Responsibility between 1 to 2 crores by PLA for the final three years; subsequently in keeping with the CBEC letter F.
No. 598/35/2001-CX DT. 09. 11. 2001, the corporate has been chosen for EA-2000 Audit, beneath new commonplace audit programmer 2. The auditor ought to examine whether or not the Assessee Grasp File (discuss with in Annexure A and B of New SAP) is accessible in IAD and whether or not the identical is full. If not the auditor ought to full the identical as for as potential from the data obtainable within the workplace. Undergo the data obtainable in Assessee Grasp File. Determine and point out (with justifications), the areas or points these advantage verification throughout the conduct of audit (refer Para Three. Four. 2 of New SAP) No Assessee Grasp File has been maintained in IAD.
Nonetheless, now it’s being ready. (i) Acquire and research different paperwork illustrated in para Three. Four. 2 and Annexure G of New SAP and conduct examination as illustrated in Annexure D of New SAP. Record Out the paperwork studied. 1) Steadiness Sheet 2) Clearances for final three years Three) Classification record Four) Modvat Declaration (ii) Determine and point out (with justifications), the areas or points these advantage Verification throughout the conduct of audit (refer para Three. Four. 2 of New SAP). Within the steadiness sheet for the 12 months 2003-04 it’s observe that the corporate has proven Different revenue Rs. 50,163,700/- the element of the identical are required to be verified (See Annexure “A”) Three.
Work out sum of the necessary monetary ratios as talked about in para Three. Four. Three and Annexure C of New SAP. Point out the necessary indicators which require detailed Verification throughout the conduct of audit. From the steadiness sheet for the 12 months 2000-01 & 2001-02 it’s noticed that the corporate haven’t taken any time period mortgage from financial institution however throughout the 12 months 1996-97 the corporate has taken time period mortgage from ICICI, SBI Patiyala, Deutche financial institution for set up an of plant in addition to buy of belongings. Additional the corporate has not taken main advances from their clients. Four. Point out expenses within the regulation and charges of responsibility pertaining to the merchandise manufactured and inputs since earlier audit.
There isn’t any change in charges of responsibility for merchandise manufactured and inputs since final audit. 5. Point out particulars of Anti-evasion instances booked in current previous or are in progress and Previous audit objections, which haven’t been settled thus far by means of assessee acceptance, Adjudication, appeals and many others. No anti-evasion instances booked in current or previous, Audit objections are pending associated to service tax on Tech. understand how and clearance to Sister Unit, Non cost of curiosity on price escalation expenses 6. Commentary of the Auditor on every other situation rising throughout Desk Overview. E. GATHERING AND DOCUMENTIING SYSTEMS INFORMATION INTERVIEWS Date of preparation: 16. 09. 2 to 18. 09. 02W/P No_____________ Individual (s) Interviewed, their designation and dates of interview. |Individual |Designation |Date of interview | |Mr. Sanjay Agrawal |Sr. Supervisor, Finance | | |Mr. B. Rao |Sr. Supervisor Manufacturing | | Whether or not the assessee’s as submitted record of all paperwork maintained in respect of things talked about beneath Para Three. Four. 7 of New SAP. Sure the assessee has submitted the record of all paperwork i. e.
Trial steadiness, Steadiness Sheet, revenue & loss account, Gross sales tax returns, Earnings tax returns, Buy & Gross sales ledger Give the gist of interviews particularly in respect of i) associated ventures , enterprise with these ventures and annual quantity of such Transactions, ii) relationships with the unit and its homeowners/shareholders , iii) the pinnacle workplace /registered workplace of the unit , location of its operations and site of its accounting data Head Workplace/Factory: Kuruli, Pune- Nasik Freeway, Tal -Khed, Dist-Pune. iv) whether or not Firm is an ancillary unit or impartial unit of productions: It’s an impartial Unit. v) Any organizational or methods modifications that has occurred since final audit CENVAT TO PLA RATIO (in 00zero) 12 months |PLA |CENVAT |Ratio | |2003-04 |39092 |65785 |37:63 | |2004-05 |4874 |89379 |35:66 | Excise Responsibility to Turnover Ratio (in 00zero) |12 months |Excise responsibility |Turnover |Ratio | |2003-04 |104877 | | % | |2004-05 |138119 | | % | AUDIT PLAN: (Please see para Three,Four,22 to three,Four,24 and Annexure J of NEW SAP) Date of preparation 14. 01. 2006 W/P No_____________ Audit Plan accepted by___________ ) The Audit Plan have to be based mostly on the problems recognized within the earlier stops as to be verified throughout the conduct of audit and have to be particular within the following format(additionally given in Annexure J of New SAP) |Srno |Topic No |Particular situation |Supply Doc |Discipline Doc |Protection Interval |Choice |Verification | | | | | | | |Standards |Paper No | |1 |Capital items |Credit score availed on |1. Bill |1)buy register|December, |Firm | 1 | | | |capital items & | |/ |2001. |Availed | | | | |set up |2. RT 12 |order | |Credit score in | | | | | | | | |Capital items of | | | | | |Three. Balnce |2) Asset | |Rs. lakhs for | | | | | |sheet |Register, | |the month of Dec. | | | | | | | | |2001. | | | | | |Four. Supply |Three)Installatn | | | | | | | |Challan |certificates | | | | | | | | | | | | | | | | |5.
Cenvat A/c |Four)Gate | | | | | | | |Register. |register | | | | | | | | | | | | | | | | | |5) Subject slip | | | | | | | | | | | | | |2 |Credit score on enter|Credit score availed on |1). Export |1).
Buy |November, 2001. |Firm has |2 | | | |inputs of |Invoices |Register, | |availed CENVAT | | | | |utilization |2). RT 12 |2) Buy | |Credit score of | | | | | |Three). Steadiness |order, | |Rs. 62 lakhs | | | | | |sheet |Three) Gate | |On enter for the| | | | | |Four).
CENVAT A/c |register, | |month of Nov. | | | | | |register |Four). Subject slip | |2001 and March | | | | | | |5) Inventory | |2002 | | | | | | |assertion. | | | | |Three |Export |Export beneath bond |1). RT 12 |1). Buy order,|August, 2001, |Firm has | Three | | | |/ rebate |2). ARE I |2)..
Delivery | |exported | | | | | |Three) Bill |invoice | |excisable product| | | | | |Four). UT1. |Three).. Supply | |beneath UT | | | | | |5) RG1 |challan | |amounting to Rs, | | | | | | |Four). Packing slip, | |30012993 | | | | | | |5).
Proof of | | | | | | | | |export, | | | | | | | | |6) Gross sales register. | | | | |Four |Waste and scrap|Clearance of metal|1). RT 12 |1). Steadiness sheet. |March 2002 |Firm has | Four | | |of metal |scrap |2). Bill, |2). Gross sales register,| |cleared most | | | | | |Three). Supply |Three).. Tender copy, | |metal scrap in | | | | | |challan, |Four).
Weight | |March 2002 | | | | | |Four). RG1 |slip, | | | | | | | |5) Prodn. Clearance |5) Gate register | | | | | | | |Assertion for | | | | | | | | |2001-02 | | | | | |5 |Consulting |Expenditure on |1). Settlement |1).
RBI Permission |1997-98 |1997-98 onwards | 5 | | |Engineer |technical know-how|2). Steadiness |2). Get together |Onwards |to August 2002 | | | | |i. e. |Sheet |Ledger, | | | | | | |Consulting | |Three) Fee | | | | | | |Engineer | |explicit | | | | EXECUTIVE SUMMARY The mission titled as “STUTY OF EXCISE DUTY PAYMENT BY GABRIEL INDIA LTD” Was achieved at Gabriel India Ltd Pune.
Oblique tax is the some of the monumental supply of fund assortment of the Indian authorities which aids to growth bills and different points. Central excise is one points of fund/income assortment. Number of the subject is likely one of the necessary points of our mission. Because it determined the plan of action, to be adopted. The subject chosen ought to be such that it helps in understanding the excise idea clearly, as was given the subject by the corporate itself. The mission relies on the Complete excise paid by firm additionally its registration process, cenvat credit score taken, E. R. 1 type and numerous guidelines. The aims of this mission was – 1) To check process of central excise registration. 2) To check E. R. 1 type of central excise. ) To check numerous rule of the central excise. Four) To check journey of Cenvat credit score. 5) To check means of Cenvat credit score taken. 6) To the research drawbacks of central excise. The central excise tax some of the necessary points. Each manufact
