Why is Excise not self assessed for Cigarettes ?

Originally posted by : Ankit
	Hi Can someone please help with the case name after and due to which cigarettes are not self assessed for excise ? Thanks

  RULE 6 of CER,2002 says in case of cigrattes  SCE/ INPECTORSHALL ASSESS THE DUTY

cigarattes are removed  after  Self Assessment  by Inspector  unlike other goods.  I think this stringent act would have been done after ITC'SCase  since the company colluded with retailers and sold at a price more than the MRP i.e  more than the price printed on the cigaratte packets

I think that self assessment is not allowed in case of cigarettes because Centrasl Govt. gets a major chunk of its excise revenues from cigarettes.(On each pack of 10 cigarettes C.G. gets roughly Rs. 2-3 as excise duty). So to maintain control separate inspector is appointed.

@ sivaram, as far as non-availabilty of self assessment procedure is concerned, ITC's case is irrelevant, because excise duty on cigarettes is levied on the basis of quantity removed, regardless of the assessable value.

Relevant extract from Central Excise Tariff Act, 1985

https://www.cbec.gov.in/excise/cx-tariff0910/chap24.pdf

thanks Mr Chitrank jain for your reply

Rule 6 of the Central Excise Rule 2002, prohibits self assessment in case of cigarettes and due to this statutory bar cigarette is not self assessed.

Hi

Thanks a lot for the replies.

I wanted to study the case law after and due to which cigarettes are not self assessed.

As far as I know there was some company which managed to evade excise for 17 years.

Do not know the name though.

Any help with the case please ?

Thanks