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Why is Excise not self assessed for Cigarettes ?

Ankit (Learner) (25 Points)

17 January 2010

Can someone please help with the case name after and due to which cigarettes are not self assessed for excise ?

Thanks

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vivekita (ca final student) (29 Points)
Replied 17 January 2010

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

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 18 January 2010

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

Chitrank Jain (Senior Manager - Group Internal Audit) (146 Points)
Replied 18 January 2010

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

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