CA Final Download the best Free CA FINAL android app for cracking your exam! Download Now
They are the best ca final faculties in India. They have produced many toppers & rank holders. Their video classes are available only here -
CHECK VIDEO CLASSES HERE

PLACE OF REMOVAL CANNOT BE BUYERS PREMISES

PLACE OF REMOVAL CANNOT BE BUYERS PREMISES

1) INTRODUCTION

1.1) Determining the place of removal under Central Excise Act, 1944 (CEA, 1944) is very important for two reasons. First, in cases where excise duty is payable on transaction value u/s 4 of the CEA, 1944 all the costs incurred till the place of removal are part of assessable value. Second, under the CENVAT Credit Rules, 2004 (CCR, 2004) credit is available of all the input services including Goods Transport Agency Service which is incurred upto the place of removal.

2) LEGAL PROVISIONS

2.1) Let us first consider the definition of place of removal as mentioned in the Statute. Place of removal has been defined under Sec. 4 of CEA, 1944 as under: (c) “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.

2.2) Only three places can be a place of removal. First is factory. Second is a warehouse where excisable goods have been permitted to be stored without payment of duty and third is any other place from where goods “are to be sold” after their clearance from the factory. Exactly same definition has been inserted under clause (qa) of Rule 2 of CCR, 2004.

Department vide circular No. 988/12/2014-CX, dated 20-10-2014 has clarified that place of removal shall be the place where sale takes place as per the Sale of Goods Act, 1930. Thus out of the three mentioned above, place of removal will be the one where sale takes place i.e. the place where ownership of goods passes from the seller to the buyer. Relevant para of said circular is reproduced below for ready reference:

“6. It is reiterated that the place of removal needs to be ascertained in term of provisions of Central Excise Act, 1944 read with provisions of the Sale of Goods Act, 1930. Payment of transport, inclusion of transport charges in value, payment of insurance or who bears the risk are not the relevant considerations to ascertain the place of removal. The place where sale has taken place or when the property in goods passes from the seller to the buyer is the relevant consideration to determine the place of removal.”

PLACE OF REMOVAL CANNOT BE BUYERS PREMISES

PLACE OF REMOVAL CANNOT BE BUYERS PREMISES

 

At CAKART www.cakart.in you will get everything that you need  to be successful in your CA CS CMA exam – India’s best faculty video  classes (online or in pen drive) most popular books of best authors  (ebooks hard copies) best scanners and all exam related information  and notifications.Visit www.cakart.in and chat with our counsellors  any time. We are happy to help you make successful in your  exams.

 

www.cakart.in.

www.cakart.in.

Click here to download FREE CA CS CMA books.

Leave a comment

Your email address will not be published. Required fields are marked *