ACKNOWLEDGEMENT

The Project titled “INDIRECT TAXATION WITH SPECIAL REFERENCE TO

CENTRAL EXCISE” at Exide Industries ltd; is the outcome of the combination of my

theoretical knowledge and practical experience.

I am extremely grateful to Our Director Mr. Ajay Kumar to provide necessary and

essential facilities to do this project report.

My sincere thanks to our (Head of Department) Mr. Sunil Dhanawde, Department of

Management Studies for providing me with an opportunity to study and to do this project

work.

I express a deep sense of gratitude to my Guide Mr. Vikas Barbate, MBA. Faculty

Department of Management studies, for his encouragement, support and guidance to

complete this project work successfully.

Finally, I convey my heartiest thanks to Mr. V.V Sapre (ACCOUNTS HEAD) of

EXIDE INDUSTRIES LTD, who kindly granted permission to do this project report in

his esteemed organization.

The development and combination of this project effort involves sincere contribution

from Mr. S.R.Yelmar (ASST MGNR), and Mr. D.D.Samant (ASST MGNR)

Certainly this project would not have been successfully completed without their co-

operation.

Ashish. B.Bhalerao

MBA Finance

INDEX

CHAPTER No. TOPICS PAGE NO.

EXECUTIVE SUMMARY

1.

INTRODUCTION

1.1 PROJECT INTRODUCTION

1.2 OBJECTIVES OF THE STUDY

1.3 SCOPE & LIMITATIONS

2.

COMPANY PROFILE

2.1 NAME, ADDRESS & LOCATION OF COMPANY

2.2 VISION , MISSION

2.3 HISTORY

2.4 DIFFERENT PRODUCT PROFILES OF THE COMPANY

2.5 AWARDS

3.

THEORETICAL BACKGROUND

3.1 REVIEW OF LITERATURE

3.2 FUNDAMENTAL CONCEPTS

4.

RESEARCH METHODOLOGY

4.1 RESEARCH CONCEPTUAL CLARIFICATION

4.2 SOURCES OF DATA COLLECTION

4.3 SAMPLE DESCRIPTION

5. DATA ANALYSIS

6.

FINDINGS

6.1 FINDINGS BASED ON ANALYSIS

6.2 RECOMMENDATIONS / SUGGESTIONS

6.3 CONCLUSION

BIBLIOGRAPHY

ANNEXURE

EXECUTIVE SUMMARY

HISTORY OF TAXATION

In India, the system of taxation as it is known today has been in force in one form or

another even from ancient times. There are references both in Manu Smriti and

Arthasastra to a variety of tax measures.

The origin of the word "Tax" is from "Taxation" which means an estimate. The levies and

taxes in various forms were imposed to meet the needs of the governments for their

military and civil expenditure, safety towards the common needs of the citizens.

CONCEPT OF INDIRECT TAXATION

Indirect taxes, ranging from VAT and customs duties to environmental levies, affect the

supply chain and the financial system. They create unique challenges to multi-national tax

functions.

CONSTITUTIONAL BACKGROUND OF INDIRECT TAXATION

Indian Constitution has given powers to Central Govt. and State Govt. to levy various

taxes and duties. Powers of Central and State Govt. are enlisted in Seventh Schedule to

our Constitution.

Excise is a duty on excisable goods manufactured or produced in India. Each word of this

definition is vitally important to fix liability of Central Excise Duty.

Power to levy excise duty is derived from Constitution.

1. COMPANY INTRODUCTION

Exide, a global leader in stored electrical energy solutions with operations in over 80

countries and one of the world’s largest producers and recyclers of lead-acid batteries.

Exide is a dominant player in the Industrial Battery segment.

The Company exports batteries which have captured niches in South East Asian and

European markets.

Global Quality developed and produced according to international standards and ISO

9001, 14001& ISO /TS-16949.

EXIDE Offer a Wide Range of Battery’s.

EXIDE product range covering capacities from 2.5 Ah to 10,000 Ah and more.

EXIDE offers complete solution regarding equipment selection, battery sizing,

optimum room layout, installation, operation, & maintenance. We offer lead acid

batteries from 2-5Ah to 20,400Ah. No other company in India offer wide range of

capacity.

Over 52 years accumulated experience of Research & development, manufacturing 7

field operations.

EXIDE’s R & D centre, set up in 1976, Research under ministry of science &

technology, govt of India.

1.1 PROJECT INTRODUCTION

A study on “Indirect taxation with special reference to central excise” at Exide Industries

ltd.

PROJECT CATEGORY:

This project title presentation is for “central excise” which is underlined for Exide

Industries Ltd. Company is a manufacturing dominant player in the Industrial Battery

segment.

REASON BEHIND CHOOSING THIS COMPANY & PROJECT:

One of the “High” revenue paying company.

1.2 ENDEAVOR, OBJECTIVES

ENDEAVOR:

As brought out in the title of the project the basic try of the project is to analyze the

“workings under central excise” at Exide Industries Ltd; and keeping this as the major

priority in mind was essential that the project was carried out in the systematic manner.

OBJECTIVES:

To understand the meaning, concepts and importance of Indirect Taxation.

To know the different types of Indirect taxes such as (Central Excise, Custom Duty,

Service Tax)through various different Legislations & Acts made by the government

for collection of revenue from manufacturing industry.

To analyse the rules and regulations under Central Excise.

To study formats available under Central Excise to calculate excise liability and

CENVAT credits.

To make necessary suggestions and recommendations.

1.3 SCOPE

The scope of this project is to understand “Central Excise” under Indian indirect

taxation.

The study is based on actual data collection and interpretation so it will help to see &

examine the overall position of Exide Industries Ltd.

This project will surely clarify the complexity about the taxation rules and legislations

which will be easy to understand by the society as whole.

The project is helpful to new Entrepreneur for taking due care of the Central Excise

rules and regulations laid down by the Governments.

This project is more helpful for business organizations, firms and individual.

LIMITATIONS

Project duration was two months so in detail study of each and every concept was not

possible.

Some data was confidential in nature due to which nearby information necessary was

not available so, appropriate figures are used.

Few working nature of excise duties were more critical which were difficult to

understand.

Due to the month of filling returns of Exide industries, the working system of

accounts department was always busy, due to which time availability was less.

2. COMPANY PROFILE

Production:

Lead Acid Storage Batteries; 2.5 AH to 12600 AH; Automotive, Motorcycle, Industry

standby, Motive power, Submarine.

Capital:

Authorized Rs.100 Crores, paid up 80 Crores

Turnover:

4554 crores as on 2010-2011.

Employees:

Approx 10349 globally as on 01 June 2009.

Different segments :

35% Market share in after market (including under organized sector) 80% of Organized

Sector 50% Industry Battery Market.

2.1NAME, ADDRESS & LOCATION OF COMPANY

E X I D E I N D U S T R I E S L T D

(INDIA’S ASSOCIATED BATTERY)

D-2, MIDC Industrial Estate, Chinchwad, Pune-411019.

Phone: + 91 - 20 – 27451586

REGD. & HEAD OFFICE

59 E Chowringee Lane, Calcutta 7000020.

Tel: (020) 27503000, 27451585-88

Fax: (020) 66114480

MARKETING OFFICE

Exide House

6A, Hatibagan Road, Entally, Kolkata – 700 014

R & D CENTER

Research & Development Centre,

217, Nazrul Islam Avenue,

Kolkata – 700 059

Phone: 033 – 25005458 / 5225 / 5660

Fax: 033 – 25005545

SERVICE NETWORK

91, New Chord Road, P.O. Athpur, Shamnagar – 743 128, 24 Parganas (North)

Phone: 033 – 25800113/22812146/2147/2148

Mobile: (+91) 9932054192

Fax: 033 – 25813930

2.2 VISION:

Simultaneous to providing credible valve addition to customer, employee’s and

shareholders, being recognize by society as a responsible corporate citizen.

Achieving operational excellence along with caring for environment protection.

MISSION:

To carefully balance the interest of all stakeholders, strive to fulfill aspirations of the

employees and pursue excellence with passion, without deviating from our valves.

CORE VALUES:

Fundamental axioms that organization believes in and people respect and work towards.

Customer Orientation:

Customer orientation adapts the product or services to a customer’s needs and wants. Its

main objectives are to assist, inform, and to be flexible.

Personal Integrity:

Integrity provides insight that is useful to analysts, managers and other researchers.

Teamwork and Mutual support:

Took the initiative in setting up and facilitating meetings where you lead the team

members towards a common objective.

People development and Involvement:

A compelling vision tells people who they are, where they are going, and what will guide

their journey.

Striving for excellence:

Excellence is an art won by training and habituation. We are what we repeatedly do.

Excellence then, is not an act but a habit.

2.3HISTORICAL DEVELOPMENT

1916 Chloride Electrical Storage Co. (CESCO), UK, set up trading operations in India

as an import house.

1946 First factory set up in Shamnagar, West Bengal.

1947 Two Indian Companies were formed: Associated Battery Makers (Eastern) Ltd.

ABMEL took over the manufacturing operations.

1969 Second Factory set up in Chinchwad, Pune.

1976 R&D Centre established in Kolkata.

1981 Third factory set up in Haldia, West Bengal.

1992 First Submarine batteries delivered to the Indian Navy.

1994 Technical collaboration with Shin Kobe Electric Machinery Co. Ltd. of Japan, a

subsidiary of the Hitachi Group.

1995 Chloride Industries Ltd renamed Exide Industries Limited. (EIL)

1997 Fourth factory set up at Hosur, Tamil Nadu.

1998 Exide acquires the Industrial Operations of Standard Batteries Ltd as a going

concern, thereby adding four more factories, taking the total number of factories to

eight.

2000 Acquisition of 100% stake in Chloride Batteries South East Asia Pte Ltd.,

(CBSEA), Singapore & 49% in associated battery Manufacturers, Ceylon, (ABMEL),

and Sri Lanka.

2000 Implementation of SAP Enterprise Resource Planning integrating Corporate

Office, Nine Factories, R&D Centre and More than 30 Sales Offices across India.

2001 Launch of autoexide.com, a fully fledged auto portal.

2003 Commissioning of Eighth factory at Bawal, Haryana

New JV Company in UK- ESPEX Batteries Ltd formed with 51% EIL holding.

Strategic Alliance with IBG in Netherlands for Marketing in Europe.

2004 Associated Battery Manufacturers (Ceylon) Limited, Sri Lanka became a

subsidiary consequent to acquiring further 12.50% Equity holding.

2005 Investment in 50% shareholding of ING Vysya Life Insurance Company

Limited.

2006 Launch of SAP-CRM in Industrial SBU. 2007 Launch of SAP-BW in Industrial

SBU.

2007 Caldyne Automatics Ltd becomes 100% subsidiary consequent to acquiring the

balance 49% shareholding.

2007 Investment with 26% shareholding. In CEIL Motive Power Pty Ltd. A Joint

Venture in Australia.

2007 Acquired 100% stake in Tandon Metals Ltd. 2008 Acquired 51% stake in Lead

Age Alloys India Ltd.

2.4 PRODUCTS

SUBMARINE BATTERIES

INDUSTRIAL BATTERIES

AUTOMOTIVE BATTERIES

2.5AWARDS/ACHIEVEMENTS

100 PPM award from OEM customer American Power Corporation – January ’03

Quality award from OEM customer Toyota - April ’03 & April ‘04

Safety award from Government of Tamilnadu - April’03

100 PPM award from OEM customer Hyundai - June’03

Zero PPM Award from OEM customer Toyota – April’04

Green award from OEM customer Toyota - April’04

Best Quality supplier award from OEM customer Toyota – April’05

Zero PPM award from OEM customer Toyota- April’05

Quality Delivery Award from OEM customer Toyota - April’05

First Prize in Best Garden Competition (Industrial Category) awarded by Mysore

Horticulture Society – 2005

Leadership and Excellence Award in Safety, Health & Environment by CII –2006

Indian Manufacturing Excellence – “Gold” Award –for Automotive Ancillary

Category from Frost & Sullivan in 2006

CII-EXIM Bank Award for Strong Commitment to Excel by CII in 2006

6th TERI Corporate Environmental Award- May’ 07

3. THEOROTICAL BACKGROUND

TAXATION IN INDIA

India has a well developed tax structure with a three-tier federal structure, comprising the

Union Government, the State Governments and the Urban/Rural Local Bodies.

The power to levy taxes and duties is distributed among the three tiers of Governments, in

accordance with the provisions of the Indian Constitution. The main taxes/duties that the

Union Government is empowered to levy are Income Tax, Customs duties, Central Excise

and Sales Tax and Service Tax.

The principal taxes levied by the State Governments are Sales Tax (tax on intra-State sale

of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture

of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes),

Duty on Entertainment and Tax on Professions & Callings.

The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax

on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets

and Tax/User Charges for utilities like water supply, drainage, etc.

Since 1991 tax system in India has under gone a radical change, in line with liberal

economic policy and WTO commitments of the country.

Some of the changes are:

Reduction in customs and excise duties

Lowering corporate tax

Widening of the tax base and matching up the tax administration

WHAT IS A TAX?

A compulsory contribution made by the assesse to the government from his earnings.

HOW MANY TYPES OF TAXES ARE THERE?

There are two types of Taxes in India

Direct Taxes

Indirect Taxes

The Taxes whose burden falls directly on the Tax payers are the “Direct Taxes” like

Income Tax, Wealth Tax etc.

The taxes in which the burden is passed on to a third party are called “Indirect Taxes” like

Service Tax, VAT etc.

DIRECT TAXATION IN INDIA

Direct taxation in India is taken care by the Central Board of Direct Taxes (CBDT). It is a

division of Department of revenue under Ministry of Finance.CBDT is given the

authority to create and control direct taxes in India.

In India the tax structure is divided amongst the central government and state

government.

Central government levies tax State government levies taxIncome, custom duties, central excise and service tax.

State excise, stamp duty, VAT (Value Added Tax), land revenue and professional tax.

Direct taxes are charged on the basis of residential status and not on the basis of

citizenship.

The assessee are charged based upon the following factors

Resident

Resident but not ordinary resident.

Nonresident.

Direct Taxes Reform

The system of direct taxes was very much complex and inefficient because of the

combination of high marginal rates of personal income and wealth taxation and high rates

of corporate profits. It had a major impact on economic policies, creation of savings and

the trend of investment.

INDIRECT TAX SYSTEM INDIA

The Constitution gives the permission to levy a large number of indirect taxes. But the

most important ones are customs and excise duties charged by the Central government

and sales tax excepting inter state sales tax to be charged by the state government.

The indirect taxes levied by the centre like customs, excise and central sales tax and the

major indirect taxes levied by the states and civic bodies like passenger and goods tax,

electricity duty and Octroi.

Since they are less observable than income tax, politicians are tempted to increase them to

generate more state revenue.

Indirect Taxes Reforms

The indirect tax rule in India is still in the early stages of growth. Both the Central and

State governments charge a multitude of indirect taxes. The central government

charges tax on goods at the point of import (Customs duty), manufacture (Excise

duty), interstate sales (Central sales tax or CST) and on provision of services (Service

tax).

The state governments charge tax on goods sold within the state (Sales tax/Value

Added Tax or VAT), and on the goods that enter the state (Entry tax).

In the present scenario corporate would have to analyze the tax cost involved in a

transaction, have enough backup documentation to support their tax positions and

keep looking for ways for tax maximization.

3.1REVIEW OF LITRETURE

QUICK VIEW ON BUDGET CHANGES 2011-12:

The Hon’ble Finance Minister, Shri Pranab Mukharjee, presented his 6th Budget on 28th

Feb. 2011 in the “LOK SABHA”.

The Aam Aadmi relief for whom was talked about a lot in & out of the parliament has

reason to feel disappointed as there is nothing for him in the budget. Rather the finance

minister has proposed to raise an additional Rs 1150/-from Indirect taxes, mainly Central

Excise duties.

INDIA BUDGET 2008

As per the Ministry Of Finance there has been significant development in planning for

introducing the goods and services tax (GST) from April 1 2010.As a first step the rate of

central sales tax (CST) is under proposal to be decreased to 2 per cent from April1

2008.The general rate of central value added tax (CENVAT) has been decreased from 16

per cent to 14 per cent across all goods.

WHAT IS EXCISE DUTY?

Excise duty is an indirect tax levied and collected on goods manufactures in India.

An excise or excise tax (also called an excise duty) is a type of tax charged on goods

produced within the country. It is a tax on the production or sale of a good. This tax is

now known as the Central Value Added Tax (CENVAT).

Though the collection of tax is to augment as much revenue as possible to the government

to provide public services, over the years it has been used as an instrument of fiscal policy

to stimulate economic growth.

OBJECTIVES OF CENTRAL EXCISE:

To improve the business by optimizing maximum credit availing facility from

suppliers.

Adopt unified Modvat rules for inputs and capital goods.

Eliminate divergent practices in the applicant of Excise laws and procedures at

different formations by effective monitoring and analysis of the computerized

database.

To generate more revenue basically towards central & state government.

CONCEPT OF CENTRAL EXCISE:

Excise are levied and collected by the Government of India only on Production or

Manufacture.

It is one of the Indirect Taxes by character as the manufacturers can shift the incidence of

the Central Excise duty on the Consumers.

The concept of central excise can be divided into three categories namely. Which are

as follows?

BASIC - Excise Duty, imposed under section 3 of the 'Central Excises and Salt Act' of

1944 on all excisable goods other than salt produced or manufactured in India, at the rates

set forth in the schedule to the Central Excise tariff Act, 1985, falls under the category of

basic excise duty in India.

Basic excise duty for most of the items is 8% at present. Also rectify the Tariff as it may

change according to the commodity.

ADDITIONAL - Section 3 of the 'Additional Duties of Excise Act' of 1957 permits the

charge and collection of excise duty in respect of the goods as listed in the schedule of

this act. This tax is shared between the central and state governments and charged instead

of sales tax.

SPECIAL - According to Section 37 of the Finance Act, 1978, Special Excise Duty is

levied on all excisable goods that come under taxation, in line with the Basic Excise Duty

under the Central Excises and Salt Act of 1944. Therefore, each year the Finance Act

spells out that whether the Special Excise Duty shall or shall not be charged, and

eventually collected during the relevant financial year.

IMPORTANCE OF EXCISE DUTIES:

Trade on which excise are not paid by the company are to be maintained and submitted to

Central Excise‘s appropriate superintendent. It has a huge importance to send the unpaid

duties towards excise department i.e. not to have an imbalanced account records,

complexity in data, and interruption in business.

It is mandatory to pay duty on all goods manufactured, unless exempted. For example,

duty is not payable on the goods exported out of India. Similarly exemption from

payment of duty is available, based on conditions such as kind of raw materials used type

of process employed etc.

WHO ARE LIABLE TO PAY EXCISE DUTY?

The liability to pay tax excise duty is always on the manufacturer or producer of goods.

There are three types of parties who can be considered as manufacturers:

Those who manufacture the goods

Those who get the goods manufactured by employing hired labour

Those who get the goods manufactured by other parties

CONSEQUENCE OF AVOIDING PAYMENT OF EXCISE DUTY:

Under the different sections of the central excise act, the fines for evading tax can range

25% to 50% of the amount of duty evaded. When you look at the amount of excise you

may have to pay, this is a rather large amount and along with the financial impact, you

also have to encounter a stained image.

The effects on organization, if they are not maintained & followed

Bear Penalties

Loss of reputation

Disappointments of client

Disarray.

No. of cases frequently observed

Monthly approx about 80-90.

Minimum period for filling & sending the report

24 hours.

HOW IT IS CALCULATED?

MRP or Cost of goods * 14% excise * 2% Cess (charged on the 14% excise duty) * 1 %

educational cess = MRP * 14.42% * Chargeable value of MRP

For example: If u have a dish wash bar which is MRP Rs.18

MRP: 18

Excise duty: 14.42%

Rebatement or Chargeable value of MRP: 67.5% of MRP

There for

ED = 18 x 0.1442 * 0.675 = 1.752

Excise duty has to be included in the basic cost of the product and has to be declared by

the manufacturer upfront before the goods leave the manufacturing plant.

FORMAT OF SENDING REPORT FOR UNPAID TRADES:

Our Ref. Cancellation Date. 28.02.2011

Superintendent of Central Excise,

Chinchwad Range-II

Div.II, P.J.Chambers,

Pimpri, Pune-411 018.

Sub: Cancellation of Invoice.

Respected Sir,

Enclosed please find herewith the cancellation invoices which are erroneously prepared.

INV.NO. INV.NO.

03-22-212805 03-23-107980

03-22-213181 03-23-108260

03-22-212623 03-23-108026

Kindly acknowledge the receipt on duplicate copy.

Thanking you,

Yours Sincerely,

For Exide Industries Ltd,

XYZ

ASST MANAGER- ACOUNTS

Encl: OFB & DFT copies

CENVAT:

BROAD DIVISIONS OF MANUFACTURING INDUSTRY:

Manufacturing for sale to customers (Within the state & outside the state)

Manufacturing for sale to transfer to depots (Within the state & outside the state)

Manufacturing for exports

Manufacturing for sale to deemed exports

Manufacturing for sale to 100% EOU’s (Export Oriented Units)

MEANING:

The term CENVAT refers to excise duty under Sec 3 of the central excise act 1944.

Cenvat is a scheme under central excise and service tax law which enables manufacturers

to take credit of their specified duties paid on eligible inputs and capital goods as well as

Service tax paid on notified input services which are received with specified duty/tax

paying documents and used in, or in relation to manufacture and clearance of dutiable

final product.

ADVANTAGES OF CENVAT:

The CENVAT scheme is very moderate and user friendly.

All industries will certainly derive of the benefit of the CENVAT scheme, more so

when the applicability has become wider and record keeping has been made much

easier.

Due to easy compliance and acceptance of the scheme by many industries there

will be better compliance by the assessee which will ultimately increase revenue

to government.

A CENVAT CREDIT - CREDIT RAISED AND AVAILED PROCESS

COMPANY

Manufactures Pen @ Rs 2/-

Purchases material at Rs 1/- from vendor/supplier.

Sales refill to company at Rs 1/- which already includes paid tax.

The Company Processes materials to finished product & sells at Rs 5/- by adding their appropriate charges.

While selling the Pen @ Rs 5/- company have to pay Rs 1.50/- as tax but, Rs 0.50/- is already paid while purchasing refill from supplier.

VENDOR/SUPPLIER

Manuf cost Rs 0.20/- Tax Rs 0.50/- Profit Rs 0.30/-

1) In this diagram it is clarified that the amount of tax paid by the vendor to govt is collected from the company while selling.

2) Once the company processes the finished goods they are charged with certain profits and sold at appropriate selling price.

3) As the 50% of tax is paid by the vendor and recovered from company while selling. The company further avails the credit of 50% tax which have already being paid and remaining tax amount is paid to the govt.

Manufactures Pen Refill @ Rs 1/-

CENVAT CREDIT

The basic scheme concept of the scheme is to give instant credit of the Central Excise

Duty paid (including additional duty, special excise duty and counter vailing duty on

input) on goods used in the process of manufacture of Final product.

Such instant credit can be utilized towards the payment of excise duty on the final

product. In short, the manufacturer is reimbursed the amount of duty paid on the

components and raw materials used in production process. The assesse is eligible to take

100% credit of the duty paid on inputs.

The manufacturer can avail the benefits of CENVAT scheme provided that inputs and

finished products are excisable commodities and within the range of product under

notified scheme.

Why CENVAT?

MODVAT Credit Scheme, which is known as CENVAT Credit Scheme, was introduced

mainly to avoid the cascading effect of tax on tax so that in the domestic market as well

as in the international market, the goods manufactured in India can be offered to the

customer at a competitive price and at the same time, the end user does not pay the price

including the taxes paid at multiple stages.

FEATURES OF CENVAT SCHEME:

Coverage

Wider Acceptability

Simplified Procedure

Utilization Of Credit

How CENVAT scheme operates?

Example:

Product X

Amount of duty paid (Rs.)

A) Inputs

1) Steel 150

2) Aluminum 150

3) Components 90

4) Paints 50

5) Consumable (e.g. Welding Electrodes) 70

6) Packing Materials 40

TOTAL 550

B) Final Products – Assessable Value 10000

Duty (10%) 1000

C) Payment of Excise Duty on clearance of final

products Duty payable as per ‘B’

1000

Less CENVAT Credit on inputs availed as per ‘A’ 550

Duty payable by Cash 450

EXCISE CENVAT AVAILMENT:

The details are taken from the Document of Cenvat challan. Due to 3rd party

documentation it was unable to show the actual contents and the challan format.

The very 1st area of system lies on the first screen of system.

Select then area for [JITEX] – which states for (Incoming Excise Invoices).

The 2nd area lies for the G/R – Goods Receipt no. Input it in system.

The 3rd screen appears while clicking the G/R no.

1st Tab i.e. Excise Invoice

Input the following details in system.

Excise Document No. /Doc Date/ Excise Base amount-This amount is assessable amount

It is the value on which we avail 10% Cenvat

CENVAT EDU CESS HIGHER EDU CESS

10% 2% 1%

Click Post CENVAT

We receive a screen with Excise Invoice operation.

Take Excise Invoice No.

Serial No.

Acct Doc No.

Note: If by mistaken there is a wrong entry input in system it cannot be changed.

But it should be reversed in system.

IMPORTANT DEFINITIONS:

EXEMPTED GOODS

Exempted goods means goods which are exempt from the whole of the duty of excise

leviable thereon and includes goods which are chargeable to NIL rate of duty.

FIRST STAGE DEALER

First stage dealer means dealer who purchases the goods directly.

SECOND STAGE DEALER

Second stage dealer means a dealer who purchases goods directly from the first stage

dealer.

MERCHANT EXPORTER

A merchant exporter is a business man, who buys good n exports the same.

MANUFACTURER EXPORTER

A manufacturer exporter is one, who produces goods n exports the same

LARGE TAXPAYER UNIT (LTU)

Large Taxpayer Units have been setup as a self contained tax office under the Department of Revenue to act as a single window clearance point for all matters relating to Central Excise, Income Tax/ Corporate Tax and Service Tax.

Presently, there are four LTUs functioning in Bangalore, Chennai, Delhi and Mumbai

SALIENT FEATURES OF CENVAT

1) CREDIT ON DUTY PAID TO MANUFACTURER OF EXCISABLE GOODS

The provisions of CENVAT scheme shall apply to the manufacturer of notified

excisable goods that uses the notified inputs in the manufacture of final product.

2) CREDIT ON DUTY PAID ON INPUTS

The CENVAT scheme is principally based on system of granting credit of duty paid on

inputs. Under CENVAT scheme, the manufacturer while making the payment of duty on

final product can avail and utilize the instant credit of duty paid on inputs. This will result

in avoidance of duty on duty.

3) INPUTS MAY BE USED DIRECTLY OR INDIRECTLY

The inputs in respect of credit of duty paid is claimed, must be directly or indirectly used

in relation to the manufacture of the final product.

4) NO CREDIT ON HSD AND PETROL

Duty paid on high speed diesel and motor spirit (petrol) is not available as CENVAT

credit, even if these are used as raw materials.

5) NO CREDIT IF THE FINAL PRODUCT IS EXEMPT FROM DUTY

No CENVAT credit is available if the final product is exempt from duty.

6) SPECIFIED DOCUMENTS AND RECORDS

CENVAT credit can be availed on the basis of specific documents as a proof of payment

of duty on Inputs. The manufacturer should maintain proper records for receipt, disposal,

consumption and inventory of the inputs and capital goods containing details such as

value, duty paid, person from whom inputs are purchased.

7) INSTANT CREDIT

Credit of duty paid on inputs can be taken instantly i.e. as soon as the inputs reach the

factory. In case of capital goods 50% credit is available in the current year and balance

50% in subsequent financial year.

8) PROCESSES LOSSES

CENVAT credit is available on all inputs even if some of inputs go as process loss.

EXCISE EXPORT PROCEDURE:

A with regard to exports would assume significance considering the fact that exports out

of the country are to be zero rated. Apart from this principle, the exporters are also

entitled to certain additional benefits like sourcing inputs required for production of goods

to be exported without payment of applicable duties. The benefits that are available to

exporters are not provided under any one single law and include the Central Excise Act,

1944 and Rules, Customs Act, 1962, Foreign Trade Policy of the Government

considering the fact that most of the manufacturers who export goods have to comply

with the provisions of both Central Excise and Customs laws apart from adhering to the

basic guidelines laid down by the government under the Foreign Trade Policy for

promotion of exports.

There are mainly three categories of exports:

Export of all excisable goods to all states except Nepal and Bhutan

Export to Nepal and Bhutan

Export to Foreign countries

The procedures relating to export can be classified into two:

Export of goods without payment of duty.

Export of goods on payment of duty under rebate.

The conditions and procedure relating to export without payment of duty are contained in

Notification of Central Excise issued under rule 19 of the Central Excise 2002

EXCHANGE RATES FOR IMPORT & EXPORT OF GOODS (Foreign only)

S. No. Foreign currency Rate of exchange of one unit of foreign

currency equivalent to Indian rupees

(For Imported

Goods)

(For Export

Goods)

1. Australian Dollar 46.05 44.65

2. Canadian Dollar 46.40 45.10

3. Danish Kroner 8.45 8.15

4. EURO 62.80 61.10

5. Hong Kong Dollar 5.85 5.75

6. Norwegian Kroner 8.15 7.85

7. Pound Sterling 74.15 72.20

8. Swedish Kroner 7.15 6.90

9. Swiss franc 49.00 47.65

10. Singapore Dollar 35.85 34.90

11. US Dollar 45.70 44.75

S. No. Foreign currency Rate of exchange of 100 unit of foreign

currency equivalent to Indian rupees

(For Imported Goods) (For Export

Goods)

1. Japanese Yen 55.60 53.95

EXPORT WITHOUT PAYMENT OF DUTY [Rule 19]

(1) Any excisable goods may be exported without payment of duty from a factory of the

producer or the manufacturer or the warehouse or any other premises, as may be

approved by the Commissioner.

(2) Any material may be removed without payment of duty from a factory of the

producer or the manufacturer or the warehouse or any other premises, for use in the

manufacture or processing of goods which are exported, as may be approved by the

Commissioner.

(3) The export under sub-rule (1) or sub-rule (2) shall be subject to such conditions, and

procedure as may be specified by notification by the Board.

Rule 19 of Central Excise Rules 2002 governing export under bond/Letter of undertaking

states that any excisable goods may be cleared for export without payment of duty from

either the factory of manufacture or warehouse or any other premises approved by the

Commissioner of Central Excise.

EXPORT WITHOUT PAYMENT OF DUTY UNDER BOND/LETTER OF

UNDERTAKING

Export without payment of duty is further classified into the export to the countries other

than Nepal and Bhutan for which there is a different procedure. Exports to these two

countries are subject to more strict safeguards which have been notified separately and

would also be subject to restrictions in terms of discharge.

EXPORT TO ALL COUNTRIES EXCEPT NEPAL & BHUTAN CONDITIONS:

Merchant exporter shall furnish bond in Form B-1 & obtain certificate in Form CT-1.

A manufacturer-exporter may furnish annual Letter of Undertaking in Form UT-1(no

CT-1 is required in this case).

WHAT IS THE DIFFERENCE BETWEEN MERCHANT EXPORTER AND

MANUFACTURER EXPORTER?

A merchant exporter is a business man, who buys good n exports the same.

A manufacturer exporter is one, who produces goods n exports the same

FORMS TO BE USED:

ARE.1 is the export document for export clearance which shall be prepared in

quintuplicate (5 copies)

If the export is under bond executed by merchant exporter, the form should be signed by

both manufacturer as well as merchant exporter.

THE DIFFERENT COPIES OF ARE.1 FORMS SHOULD BE OF DIFFERENT

COLORS INDICATED BELOW:

Original White

Duplicate Buff

Triplicate Pink

Quadruplicate Green

Quintuplicate Blue

PROCEDURE FOR EXPORT UNDER DIFFERENT SITUATIONS:

A) Procedure for clearance from the factory or warehouse

A merchant-exporter who has furnished a bond shall be provided sufficient number of

certificates (CT-1), duly signed/certified, in multiples of 25 copies, normally covering

a period of one to three months. The certificate should be provided according to the

volume of exports.

The second part of CT-1 is very important.

B) Sealing of goods and examination at place of dispatch

The Superintendent or Inspector of Central Excise, will verify the identity of goods

mentioned in the application and also verify whether the duty assessed is appropriate

and the duty payable has been has recorded in the Daily Stock Account.

The exporter is required to prepare five copies of application in the Form ARE-1.

If he finds that the declaration in ARE.1 and the invoices are correct from the point of

view of identity of goods and its assessment to duty, he shall seal each package or the

container ensuring that the goods cannot be tampered with after the examination.

C) Distribution of ARE.1 in the case of export from the factory or warehouse

Original (First Copy) The said Superintendent or Inspector of Central Excise

shall return to the exporter immediately after

endorsements and signature.

Duplicate (Second Copy) The said Superintendent or Inspector of Central Excise

shall return to the exporter immediately after

endorsements and signature.

Triplicate (Third Copy) Sent to the bond sanctioning authority, either by post

or by handing over to the exporter in a tamper proof

sealed cover after posting the particulars in official

records.

Quadruplicate (Fourth Copy) Retain for official records.

Quintuplicate (Fifth Copy) Optional copy - The said Superintendent or Inspector

of Central Excise shall return to the exporter

immediately after endorsements and signature.

D) Distribution of ARE.1 in the case of export from other than factory or warehouse

Where goods are not exported directly from the factory of manufacture or warehouse,

the distribution of A.R.E.1 will be the same as above except that the triplicate copy of

application shall be sent to the Superintendent who shall, after verification forward

the triplicate copy in the manner specified.

E) Dispatch of goods by self-sealing and self-certification

Self-sealing and self-certification is a procedure by which the exporter who is a

manufacturer or owner of a warehouse or a person (who should be permanent

employee of the said manufacturer or owner of the warehouse holding reasonably

high position) duly authorized by such owner may remove the goods for export from

his factory or warehouse without examination by a Central Excise Officer.

F) Export by parcel post

In case of export by parcel post after the goods proposed for export has been sealed,

the exporter shall affix to the duplicate application sufficient postage stamps to cover

postal charges and shall present the documents, together with to the postmaster at the

office of booking.

G) Examination of goods at the place of export

The place of export may be a port, airport, Inland Container Depot, Customs Freight

Station or Land Customs Station.

The exporter shall present together with original, duplicate and quintuplicate

(optional) copies of the application (A.R.E. 1) to the Commissioner of Customs or

other duly appointed officer

The goods are examined by the Custom officers for the purposes of Central Excise to

establish the identity and quantity, i.e. the goods brought in the Customs area

The officer of customs shall return the original and quintuplicate (optional copy for

exporter) copies of application to the exporter and forward the duplicate copy of

application either by post or by handing over to the exporter in a tamper proof sealed

cover to the officer specified in the application, from whom exporter wants to claim

rebate.

EXEMPTION BASED ON VALUE OF CLEARANCES (SSI)

The Small Scale Units (SSI) is given certain relief under the Central Excise Law by

passing exemption notifications. These exemption notifications are popularly called SSI

exemption notification because they were originally meant to be an incentive to SSIs.

The exemption to SSIs started with the Notification No. 175/86

The manufacturer availing the notification has to satisfy certain conditions for availing

the benefit and the goods manufactured should be covered under this notification.

MEANING OF SMALL SCALE UNITS

The definition basically takes the investment made on the plant and machinery by any

industries as the basis for determining the small scale industries.

PRODUCTS COVERED UNDER THIS SSI EXEMPTION NOTIFICATION

The exemption to be given to SSIs is not applicable for all the goods. The benefit of the

said notification is restricted to the products listed in the notification. The notification

covers most of the products

However, tobacco products, pan masala, watches, matches and some textile products are

specifically excluded from SSI exemption.

ELIGIBILITY

The units whose value of clearances computed in accordance of the notification is less

than 400 lakh (4 crore) in the previous financial year are eligible for the benefit of the

notification

The limit will be calculated by taking into account the clearances in respect of one

manufacturer from one or more factories or from a factory by one or more

manufacturers.

For example, if ABC Ltd. wants to claim the benefit of the notification in the year

20102011, then it has to see whether the clearances of the year 2009-2010 has

exceeded Rs. 4 crore.

Exempted units whose turnover is more than prescribed limit (called specified limit)

have to file a declaration in prescribed form with Assistant Commissioner of Central

Excise and should obtain a dated acknowledgement. Such declaration is filed only

once in the lifetime of the assesse and not every year.

The ‘specified limit’ for this purpose is Rs.60 lakh below exemption limit. In present

provisions this limit works out to be Rs.90 lakh (Rs.150 lakh – Rs.60 lakh).

Therefore, the declaration shall be filed by units whose turnover exceeds Rs.90 lakh.

Small units whose turnover is below the specified limit (Rs.90 lakh) per annum shall

not file any declaration at all.

If the manufacturer wishes to pay normal duty availing CENVAT facility, he can do

so.

The manufacturer has to intimate his option with the following details either to

Assistant Commissioner of Central Excise or Deputy Commissioner.

(a) Name and address of the manufacturer;

(b) Location of the factory/factories;

(c) Description of the inputs used in the manufacture;

(d) Description of goods manufactured;

(e) Date on which this option is exercised;

(f) Aggregate value of clearances of goods.

RELAXATION IN THE DUTY

Value of clearances in Rs. lakh in a financial year Duty Structure

Amount Duty

0- 150 lakh 0%

>150 lakh Normal duty

CLUBBING OF CLEARANCES

As per section 2(f) of the Central Excise Act, 1944 a manufacturer means not only a

person who employs hired labour but also person who engages in production or

manufacture on his own account. The words “on his own account” have caused

considerable legal action.

The Department normally denies the benefit of the exemption on the ground that one

manufacturer wants to split up one unit into various units to take advantage of Nil duty

clearances up to Rs.150 lakh in respect of each unit.

It is the argument of the Department that there is considerable revenue loss when the

manufacturer purposely plans his affairs in this manner while continuing to exercise

managerial control over all the units. Therefore, the Department denies the benefit of the

exemption notification when they find common directors or common shareholders or

common employees or common usage of facilities including funds.

The main aspects which lead to clubbing of clearances are as under:

Reason to start is due to customers not willing to pay the excise duty

Beneficial financial interest in new unit

Working in cycle and as one unit

Common procurement or sale

Common stock usage

The reasons for commencing investigation are same location, same product, sharing of customers, same partners, interest free advances, shared facilities, sharing of expenses and incomes etc.

4. RESEARCH METHODOLOGY

INTRODUCTION

Research methodology is a way to systematically solve the problems. It may be

understood as a study about how research is done mathematically & scientifically. It

includes the overall research design, the sampling procedure, data collection method and

analysis procedure.

RESEARCH

“A careful investigation or inquiry especially through search for new facts in any branch

of knowledge”

TYPES OF RESEARCH

Descriptive Vs. Analytical

Applied Vs. Original

Quantitative Vs. Qualitative

Conceptual Vs. Pragmatic.

TYPES OF RESEARCH USED FOR PROJECT

ANALYTICAL RESEARCH

Analytical Research is that research where the researcher use that facts or information

which is already collected by some other person. The research uses this facts or

information and makes critical evaluation of data for providing results or solution to

specific problem.

In analytical research two types of analysis can made:-

1. Analysis of Historical records, Recording of notes, content analysis, tape and film

listening and analysis.

2. Analysis of document, Statistical compilations, reference and abstract guides,

content analysis.

DESCRIPTIVE RESEARCH

Designed to provide further insight into the research problem by describing the variables

of interest, can be used for profiling, defining, segmentation, estimating, predicting, and

examining associative relationships.

CAUSAL RESEARCH

Designed to provide information on potential cause-and-effect relationships, most

practical in marketing to talk about associations or impact of one variable on another.

4.1 RESEARCH CONCEPTUAL CLARIFICATION

METHODOLOGY USED FOR PROJECT

Research methodology is way to systematically solve the research problem. Research is a

scientific and systematic search for pertinent information on a specific topic. It has its

special significance in solving various operational and planning problems of business and

industry in it we study the various steps that are generally adopted by researcher in

studying his research problem along with the logic behind them.

For this project analytical research is carried.

The methodology used for calculating excise duty of the company had based on

formula and the values from previous reports of the company.

The methodology is to know the excise duties paid annually i.e. 2010-11.

The methodology to analyzing various different “Legislations & Acts” made by the

government for collection of revenue from manufacturing industry.

For theories related to topic, exchange rates and interpretation was gathered from

various financial management books, web sites and communication of people who

have good knowledge about these topics.

4.2DATA COLLECTION METHOD

SOURCE OF DATA

Both primary and secondary data are used for the data collection.

PRIMARY DATA

Primary data are those data which are collected as fresh for the first time, and thus happen

to be original in character. The primary data is collected from the (Level M1) respondents

through questionnaire. The responses are collected from them and used for analysis

SECONDARY DATA

Secondary data are those data which have already been collected by someone else and

which have already been passed through the statistical process. The secondary data is

collected from books, Web sites, magazine etc. The data relating to the history of the

company is collected from the personal website of the company.

Primary DataPrimary Data

Data Collection Method

Data Collection Method

Secondary DataSecondary Data

CommunicationCommunicationInformation System

Information System

INFORMATION SYSTEM

SAP: Systems Applications and Products in Data Processing.

A company that develops software which allows businesses to track customer and

business interactions.

SAP is well-known for its data management programs.

COMMUNICATION

People who have good knowledge about these topics. People such as senior officers,

accountants, managers.

Different sources of communication were used such as email, telephone, IM messenger.

4.3SAMPLE DESCRIPTION

The issue involved in this case is in respect of refund claims of the respondent company

rejected by the adjudicating authority

But on appeal, the Commissioner (Appeals) allowed the appeal of the respondent

company.

The refund claim ought not to have been sanctioned to the respondent company, as they

had issued Credit Notes to their Purchasers.

The Commissioner, in this context, relies upon the decided case-laws wherein it has been

settled that refund cannot be sanctioned on the basis of Credit Notes being issued to the

Purchasers of the goods.

None appeared for the respondent company, despite notice.

Considered the submissions made by Commissioner and perused the records. It was

found that the Commissioner (Appeals) in his findings observed the followings:-

When going through the order in original; there is no dispute that the appellant made

over-payment because of some calculation mistake. Therefore, the amount claimed by the

appellant did not represent excise duty at all. The amount, therefore, should be refunded

to the appellant.

No evidence in support of this finding was shown in the negotiation order.

Besides, the authority did not find it necessary to consider the appellant's request that

credit notes were issued to their buyers maintain their claims that the amount was not bear

by their customers as excise duty.

The appellant also issued commercial bills showing the correct amount of excise duty.

Therefore, it was unable to accept the adjudicating authority's finding that the amount was

passed on to the buyers.

From the above, it is very clear that the Commissioner (Appeals) had considered all the

aspects of the case-laws relied upon by the authority before me.

Coming to the conclusion that the payment of duty by the respondent company is due to a

mistake, and the said mistake has resulted in excess payment of amount to the

government.

Since the excess amount has not been recovered by the respondents from their purchasers,

the respondents were eligible for refund of the said amount.

5. DATA ANALYSIS

INTRODUCTION TO SAP (SYSTEM ANALYSIS AND PROGRAM

DEVELOPMENT)

SAP Stands for System, Application, and Product in data Processing. Founded by five

German engineers in 1972, SAP is the World’s Leading provider of business software,

offering application and services to companies of all sizes across more than 25 industries.

SAP offers an integrated system, which means that all sap modules are designed to share

information and automatically create transaction based on various business processes.

SAP OFFER THE FOLLOWING SOFTWARE SUITES

Supplier Relationship Management (SRM)

Strategic Enterprise Management (SEM)

Catalog Content Management (CCM)

Compliance Management (CM)

Supply Chain Management (SCM)

Product life Cycle Management (PLCM)

Customer Relationship Management (CRM)

SAP: Systems Applications and Products in Data Processing.

A company that develops software which allows businesses to track customer and

business interactions. SAP is well-known for its data management programs.

WORKING SYSTEM OF COMPANY

Logon Screen

Home Screen

Processing area Screen

Working area Screen

DATA PRESENTATION:

Direct Taxes Collections (Rs. in crores)

Corporate tax 241,921

Income tax 128,235

Other direct taxes 2833

Multiple Options Screen

Indirect Taxes Collections (Rs. in crores)

Customs 84,542

Central Excise 101,666

Service tax 55731

PRODUCTION CLEARANCE

Amt in (crores) 2009-2010 2010-2011

Total Duty Utilized 59 94

Cenvat Availed 43 68

Export 10 13

EXPORT

Amt in (crores) 2009-2010 2010-2011

CT-1 0.23 0.44

CT-3 0.8 11

EXPORT

2009-10 109515239

2010-11 136301470

While looking at the composition of current and previous season's growth in relation to

Export, Company achieves a growth of 26.78%

INDIA’S GDP GROWTH RATE

The Gross Domestic Product (GDP) in India expanded 7.8 percent in the first quarter of

2011 over the same quarter, previous year. From 2004 until 2010, India's average

quarterly GDP Growth was 8.40 percent reaching an historical high of 10.10 percent in

September of 2006 and a record low of 5.50 percent in December of 2004.

India's diverse economy encompasses traditional village farming, modern agriculture,

handicrafts, a wide range of modern industries, and a multitude of services. Services are

the major source of economic growth, accounting for more than half of India's output

with less than one third of its labor force.

The economy has posted an average growth rate of more than 7% in the decade since

1997, reducing poverty by about 10 percentage points.

COUNTRIES

Our economy has succeeded in maintaining one of the highest GDP growth rates in

the world in the last decade with very low inflation, there are several areas where

immediate improvements are required to sustain the growth.

The two principal concerns:

The weakening public finances.

Relatively weak performance of exports and foreign direct investment (FDI).

On the monetary side, while the government needs immediate attention to raise the

declining tax to GDP ratio. On the external front, India’s success in integrating into the

world economy critically centered upon raising the share of its exports in world trade.

The stated objective of the Ministry of Finance and Company Affairs in setting up

this task force on Indirect Taxes is “to take advantage of information technology and

bring the indirect tax systems and procedures at par with the best international practices

and encourage compliance.

This mandate the review of the present indirect tax laws and procedures - Customs,

Central Excise and Service Tax with an eye toward removing complexities and

facilitating voluntary compliance.

The bottom line is to set in place a user friendly and transparent tax administration in tune

with the best international practices.

The understanding is that such measures would improve voluntary tax compliance and

reduce the transaction costs and, thus arrest the trend of falling tax to GDP ratio.

The most direct way to raise tax to GDP ratio is to remove most of the excess of

exemptions granted on import and excise taxes for a variety of reasons.

To boost exports and FDI, the government must sharply reduce the transaction

costs associated with trade and doing business with India.

The main objective is to reduce the cost of doing business for all parties by eliminating

unnecessary administrative burdens associated with bringing goods and services across

borders.

A positive stance by India in WTO on trade facilitation would serve two purposes:

We could use it to get some concessions from the developed countries who are

championing this idea.

This would improve our international image as a committed reformer.

6. FINDINGS

SWOT ANALYSIS (Strength, Weakness, Opportunities, Threat)

INTRODUCTION:

The company is engaged in the business of development/ manufacturing/ covering the

broadest spectrum of applications. Exide Industries is the biggest storage battery

producing company in India. It is also the largest power storage company in the whole of

the south-east Asian region.

STRENGTH:

The Company exports batteries which have captured niches in South East Asian and

European markets.

All the suppliers, customers, business partners believe in Exide for its value of reputation

in market. And no other company in India offers wide range of capacity.

Exide has over 52 years accumulated experience of Research & development.

WEAKNESS:

In Exide industries ltd, the communication and infrastructure are not standardized.

The products manufactured and the services offered are as per the requirements of the

customers.

OPPORTUNITIES:

India is one of the fastest growing economies in the world registering the Gross Domestic

Product (GDP) in India expanded 7.8 percent in the first quarter of 2011.

This growth momentum was coupled with the “BHARAT NIRMAN” & “NATIONAL

URBAN RENEWAL MISSION” efforts calls for large capital investment outlay.

Investments in manufacturing and other core industries give a tremendous boost to the

industry, which is balanced for continuing growth during the next 10-15 years.

Exide industries ltd being the manufacturing dominant player and market leader will

continue to benefit from these growth and opportunities.

THREATS:

Whenever there growth opportunity, it is quite natural that lot of international players will

enter the market.

The significant players in Indian organized sectors apart Exide industries ltd are

AMCO YUASA, AMARON, TATA GREEN, LUMINOUS, etc and many other

regional/national/international players. While the treats from international players is quite

visible, the domestic manufactures Exide industries ltd are fully prepared to meet the ever

increasing demand for battery products for existing and emerging new applications.

6.2RECOMMANDATION & SUGGESTION:

Company’s policy of utilizing its asset & machinery to optimum level should be

continued in future also.

It is recommended that the company should improve the working infrastructure.

It is recommended that the data must be stored and processed more in electronic form

rather than manual form.

It is recommended to increase few more staff to be recruited.

Communication gap should be improved.

It is recommended towards the supplier that they must carry the simplest way for

work & communication.

6.3CONCLUSION:

As “Exide Industries Ltd” is in manufacturing sector they avail the different

credentials benefits through CENVAT.

Company is increasing their revenue through introducing new product line.

Exide Industries Ltd achieves Quality & Productivity commitments.

Company is in appropriate Trading, manufacturing, production, & tax fillings.

Exide Industries Ltd takes a good startup for marketing their products since 1st

June 2011. E.g. Exide Industries Ltd introduces [SF Sonic Batteries] whose Brand

ambassador is bollywood actor “Salman Khan”.

Company has efficiently managed to use the long term funds of owners and

creditors.

Company has efficiently managed its investments for future gains.

Investors will continue to invest in Exide.

BIBLIOGRAPHY:

A) Print Materials

Books

R.K. Jain – Central Excise Law Manual 52nd Edition 2011-12.

Exide Industries – Annual Report & Accounts 2010-11.

Exide Industries – Magazine Exchange 2010-11.

T. Gunasekaran’s – CENVAT Manual 22nd Edition 2010-2011.

V.Raghuram & Madhukar N. Hiregange – Central Excise Law & Procedures 2011-2012

C.R. Kothari – Research Methodology 2nd Revised Edition 2009.

B) Internet

Web site, no author

Links:

http://finmin.nic.in/

http://dor.gov.in/

C) Professional or organizational Web page

Links:

http://www.aces.gov.in/

http://www.aces.gov.in/REGASE/switch.do?prefix=/ui/jsp/common&page=/firstlogin.do

Magazine article:

Exide’s Exchange 2011.

D) Images

Google images

Links:

http://www.google.co.in/search?

hl=en&gbv=2&tbm=isch&q=excise+duty&revid=907877971&sa=X&ei=SmgeTrG_MsT

MrQeI37ioAg&ved=0CDkQ1QIoAA&biw=1440&bih=784

http://www.google.co.in/search?hl=en&gbv=2&biw=1440&bih=784&tbm=isch&sa=1&q=excise+duty&oq=excise+&aq=1&aqi=g10&aql=&gs_sm=e&gs_upl=10833l11142l0l12946l3l3l0l0l0l0l152l400l0.3l3

The development and combination of this project involves sincere contribution in the

form of time and efforts of many people. Certainly this project would not have been

successfully completed without their co-operation.

QUESTIONAIRE 1 (SSI)

(i) What is the eligible turnover for claiming exemption?

Ans: The eligible turnover for claiming exemption under the said notification is Rs.400

lakh.

(ii) How the turnover is computed when the manufacturer has more than one

factory?

Ans: When a manufacturer clears the goods from one or more factories, the turnover of

all the factories have to be combined for the purpose of claiming exemption under

the said notification.

(iii) What does ‘value’ mean?

Ans: The value for the purposes of the said notification would mean the value fixed under

section 4 or section 4A or the tariff value.

(iv) Can Cenvat credit on capital goods be availed by SSI units that avail the benefit

of exemption?

Ans: Yes! 50% Cenvat Credit on Capital Goods is available in the first year of purchase

of Capital Goods and 50% can be availed in the next subsequent year as per Excise rule.

(v) The availability of CENVAT credit on capital goods under the notification?

Ans: The units can avail CENVAT credit on capital goods but the same can be utilized

for payment of duty on final products only after the turnover reaches Rs.150 lakh.

(vi) Clearances of excisable goods without payment of duty?

Ans: ABC Ltd. is a manufacturing unit situated in Haldia. In the financial year 2009-

2010 the total value of clearances for the unit was Rs.350 lakh.

The break-up of clearances is as under:

(a) Clearances worth Rs.50 lakh without payment of duty to a unit in special economic

zone.

(b) Clearances worth Rs.50 lakh exempted under job-work.

(c) Export clearances worth Rs.100 lakh (75 lakh to Sweden and 25 lakh to Nepal).

(d) Clearances worth Rs.100 lakh which are used captively to manufacture finished

products that are eligible for exemption under notification 8/2003. Such clearances

are also eligible for exemption under notification 8/2003.

(e) Clearances worth Rs.50 lakh of excisable goods in the normal course.

(vii) Reasons for clubbing of clearances of SSI units?

Maintenance of accounts of various units by a single person and at one office

A single security was in charge of security of all units

Units engaged in production and transactions assessed to sales tax and income tax

separately is a pointer to different entities.

QUESTIONAIRE 2 (Excise)

Q1: Importance of sending the unpaid excise duties?

Ans: Invoices on which excise are not paid by the company are to be maintained and

submitted to Central Excise‘s appropriate superintendent. It has a huge importance to

send the unpaid duties towards excise department i.e. not to have an imbalanced account

records, complexity in data, and interruption in business.

Q2: What are the effects on organization, if they are not maintained & followed?

Ans: Bear Penalties, Loss of reputation, Disappointments of client, disarray.

Q3: How frequently no. of cases is cancelled for invoices?

Ans: Monthly cancelled invoices are approx about 80-90.

Q4: What is the minimum period for sending the report?

Ans: The minimum period for sending the report is 24 hours.

Q5: Reasons for not paying the excise duty on invoices are as follows?

Ans: Transportation Problem, Quantity or Quality problem, Unit’s difference etc.