CE Act, 1944 MCQs

CENTRAL EXCISE OBJECTIVE QUESTIONS
1. The name of the Central Excise Act is:

(A) Central Excise Act 1985
(B) Central Excise Tariff Act 1985 (C)
(C) Central Excise Act 1944
(D) Central Excise and Salt Act 1945
2. Central Excise Act come into force w.e.f (A)

(A) 28-2-1944
(B) 28-2-1985
(C) 28-2-1945
(D) 28-2-1946
3. Central Excise Act Extends to: (A)

(A) Whole of India and extended further upto the designated areas
in the Continental Shelf and Exclusive Economic Zone
(B) Whole of India except Jammu & Kashmir
(C) Whole of India except Continental Shelf and EEZ
(D) Whole of India except Himachal Pradesh
4. Functions of Adjudicating Authority are : (B)

(A) administrative
(B) Quasi Judicial
(C) Semi administrative
5. In Central Excise Act Adjudicating Authority means: (C)

(A) Customs Officer
(B) Judicial Officer
(C) Central Excise Officer
(D) Administrative Officer
6. The power of the AA rises with his status starting from (D)
(A) Inspector ending with Assistant Commissioner
(B) Superintendent ending with Additional Commissioner
(C) Superintendent ending with Commissioner of Central Excise
(D) Assistant Commissioner ending with Chief Commissioner
of Central Excise
Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

7. Which of the following are not Adjudicating Authorities (D)
(A) Commissioner of Central Excise(Appeals)
(B) CBEC
(C) CESTAT
(D) All of the above
8. Is curing amounts to manufacture in Central Excise Act (A)

(A) Yes
(B) No
9. What are Excisable goods in Central Excise Act (B)

(A) goods that find place in Customs Tariff (Schedule I).
(B) goods that find place in Central Excise Tariff (Schedule I).
(C) goods notified by the Central Excise department annually
(D) all of the above
10 Under which section goods are defined in Central Excise Act 1944 (D)
(A) Section 2
(B) Section 3
(C) Section 4
(D) None of the above
11. Under Excise law excisable goods should possess the

following characteristics
(A) Mobility, Marketability and Excisebility (A)
(B) Mobility, Saleable
(C) Marketability and Saleable
12. In terms of Section 2(e) of Central Excise Act Factory Means

(A) It is a place where some goods are manufactured (B)
(B) It is a place where in excisable goods are manufactured
(C) It is a place where manufactured goods are sold
13. Name of fund created under Section 12-C of Central Excise Act is: (C)
(A) Consolidated Fund of India
(B) Contingent Fund of India
(C) Consumer Welfare Fund
14. Money in the Consumer Welfare Fund is used for (B)

(A) Welfare of the Central Excise Officers
(B) Welfare of the Consumers
(C) Welfare of the poor and sick people

15. What is manufacture under central excise law: (C)
(A) As a result a new product quite different from the inputs
should be obtained
(B)The finished product must have a distinct name, character and
use quite different from the inputs.
(C) Both A and B
16. Charging Section of the Central Excise Act 1944 is: (A)
(A) Section 3(1)
(B) Section 2(1)
(C) Section 4(1)
(D) Section 5
17. Central Excise duty levied on (C)

(A) all goods manufacture anywhere in the world
(B) goods manufactured by the non government companies
(C) all excisable goods manufactured or produced in India
(D) none of the above
18 All the goods mentioned in Schedule I to CETA suffer a duty called (A)
(A) Cenvat
(B) SAD
(C) BCD
(D) Both A and B
19 Cenvat stands for (C)

(A) Central tax for valuation
(B) Customs value added tax
(C) Central Value added tax
(D) Central Excise Value added tax
20 Some of the goods mentioned in Schedule II of the Central Excise Tariff (C)
Act 1985 attracts
(A) Cenvat and BCD
(B) SAD and BCD
(C) Cenvat and SAD
(D) Cenvat and E.Cess

21 Central Excise duty is not leviable on the goods manufactured or (B)
produced by:
(A) 100% EOUs
(B) SEZ
(C) STPs and BTPs
(D) Government Companies
22 Some times goods are cleared to DTA by 100% EOUs. In such case
Central Excise duty is payable as per (A)
(A) Customs Tariff
(B) Central Excise Tariff
(C) 100% EOUs Act
23 Under Production Capacity based levy, duty is payable (C)

(A) on the basis of monthly production
(B) on the basis of half-yearly production
(C) on the basis of annual production capacity
24 Is production capacity based levy applicable to the goods manufactured (B)

by 100% EOU
(A) Yes
(B) No
25 Section 4 of the Central Excise Act 1944 deals with (C)

(A) MRP based Valuation
(B) Production capacity based valuation
(C) Transaction Value
26 If the valuation is not possible under Section 4 of the Central Excise Act, (B)
in such case valuation shall be done in accordance with
(A) Central Excise Tariff Act, 1985
(B) Central Excise Valuation Rules, 2000
(C) Customs Valuation Rules, 2000
27 In respect of the Transaction Value Which of the following is not correct (D)
(A) must be a sale of the goods manufactured by the assessee
(B) the sale should be for the delivery of goods at the time and
place of removal.
(C) the buyer should not be a person related to the assessee
(D) the price should not be the sole consideration

28 Which of the following is includable in the assessable value (C)
(A) Sales Tax
(B) Excise Duty
(C) Additional consideration flowing from the buyer to the seller
29 The Government may fix tariff value for certain goods based on the (B)
(A) market trend in Retail trade
(B) market trend in wholesale trade
(C) market trend in international trade
30 Which of the following is not correct in respect of Related Person

(A) the assessee and buyer are inter-connected undertakings
(B) the assessee and buyer are relatives (C)
(C) the assessee and buyer are friends
(D) the assessee and buyer have mutual interest in the business
of one another
31 Inter Connected Undertakings are defined under (B)

(A) Central Excise Act, 1985
(B) MRTP Act, 1956
(C) Finance Act 1994
(D) Customs Act, 1962
32 What is the full form of MRTP Act (A)

(A) Monopolies and Restrictive Trade Practices Act, 1956
(B) Monopolies and Relative Trade Practices Act, 1956
(C) Monopolies and Trade Practices Act, 1956
33 What is Bonded Ware House? (A)

(A) it is the place wherein excisable goods have been permitted to be
deposited without payment of duty.
(B) it is the godown of manufacturer
(C) It is the vacant room of the manufacturer for storage of
raw material
34 Section 4-A of Central Excise Act, 1944 deals with (B)

(A) Whole Sale Price valuation
(B) MRP based valuation
(C) Specific rate based valuation
(D) Advoleram based valuation

35 Which goods are comes under MRP based valuation (C)
(A) Goods notified under Wholesale Trade Act
(B) Goods notified under Retail Trade Act
(C) Goods covered under Standard Weight an Measurements Act
36 Under MRP based valuation duty is payable on (A)

(A) MRP less abatement
(B) MRP
(C) Whole sale price
37 If one package carries more than one RSP, then the assessable value is (B)
(A) Minimum price
(B) Maximum price
(C) Average price of both
38 If the RSP declared on the package at the time of clearance of goods (C)
from the factory is altered to increase the RSP, then the Assessable
value is
(A) Original RSP
(B) Minimum Price
(C) Altered price
39 Remission of duty on goods found deficient in quantity due to natural (B)

deficiencies is allowed by the Central Excise Officer under
(A) Section 5 of the Central Excise Tariff Act
(B) Section 5(1) of the Central Excise Act, 1944
(C) Section 5(3) of the Central Excise Act, 1944
40 Under which Section Parliament empowers the Central Government to

Grant Exemption From duty of Excise (A)
(A) Section 5-A of Central Excise Act, 1944
(B) Section 5-A of Central Excise Tariff Act, 1944
(C) Section 6-A of Central Excise Act, 1944
(D) Section 6-A of Central Excise Tariff Act, 1944
41 Exemption Notifications are issued under (C)

(A) Section 5-A(1) of Central Excise Tariff Act, 1985
(B) Section 5-A(1) of Customs Act, 1962
(C) Section 5-A(1) of Central Excise Act, 1944

42 Exemption Notifications issued by Central Government are (D)
applicable to:
(A) Goods manufactured in EOU
(B) Goods manufacture in Government companies
(C) Goods manufactured in EHTP
(D) Excisable goods manufactured in DTA
43 Time Limit for the issue of the explanation to the exemption notification
is
(A) Two years from the date of original notification/order (B)
(B) One year from the date of original notification/order
(C) Four years from the date of original notification/order
(D) Six months from the date of original notification/order
44 The explanation to the exemption notification given by the Central

Government will have effect from
(A) the date on which the original notification/order was brought into (A)
force
(B) the date on which the explanation to the notification/order was
issued
(C) after one month from the explanation to the notification was issued
45 Section 6 of the Central Excise Act, 1944 deals with (C)

(A) Valuation
(B) Charging Section
(C) Registration
(D) De bonding
46 What is the punishment for( first time conviction) offence with a duty (A)
effect More than one Lakh
(A) Imprisonment upto a maximum 7 years and fine
(B) Imprisonment upto a maximum 5 years and fine
(C) Imprisonment upto a maximum 7 years
47 What is the punishment for( first time conviction) offence with a duty (B)
effect upto one Lakh
(A) Imprisonment for not more than four years or fine or both
(B) Imprisonment for not more than three years or fine or both
(C) Imprisonment for not more than two years or fine or both

48 What is the punishment for subsequent offences irrespective of money
value
(A) Imprisonment upto 10 years and fine (C)
(B) Imprisonment upto 8 years and fine
(C) Imprisonment upto 7 years and fine
49 Section 11 of Central Excise Act 1944 deals with (C)

(A) Recovery of Duties not levied or not paid or short levied or short
paid or Erroneous Refund
(B) Issue of SCN
(C) Recovery of Sums due to Government
50 Section 11-A of Central Excise Act 1944 deals with (A)

(B) Issue of SCN
51 Section 11-A(1) of Central Excise Act 1944 deals with (B)

(B) Issue of SCN
52 Time Limit for issue of SCN in the case of other than suppression of (C)
facts, fraud, collusion etc. is
(A) 2 years
(B) 3 years
(C) One year
(D) 5 years
53 Time Limit for issue of SCN in the case of frauds/collusion/willful (D)

misstatement of facts/willful suppression of facts/contravention of Act/Rules,
with an intent to evade payment of duty by the assessee or his agent is
(A) 2 years
(B) 3 years
(C) One year
(D) 5 years

54 Time limit for adjudication of show cause notices issued in respect of (B)
Fraudulent Cases
(A) 2 years
(B) One year
(C) Six months
(D) Three months
55 Time limit for adjudication of show cause notices issued in respect of (C)
cases other than Fraudulent
(A) 2 years
(B) One year
(C) Six months
(D) Three months
56 Under which section interest attracts on the duty paid short u/s 11-A(2) (B)
(A) Sec 11-A of Central Excise Act 1944
(B) Sec 11-AB(1) of Central Excise Act 1994
(C) Sec 11-D of Central Excise Act 1994
57 Where the duty determined u/s 11-A(2) has been reduced by the (C) appellate
authority interest is payable on
(A) duty determined u/s 11-A(2)
(B) 50% of the duty determined u/s 11-A(2)
(C) Reduced amount of duty
58 Where the duty determined u/s 11-A(2) has been increased by the (A)
appellate authority interest is payable on
(A) Increased amount of duty
(B) Duty determined u/s 11-A(2)
(C) 50% of the duty determined u/s 11-A(2)
59 Penalty For Short levy or non-levy in certain cases is imposed under (B)
(A) Section 11-AD of the Central Excise Act 1944
(B) Section 11-AC of the Central Excise Act 1944
(C) Section 11-AA of the Central Excise Act 1944
(D) Section 11-AE of the Central Excise Act 1944
60 What is the penalty for duty short levied or not levied (A)
(A) penalty equal to the demand amount u/s 11-A(2).
(B) penalty equal to the demand amount u/s 11-A(1)
(C) 200% of the demand amount u/s 11-A(2)

61 If the amount demanded u/s 11-A(2) and the interest thereon u/s 11-AB (B)
are paid within 30 days from the date of communication of demand, the
penalty u/s 11-AC shall be get
(A) fully waived
(B) abated 25%
(C) abated 30%
(D) abated 35%
62 Section 11-B of Central Excise Act 1994 deals with (C)

(A) Interest payable on short levy of duty
(B) Penalty payable on short levy of duty
(C) Claim for refund of duty paid in excess and interest thereon
63 Application for refund of Excise duty is submitted to: (B)

(A) Superintendent of Central Excise
(B) Assistant/Deputy Commissioner of Central Excise
(C) Development Commissioner of SEZ
64 Application for refund of Excise duty should be submitted in form : (A)

(A) Form R
(B) Form AR
(C) Form S
(D) Form ARE-1
65. Time limit for refund claim to be made (D)

(A) Two years
(B) Six months
(C) 30 days
(D) within one year from the relevant date with documentary proof
66 If the duty has been originally paid under protest by the manufacturer, (B)
then the Time limit for refund claim
(A) 30 days
(B) No time limit
(C) Six months
(D) One year
67 Section 11-BB of the Central Excise Act 1944 deals with

(A) interest payable by the department on the delay of refund (A)
(B) interest payable by the assessee in respect of refund claim
(C) interest payable for short levy of duty

68 If the refund ordered u/s 11-B(2) is not paid within three months from (B)
the date of receipt of refund application by AC/DC u/s 11-B(1),the
department shall ay interest at
(A) 6%
(B) Not below fiver percent an not exceeding thirty per cent per
annum as is for the time being fixed by the Central Government
(C) 15%
(D) 18%
69 What is the time limit for refund claim u/s 11-C(2) (A)
(A) 6 months
(B) 3 months
(C) 2 months
(D) 5 months
70 Section 11-DDA of Central Excise Act 1944 deals with (A)

(A) Attachment of property
(B) Search and Seizure
(C) Provisional Assessment
71 U/s 11-DDA of Central Excise Act 1944, department can provisionally (C)
attach the property of assessee for
(A) One year and Extension upto two years by CCCE.
(B) three months and Extension upto two years by CCCE.
(C) six months and Extension upto two years by CCCE.
72 Consumer Welfare fund is created under (B)

(A) Section 12-A of the Central Excise Act 1944
(B) Section 12-C of the Central Excise Act 1944
(C) Section 12-B of the Central Excise Act 1944
73 Is Consumer Welfare Fund is same for Central Excise, Customs and (B)
Service tax
(A) No different funds are there for central Excise, Customs and
Service tax
(B) Yes

74 The accounts of Consumer Welfare Fund are to be maintained in the (C)
format prescribed by
(A) Chief Accounts officer of the Central Excise Department
(B) Finance Ministry
(C) C&AG of India
(D) Chief Accounts Manager of Consumer Welfare Fund
75 Central Excise Rule Covered under (B)

(A) Central Excise Rules 1944
(B) Central Excise Rules 2002
(C) Central Excise Rules 1994
76 Who will pay central excise duty on molasses produced by Khandasari (B)
Sugar Factory:
(A) Manufacturer of Molasses
(B) Procurer of Molasses
(C) No duty is payable on Molasses produced by the Khandasari
Sugar Factory
77 Central Excise Duty is payable by the producer/manufacturer/storer (B)

(ware house) on ------ basis
(A) fort night basis
(B) monthly basis
(C) half yearly basis
(D) daily clearance
78 Which date is the relevant date for Tariff rate and Tariff value for all (A)
goods except Khandasari Molasses
(A) Date of removal from factory/warehouse
(B) Date of manufacture of goods
(C) Date of usage of manufactured goods
79 For goods captively consumed, the date of removal is (C)

(A) date on which goods consumed
(B) date on which goods manufacture
(C) date of issue of goods
80 In case of Cigarettes, assessment shall be done by the (A)
(A) Superintendent or Inspector of Central Excise before removal
(B) Manufacturer
(C) AC of Central Excise

81 Which commodity has physical control of the department on removal (B)
(A) Granite
(B) Cigarettes
(C) Diamonds
(D) Silver Articles
82 Under which rule assessee may clear goods on provisional assessment (B)
basis
(A) Rule 6 of Central Excise Rules 2002
(B) Rule 7(1) of Central Excise Rules 2002
(C) Rule 6(1) of Central Excise Rules 2002
83 Assessee is required to submit a bond in Form B-2 for provisional (B)

assessment. What is the value of the Bond?
(A) 2 times of estimated differential duty liability.
(B) 3 times of estimated differential duty liability.
(C) equal to the differential duty liability
84 In addition to Bond in form B-2 the assessee is required to submit (C)

security/bank guarantee for the clearances on provisional assessment. What is
the value of security?
(A) 50% of the bond value
(B) 75% of the bond value
(C) 25% of the bond value
85 Provisional Assessment should be finalized within (B)

(A) one year
(B) six months
(C) three months
(D) one month
86 Chief commissioner of Central Excise may extend Time limit for (C)
finalization of provisional assessment for a period of
(A) 3 years
(B) 2 years
(C) Without any time limit
87 If final duty payable is more than the duty paid on provisional basis, (B)
assessee shall pay
(A) interest and penalty
(B) interest only
(C) no interest and penalty

88 Due date
th
for payment of duty by the SSI units is (A)
(A) 5 of the month following the quarter
th
(B) 5 of the next month
th
(C) 15 of the month following the quarter
89 Central Excise Registration is not necessary in the case of (D)

(A) trader
(B) Warehousing
(C) First and Second Stage dealer
(D) Whole sale traders other than First and Second Stage dealer
90 DSA stands for (C)

(A) Daily Stores Account
(B) Daily Sales Account
(C) Daily Stock Account
91 The first page and the last page of the daily stock account shall be (C)
authenticated by the
(A) Commissioner of Central Excise
(B) Superintendent of Central Excise
(C) assessee or his authorized agent
92 DSA should be preserved for (D)

(A) one year
(B) three years
(C) five years
(D) five years immediately after the financial year
93 Excisable goods other than cigarettes shall be removed from (C)

factory/warehouse on invoice signed by
(B) Superintendent of Central Excise
(C) assessee or his authorized agent
94 Invoices shall be prepared in (B)

(A) Duplicate
(B) Triplicate
(C) Quadruplicate
95 Original invoice for buyer, triplicate for assessee, duplicate for (C)
(A) Range Officer
(B) Insurance agent
(C) Transporter

96 Before making use of the Invoice Book, its Serial Number shall be (B)
intimated to the
(B) Range Officer
(C) Asst Commissioner of Division
97 Central Excise duty should be rounded off to the nearest (C)

(A) Ten rupees
(B) Hundred rupees
(C) Rupee
98 Whenever the invoice is cancelled, intimation to this effect has to be (A)

intimated to the
(A) jurisdictional Range officer
(B) Asst Commissioner of the Central Excise
(C) Chief Commissioner of the Central Excise
99 Due date for filing of monthly return by the assessee is (B)

th
(A) 15 of the next month
th
th
(C) 5 of the next month
100 Monthly return should be submitted by the assessee in the Form (B)
(A) ER-2
(B) ER-1
(C) ER-4
(D) ER-3
101 Due date for filing of Quarterly return by SSI units: (A)
(A) within 10 days after ending of the quarter
th
th
(C) 15 of the next month
102 SSI units file Quarterly Return in the Form (C)

(A) ER-1
(B) ER-2
(C) ER-3
(D) ER-4

103 e-filing of returns is compulsory, where the Excise duty (CENVAT + (D)
PLA) paid by the assessee in a financial year is
(A) more than one crore
(B) more than 50 lakhs
(C) More than 1 lakh
(D) Rs 10 lakh or more
104 Assessees who paid in the previous financial year ED of Rs.100 lakh or (B)
more (CENVAT + PLA) shall also file ‘Electronically’
(A) Annual Installed capacity statement
(B) Annual Financial Information Statement
(C) Details of Major Inputs
105 Annual Financial Information Statement should be submitted in the (B)

form
(A) ER-3
(B) ER-4
(C) ER-5
(D) ER-6
106 Due date for submission of Annual Financial Information Statement for (A)
the previous year
th
(A) by 30 November of the Current year
th
(B) by 30 June of Current year
st
(C) by 31 October of Current year
107 Annual Installed Capacity Statement should be submitted in the form (C)
(A) ER-6
(B) ER-5
(C) ER-7
(D) ER-4
108 Due date th

for submission of Annual Installed Capacity Statement is (A)
(A) 30 April of the succeeding financial year.
th
(B) 30 June of the succeeding financial year.
th
(C) 30 September of the succeeding financial year.
109 LTU Stands for (B)

(A) Larger Turnover unit
(B) Large Tax payer Unit
(C) Large Transport Unit

110 Who can opt LTU scheme (A)
(A) Assessees under Central Excise, Service Tax and Income Tax
laws who have paid Rs. Five Crore or more through PLA or
More than Rs. Ten Crore as advance tax/corporation tax
(B) Assessees under Central Excise, Service Tax and Income Tax
laws who have paid Rs. One Crore or more through PLA or
More than Rs. Ten Crore as advance tax/corporation tax
(C) Assessees under Central Excise, Service Tax and Income Tax
laws who have paid Rs. Five Crore or more through PLA or
More than Rs. One Crore as advance tax/corporation tax
111 For opting out of the LTU Scheme ---- notice is necessary (D)
(A) 6 months notice
(B) 3 months notice
(C) One year notice
(D) 30 days notice
112 100% EOU shall maintain Daily Stock Account in Form (A)
(A) AC-1
(B) AC-2
(C) AC-3
(D) AC-4
113 100% EOU shall submit monthly return in Form (B)

(A) ER-1
(B) ER-2
(C) ER-3
(D) ER-4
114 U/R 18 of Central Excise Rules 2002, Rebate can be allowed in the (D)
following situation
(A) Goods cleared to SEZ units
(B) Goods cleared to 100% EOUs
(C) Duty paid on raw materials imported
(D) When goods are exported the Excise Duty paid on the exported
goods or the Excise Duty paid on the materials used in the
manufacture of the exported goods
115 Export goods are cleared from factory in form ARE-1 in (B)
(A) Duplicate
(B) Quintuplicate
(C) Triplicate

116 Assessable value of the goods captively consumed (A)
(A) 110% of the Cost of production
(B) 120% of the Cost of production
(C) 100% of the Cost of production
117 Name of the Central Excise Tariff Act is (B)

(A) Central Excise Tariff Act, 1983
(B) Central Excise Tariff Act, 1985
(C) Central Excise Tariff Act, 1984
118 Central Excise Tariff Act came in to force w.e.f. (C)

(A) 28-02-1987
(B) 28-02-1985
(C) 28-02-1986
(D) 28-02-1988
119 CETA extends to (A)

(A) Whole of India
(B) Whole of India except Jammu and Kashmir
(C) Whole of India except Himachal Paradesh
120 Through which section, the Central Government (Executive (B)

Government) has been empowered to increase duty leviable u/s 2 of CETA in
respect of any goods
(A) U/s 3(1) of Central Excise Act, 1944
(B) U/s 3(1) of Central Excise Tariff Act, 1985
(C) U/s 4(1) of Central Excise Tariff Act, 1985
121 If the existing rate is NIL , the rate of duty to be notified should not be (C)
more than
(A) 20% of advalorem
(B) 30% of advalorem
(C) 50% of advalorem
122 How many schedules are there in CETA 1985 (A)

(A) 3
(B) 2
(C) 1
(D) 4

123 How may Sections are there in CETA 1985 (B)
(A) 20
(B) 21
(C) 22
(D) 23
124 How many Chapters are there in CETA 1985 (C)

(A) 96
(B) 97
(C) 98
(D) 91
125 Which chapters of CETA 1985 are kept blank for possible use in future (A)
(A) Chapter 77, 97 and 98
(B) Chapter 76,97 and 98
(C) Chapter 77,96 and 97
126 Eight Digit code is followed with effect from (B)

(A) 28-02-2006
(B) 28-02-2005
(C) 28-02-2004
127 First four digits of code denotes (A)

(A) Chapter Heading
(B) Chapter Sub Heading
(C) Tariff item Number
128 What is the full form of HSN (B)

(A) Harmonised status of numbers
(B) Harmonised System of Nomenclature
(C) Hexa system of Nomenclature
129 Popular name of the HSN is (C)

(A) Mexico Nomenclature
(B) Italian Nomenclature
(C) Brussels Nomenclature
130 Which section allows to amend Central Excise Act 1944 (B)
(A) Section 4 of the Central Excise Act 1944
(B) Section 4 of the Central Excise Act 1985
(C) Rule 4 of the Central Excise Rules, 2002
(D) Rule 4 of the Central Excise Valuation Rules, 2000

131 Under which Section Central Government amend First and Schedules (B)
of Central Excise Tariff Act, 1985
(A) Section 4 of Central Excise Tariff Act, 1985
(B) Section 5 of Central Excise Tariff Act, 1985
(C) Section 4(1) of Central Excise Tariff Act, 1985
(D) Section 5(1) of Central Excise Tariff Act, 1985
132 In case of Khandasari Molasses date for determination of duty and (B) tariff
valuation
(A) Date on which Molasses cleared from the factory
(B) Date on which Molasses received by the procurer
(C) Date on which Molasses produced
133 In case of Molasses produced by Khandasari Sugar factory who will (A) pay
the Central Excise Duty
(A) procurer
(B) manufacturer
(C) no duty on molasses
134 Match the following: (C)

1) Rule 4 of CE Rules 2002 (a) Date for determination of duty
2) Rule 5 of CE Rules 2002 (b) Provisional Assessment
3) Rule 6 of CE Rules 2002 (c) Duty Payable on Removal
4) Rule 7 of CE Rules 2002 (d) Assessment of duty
(A) 1-a 2-c 3-d 4-b (B) 1-b 2-d 3-c 4-a
(C) 1-c 2-a 3-d 4-b (D) 1-c 2-d 3-a 4-b
135 Who will permit storage of goods outside the factory without payment (C)
of duty subject to certain conditions.
(A) Range Officer
(B) Inspector
(C) Commissioner of Central Excise
(D) Chief Commissioner of Central Excise
136 Rule 7 of Central Excise Rules, 2002 allows assessee to pay duty on (A)
(A) Provisional Assessment basis
(B) Transaction value
(C) Tariff Value

137 CCCE can extend time limit for finalization of provisional assessment (D)
upto a period of
(A) 6 months
(B) One year
(C) Two years
(D) No time limit
138 In respect of SSIs, payment of duty on quarterly is available only if the (D)
Turn Over in the previous financial year is not more than
(A) Rs 90 lakhs
(B) Rs 1.50 crore
(C) Rs 3.50 crore
(D) Rs 4.00 crore
139 Compounded Levy Scheme applicable to (B)

(A) Pan Masala and tobacco products
(B) Aluminum Steel patties
(C) Iron sheets
140 Compounded Levy Scheme is (B)

(A) mandatory
(B) optional
(C) applicable to every assessee automatically
141 Is assessee paying duty under compounded levy scheme eligible for (B)
taking cenvat credit on inputs and capital goods
(A) Yes
(B) No
(C) Eligible after crossing turnover Rs 1.50 lakh
142 In which form 100% EOUs has to maintain DSA (A)

(A) Form AC-1
(B) Form AC-2
(C) Form AC-3
(D) Form AC

143 Under which Rule assessee can export any excisable goods from the (B)
factory without payment of duty
(A) Rule 18 of Central Excise Rules 2002
(B) Rule 19(1) of Central Excise Rules 2002
(C) Rule 19(2) of Central Excise Rules 2002
144 Penalty under Rule 25 of Central Excise Rules 2002 equal to (C)
(A) not exceeding the Duty on the offending goods or Rs.5000
whichever is greater
(B) not exceeding the Duty on the offending goods or Rs.4000
(C) not exceeding the Duty on the offending goods or Rs.2000
145 General Penalty under Rule 27 of Central Excise Rules 2002 is: (A)
(A) Penalty upto Rs.5000/- and Confiscation of goods
(B) Penalty upto Rs.2000/- and Confiscation of goods
(C) Penalty upto Rs.3000/- and Confiscation of goods
146 Central Excise Valuation Rules, 2000 come in to force w.e.f (A)
(A) 1.7.2000
(B) 1.8.2000
(C) 1.4.2000
147 Normal Transaction value means (B)

(A) transaction value at which the lowest aggregate quantity
of goods are sold on a particular day .
(B) transaction value at which the greatest aggregate quantity
of goods are sold on a particular day.
(C) transaction value at which the greatest aggregate quantity
of goods are sold in a month
(D) transaction value at which the least aggregate quantity
of goods are sold in a month

148 U/r 4 of CE Valuation Rules,2000, if price at the time of removal is not (C)
known, then the value for discharging duty liability is
(A) value mentioned in the CAS-4 Certificate
(B) based on NTV
(C) based on price charged nearest to the time of removal
149 In which case valuation will be done in accordance with the Rule 5 of (A)
Central Excise Valuation Rules, 2000
(A) if price is for delivery at a place other than the place of removal
(B) if price is for delivery at factory gate
(C) if price is for sale and at the time of removal
150 In which case valuation will be done in accordance with the Rule 6 of (B)
(A) if price is for delivery at a place other than the place of removal
(B) Price Sole consideration is not satisfied
(C) Goods cleared for depot
151 If goods are sold from depot then valuation will be done in accordance (D)
with
(A) Rule 6 of Central Excise Valuation Rules, 2000
(B) Rule 8 of Central Excise Valuation Rules, 2000
(C) Rule 9 of Central Excise Valuation Rules, 2000
(D) Rule 7 of Central Excise Valuation Rules, 2000
152 Valuation for captive consumption will be done u/r (A)

(A) Rule 8 of Central Excise Valuation Rules, 2000
(B) Rule 7 of Central Excise Valuation Rules, 2000
(C) Rule 4 of Central Excise Valuation Rules, 2000
(D) Rule 5 of Central Excise Valuation Rules, 200
153 In case of captive consumption the assessable value is (B)

(A) 110% of the invoice value
(B) 110% of the Cost of production
(C) 110% of the NTV

154 In which case valuation will be done in accordance with the Rule 9 of (A)
(A) Sale to Related persons
(B) Sale to ICUs
(C) Sale to Government companies
155 In which case valuation will be done in accordance with the Rule 10 of (B)
A. Sale to Related persons
B. Sale to ICUs
C. Sale to PSUs
D. None of the above
156 Name of the Cenvat Credit Rules (D)

(A) Cenvat Credit Rules,2002
(B) Cenvat Credit Rules,2000
(C) Cenvat Credit Rules,2003
(D) Cenvat Credit Rules,2004
157 Cenvat Credit Rules are come into force w.e.f (A)
(A) 10.09.2004
(B) 10.08.2004
(C) 10.07.2004
158 Full form of CENVAT (C)

(A) Central Excise Value Added Tax
(B) Customs Value Added Tax
(C) Central Value Added Tax
159 Cenvat credit Rules, 2004 applicable to (B)

(A) Whole of India
(B) Whole of India except Jammu and Kashmir in r/o of service tax
(C) Whole of India except Northern States

160 Match the following: (D)
1) Rule 2(a) of Cenvat credit Rules 2002 (a) Inputs
2) Rule 2(d) of Cenvat credit Rules 2002 (b) Capital Goods
3) Rule 2(e) of Cenvat credit Rules 2002 (c) Exempted Goods
4) Rule 2(k) of Cenvat credit Rules 2002 (d) Exempted services
(A) 1-a 2-c 3-d 4-b (B) 1-b 2-d 3-c 4-a
(C) 1-c 2-a 3-d 4-b (D) 1-b 2-c 3- 4-a
161 Which of the following is not inputs (D)

(A) raw material
(B) accessories
(C) paints
(D) LDO and HSD
162 Trading is (B)

(A) Taxable service
(B) Exempted service
(C) None of the above
163 Match the following: (A)

1) Rule 2(m) of Cenvat credit Rules 2002 (a) Input service
2) Rule 2(n) of Cenvat credit Rules 2002 (b) Output Service
3) Rule 2(p) of Cenvat credit Rules 2002 (c) Job Work
4) Rule 2(l) of Cenvat credit Rules 2002 (d) IPS Distributor
(A) 1-d 2-c 3-b 4-a (B) 1-b 2-d 3-c 4-a
(C) 1-c 2-a 3-d 4-b (D) 1-b 2-c 3- 4-a
164 Which is the following is not eligible to take cenvat credit (D)
(A) Central Excise Duty
(B) Education Cess on Central Excise Duty
(C) Service Tax
(D) Customs Duty
165 Which of the following is not eligible to take cenvat credit by the output (B)
service provider
(A) CVD
(B) Spl.CVD
(C) Central Excise Duty
(D) Education on Excise Duty

166 NCCD stands for (C)
(A) National Council for Central Excise Duty
(B) National Council for Customs Duty
(C) National Calamity Contingent Duty
167 Clean Energy Cess is levied on (A)

(A) coal, lignite, and peat
(B) Tobacco products
(C) Aluminium Pattas
168 Clean Energy Cess come into force w.e.f. (B)

(A) 1.7.2011
(B) 1.7.2010
(C) 1.4.2012
(D) 1.4.2010
169 Due datethfor payment of Clean Energy Cess (A)

(A) 5 of the second month after the month of removal
th
(B) 15 of the second month after the month of removal
th
(C) 10 of the second month after the month of removal
170 When the manufacturer or provider of OPS removes IP or CG as such, (C)

then
(A) he shall pay an amount equal to the credit taken
(B) the removal shall be under cover of invoice
(C) both A and B are correct
(D) A is correct
171 If the inputs or capital goods removed for providing output service by (D)
the output service provider then
(A) he shall pay an amount equal to the credit taken
(B) the removal shall be under cover of invoice
(C) both A and B are correct
(D) No need to pay any amount

172 If Capital goods are used and cleared (not as scrap) then the assessee (A) has
to
(A) Pay an amount equal to the credit taken reduced by the
percentage points for each quarters of a year or part thereof
calculated by the straight line method
(B) Pay duty on transaction value
(C) No need to pay any duty
173 If CG is cleared as waste and scrap the manufacturer shall pay (B)
(A) Pay an amount equal to the credit taken reduced by the percentage
points for each quarters of a year or part thereof calculated by the
straight line method
(B) an amount equal to duty payable on transaction value
(C) No need to pay any duty
174 When cenvat credit on Inputs can be taken (D)

(A) as per the assesses choice
(B) on receipt of invoice
(C) on payment of amount
(D) on receipt of I.P in the factory of the manufacturer or in the
premises of the provider of OPS
175 In respect of Capital Goods how much credit is available in the year of (B)
receipt
(A) 100%
(B) 50%
(C) 75%
(D) 25%
176 SSIs are eligible for ____ credit in the year of capital goods received (A)
(A) 100%
(B) 50%
(C) Credit not available to SSIs as they are claiming benefit

177 IP or CGs sent for repairs, reconditioning or job work has to be (B) received
back within
(A) one month
(B) 180 days
(C) One year
178 If IPs or CGs sent for repairs, reconditioning etc are not received back (A)
within 180 days then assessee has to
(A) pay an amount equivalent to the CENVAT Credit attributable
to the goods by debiting CENVAT credit or otherwise.
(B) No need to pay any amount
(C) This has to brought to the notice of the department
179 A service provider can file revised return within (B)

(A) one month
(B) within 60 days from the date of original return submitted
(C) within one year
180 A declaration of information relating to the principal IPs has to be (D)

submitted in the form
(A) ER-1
(B) ER-4
(C) ER-6
(D) ER-5
181 Due date for submission

st
of ER-5 Return (B)
(A) March 31 every year
th
(B) April 30 every year
th
(C) November 30 every year
182 Submission of ER-5 Return is mandatory for all the assesses who (A)
(A) has paid ED Rs 1 crore or more
(B) has paid ED Rs 10 lakhs or more
(C) has paid ED Rs 25 lakhs or more

183 Due date for submission of ER-6 Return (C)
th
(A) 5 of next month for the principal IPs received an consumed
w.r.t the quantity of F.P manufactured
th
(B) 15 of next month for the principal IPs received an consumed
th
(C) 10 of next month for the principal IPs received an consumed
184 General penalty under Cenvat Credit Rules, 2004 is (B)

(A) not more than Rs 2,000
(B) not more than Rs 5,000
(C) not more than Rs 10,000
185 INTOSAI stands for (A)

(A) International Organisation of Supreme Audit Institutions
(B) International Organisation of Special Audit Institutions
(C) International Organisation of Statistical Audit Institutes
186 Auditing Standards consists of (B)

(A) Three parts
(B) Four parts
(C) One part
187 C&AG of India adopted the (C)

(A) SOSAI Auditing Standards
(B) British Auditing Standards
(C) INTOSAIs Auditing Standards
188 Who should collect the Commissionerate/ Division/ Range wise details (B) of
all the assessees from the department/ assessees and has to maintain database
(A) C&AG office, New Delhi
(B) CERA Hqrs of the AG/PDA(Central)
(C) PDA(Central), Mumbai

189 Units which are paying central Excise Duty more than Rs 5 crore (A)
through PLA are classified as
(A) Category A Units
(B) Category B units
(C) Category C Units
190 Category A units has to be planned for audit (B)

(A) bi-annual
(B) annual
(C) Tri-annual
191 Units which are paying central Excise Duty more than Rs 1 cored and (A)
less than Rs 5 crore through PLA are classified as
(A) Category B units
(B) Category C units
(C) Category A units
192 Category B units has to be planned for audit (B)

(A) bi-annual
(B) annual
(C) Tri-annual
193 Category B units will be selected for audit on the basis of (C)
(A) instructions from Hqrs Office
(B) at the choice of CERA Hqrs
(C) Risk analysis
(D) Randomly
194 Category C units may be programmed for audit only for the purpose (A)
of
(A) system reviews/issue based or commodity based identified by the
headquarters
(B) at the instance of department
(C) at the discretion of PDA(Central)

195 Audit plant is for (C)
(A) monthly
(B) quarterly
(C) annually
196 Audit plan should be approved by (B)

(A) Headquarters Office
(B) PDA or AG
(C) Group Officer
197 CERA filed parties consist of (A)

(A) not less than 3 members
(B) not less than 4 members
(C) not less than 2 members
198 Tour programme should be prepared for (D)

(A) annual
(B) monthly
(C) half yearly
(D) Quarterly
199 Audit programme should be intimated to department and to the (A) assessee
(A) 2 weeks before taking up of audit
(B) 3 weeks before taking up of audit
(C) On month before taking up of audit
200 All objections should be issued in the form of (C)

(A) brief Notes
(B) Audit Enquiry
(C) Preliminary objection Memos or HMs
201 Preliminary objection Memos should be issued to the (A)

(A) Jurisdictional Range officer
(B) AC/DC of the Division
(C) Commissioner of Central Excise

202 Preliminary objection Memos should be signed by the (B)
(A) AAO
(B) SAO
(C) Supervisor
(D) Sr.Ar
203 Local Audit Report should be drafted in (A)

(A) Three parts
(B) Four Parts
(C) Two Parts
204 Part-1 of LAR contains (B)

(A) objections raised during the current year
(B) outstanding objections of previous audit
(C) high money value objections
205 Part-IIA of LAR contains (B)

(A) objections with a money value less than Rs 10 lakhs
(B) objections which are likely to find a place in the Audit Report of
Comptroller and Auditor General of India
(C) objections with a money value more than Rs 10,000
206 Draft Inspection Report Should be prepared by (D)

(A) Sr.Ar
(B) SAO
(C) Supvr
(D) AAO
207 Draft Inspection Report Should be Reviewed by (A)

(A) SAO
(B) AAO
(C) Sr.Ar
(D) DAG

208 IRs should be submitted to the Local Headquarters within (D)
(A) 15 days of completion of audit
(B) 10 days of completion of audit
(C) One week of completion of audit
(D) 5 days of completion of audit
209 IR should be approved by the

(A) SAO (C)
(B) PDA
(C) Group Officer
210 Cases involving revenue effect over Rs 1 crore may be submitted to the (B)
(A) DAG
(B) PDA or AG
(C) CAG of India
211 LAR should be issued to the department (A)

(A) within a month from the date of completion of audit
(B) within two months from the date of completion of audit
(C) within 15days from the date of completion of audit
(D) within 10days from the date of completion of audit
212 Objections taken in concurrent audit or local audit should be entered in (D)
(A) PDP Register
(B) SOF Register
(C) LAR Register
(D) Objection Book
213 Objection Book should be closed for every (A)

(A) month
(B) quarter ending
(C) six months
214 Objection Book should be closed under the signature of (B)

(A) AAO of Local Hqrs
(B) SAO of Local Hqrs
(C) Group Officer

215 Objection Book should be reviewed by (A)
(A) Group Officer
(B) PDA/AG
(C) Branch Officer
216 Objection Book should be prepared (C)

(A) Each Range wise
(B) Each Division wise
(C) Each Commissionerate wise
217 Due date for submission of PDP register for review of Group Officer or (A)
PDA is
th
(A) 10 of every month
th
(B) 5 of every month
th
(C) 15 of every month
218 SOFs forwarded to the commissionerates should get confirmation of (B)

facts within
(A) 4 weeks
(B) 6 weeks
(C) One month
(D) Two months
219 DP Money Value in respect of Central Excise and Service Tax is (B)
(A) Rs 5 lakhs
(B) Rs 10 lakhs
(C) Rs 20 lakhs
(D) Rs 7.5 lakhs
220 Due date th

for submission of Calendar of Return is (A)
(A) 10 of every month
th
(B) 5 of every month
th
(C) 15 of every month

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CENTRAL EXCISE OBJECTIVE QUESTIONS

1. The name of the Central Excise Act is:

2. Central Excise Act come into force w.e.f (A)

3. Central Excise Act Extends to: (A)

4. Functions of Adjudicating Authority are : (B)

5. In Central Excise Act Adjudicating Authority means: (C)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

8. Is curing amounts to manufacture in Central Excise Act (A)

9. What are Excisable goods in Central Excise Act (B)

11. Under Excise law excisable goods should possess the

12. In terms of Section 2(e) of Central Excise Act Factory Means

14. Money in the Consumer Welfare Fund is used for (B)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

17. Central Excise duty levied on (C)

19 Cenvat stands for (C)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

23 Under Production Capacity based levy, duty is payable (C)

24 Is production capacity based levy applicable to the goods manufactured (B)

25 Section 4 of the Central Excise Act 1944 deals with (C)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

30 Which of the following is not correct in respect of Related Person

31 Inter Connected Undertakings are defined under (B)

32 What is the full form of MRTP Act (A)

33 What is Bonded Ware House? (A)

34 Section 4-A of Central Excise Act, 1944 deals with (B)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

36 Under MRP based valuation duty is payable on (A)

39 Remission of duty on goods found deficient in quantity due to natural (B)

40 Under which Section Parliament empowers the Central Government to

41 Exemption Notifications are issued under (C)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

44 The explanation to the exemption notification given by the Central

45 Section 6 of the Central Excise Act, 1944 deals with (C)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

49 Section 11 of Central Excise Act 1944 deals with (C)

50 Section 11-A of Central Excise Act 1944 deals with (A)

51 Section 11-A(1) of Central Excise Act 1944 deals with (B)

53 Time Limit for issue of SCN in the case of frauds/collusion/willful (D)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

62 Section 11-B of Central Excise Act 1994 deals with (C)

63 Application for refund of Excise duty is submitted to: (B)

64 Application for refund of Excise duty should be submitted in form : (A)

65. Time limit for refund claim to be made (D)

67 Section 11-BB of the Central Excise Act 1944 deals with

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

70 Section 11-DDA of Central Excise Act 1944 deals with (A)

72 Consumer Welfare fund is created under (B)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

75 Central Excise Rule Covered under (B)

77 Central Excise Duty is payable by the producer/manufacturer/storer (B)

79 For goods captively consumed, the date of removal is (C)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

83 Assessee is required to submit a bond in Form B-2 for provisional (B)

84 In addition to Bond in form B-2 the assessee is required to submit (C)

85 Provisional Assessment should be finalized within (B)

Material Prepared by Surampudi V V S Prasad,AAO(DP Cell), PDA(Central), Hyd

89 Central Excise Registration is not necessary in the case of (D)

90 DSA stands for (C)