APEA Section 22 : Modes of levying duties

Explanation using Example

Example 1: Levying Excise Duty on a Brewery

Introduction: ABC Brewery in Andhra Pradesh produces a variety of beers. The brewery is required to pay excise duty on the beer it manufactures.

Application: According to Section 22(a) of the Andhra Pradesh Excise Act, 1968, the excise duty can be levied rateably on the quantity of beer produced. This means ABC Brewery will be taxed based on the volume of beer it manufactures. Alternatively, the duty could be ad valorem, meaning it would be based on the value of the beer produced.

Outcome: If ABC Brewery fails to pay the appropriate excise duty, it may face penalties under the Act, which could include fines or legal action. Compliance requires accurate record-keeping of production volumes and values.

Conclusion: By adhering to the excise duty requirements, ABC Brewery ensures legal compliance and avoids potential penalties.

Example 2: Tax on Toddy Trees

Introduction: Mr. Rao owns a plantation of palm trees in Andhra Pradesh from which toddy is drawn. He needs to understand how the excise duty applies to his operation.

Application: Section 22(c) of the Andhra Pradesh Excise Act, 1968, specifies that excise duty on toddy is levied as a tax on each variety of excise tree, considering the period during which the tree yields toddy. Mr. Rao must pay a tax based on the number and type of trees he has and the duration th...

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