MCQs on Central Excise Tariff Act and Manual

Multiple Choice Questions (MCQs) based on the provisions of Chapter 24 of Section IV and Chapter 27 of Section V of the Central Excise Tariff Act:

Chapter 24: Tobacco and Manufactured Tobacco Substitutes

Which of the following is covered under Chapter 24 of the Central Excise Tariff Act?
- a) Crude Petroleum
- b) Coal and Coke
- c) Cigarettes and Manufactured Tobacco
- d) Liquefied Petroleum Gas (LPG)
Answer: c) Cigarettes and Manufactured Tobacco
Under which tariff heading would you classify 'Cigars' and 'Cheroots'?
- a) 2401
- b) 2402
- c) 2403
- d) 2710
Answer: b) 2402
Which of the following is NOT a form of tobacco product classified under Chapter 24?
- a) Snuff
- b) Chewing Tobacco
- c) Crude Oil
- d) Cigarettes
Answer: c) Crude Oil
The excise duties on tobacco products under Chapter 24 are typically:
- a) Ad valorem duties (percentage-based)
- b) Specific duties (based on quantity or volume)
- c) Nil duties
- d) Transaction-based duties
Answer: b) Specific duties (based on quantity or volume)
Which of the following is a primary health regulation associated with tobacco products under Chapter 24?
- a) Labeling with health warnings
- b) Reduction in the quantity of tobacco
- c) Manufacturing restrictions
- d) Licensing of manufacturers
Answer: a) Labeling with health warnings

Chapter 27: Mineral Fuels, Mineral Oils, and Products of Their Distillation

Which of the following is classified under Chapter 27 of the Central Excise Tariff Act?
- a) Coal
- b) Tobacco products
- c) Liquefied Natural Gas (LNG)
- d) Both a and c
Answer: d) Both a and c
Which of the following petroleum products attracts the highest excise duties?
- a) Diesel
- b) Kerosene
- c) Petrol
- d) Coal
Answer: c) Petrol
What is the basis for calculating excise duty on petroleum products like petrol and diesel?
- a) Weight of the product
- b) Volume of the product
- c) Retail sale price or specific rates
- d) Type of packaging
Answer: c) Retail sale price or specific rates
Which of the following is an exempted category under Chapter 27 for excise duty purposes?
- a) Petrol exported out of India
- b) Crude oil for domestic use
- c) Liquefied Petroleum Gas (LPG) used for industrial purposes
- d) All of the above
Answer: a) Petrol exported out of India
Which heading of Chapter 27 covers the classification for crude oil and refined petroleum products?
- a) 2701
- b) 2710
- c) 2707
- d) 2713
Answer: b) 2710
Which of the following is the duty rate structure applied to mineral oils in Chapter 27?
- a) Ad valorem duties (percentage-based)
- b) Specific duties based on quantity or volume
- c) A mix of ad valorem and specific duties
- d) No duties on mineral oils
Answer: c) A mix of ad valorem and specific duties
Which of the following is NOT included in the products covered by Chapter 27?
- a) Coal
- b) Kerosene
- c) Naphtha
- d) Herbal Cigarettes
Answer: d) Herbal Cigarettes
The Government provides subsidies for which of the following petroleum products?
- a) Diesel
- b) LPG (for domestic use)
- c) Aviation Turbine Fuel (ATF)
- d) Coal
Answer: b) LPG (for domestic use)
Which of the following is a key environmental concern associated with petroleum products under Chapter 27?
- a) Coal mining
- b) Carbon emissions from fossil fuels
- c) Soil erosion due to oil extraction
- d) Deforestation caused by petroleum exploration
Answer: b) Carbon emissions from fossil fuels
What is the key regulatory body that oversees excise duties on petroleum products in India?
- a) Ministry of Finance
- b) Ministry of Petroleum and Natural Gas
- c) Central Excise Department
- d) Ministry of Environment, Forest and Climate Change
Answer: b) Ministry of Petroleum and Natural Gas

These MCQs can help reinforce your understanding of the provisions under Chapter 24 and Chapter 27 of the Central Excise Tariff Act.

Here are additional Multiple Choice Questions (MCQs) covering a broader range of topics within Chapter 24 (Tobacco and Manufactured Tobacco Substitutes) and Chapter 27 (Mineral Fuels, Mineral Oils, and Products of Their Distillation) of the Central Excise Tariff Act:

Chapter 24: Tobacco and Manufactured Tobacco Substitutes

Which of the following tobacco products is specifically classified under tariff heading 2401?
- a) Cigarettes
- b) Cigar
- c) Unmanufactured tobacco
- d) Chewing tobacco
Answer: c) Unmanufactured tobacco
Which of the following products falls under the excise duty structure of tariff heading 2402?
- a) Snuff
- b) Cigars
- c) Tobacco in bulk form
- d) Herbal cigarettes
Answer: b) Cigars
What is the purpose of imposing excise duties on tobacco products under Chapter 24?
- a) To encourage consumption of tobacco products
- b) To regulate the pricing and control consumption
- c) To support the tobacco industry's expansion
- d) To boost international exports of tobacco
Answer: b) To regulate the pricing and control consumption
Which type of excise duty is levied on cigarettes, cigars, and chewing tobacco under Chapter 24?
- a) Ad valorem duty
- b) Specific duty
- c) A combination of ad valorem and specific duty
- d) No duty is levied
Answer: b) Specific duty
Under the Central Excise Act, 1944, tobacco manufacturers must comply with which of the following packaging regulations?
- a) The product must be packaged in biodegradable materials.
- b) Health warnings must be clearly visible on packaging.
- c) The product must be packaged in at least 100-gram quantities.
- d) Packaging must include the brand's origin country.
Answer: b) Health warnings must be clearly visible on packaging.
What is the status of excise duty on tobacco products intended for export under Chapter 24?
- a) Duty is levied at a reduced rate.
- b) Tobacco products intended for export are exempt from excise duty.
- c) Exported tobacco products are subject to the same duty as domestic products.
- d) Exported tobacco products are taxed based on the destination country.
Answer: b) Tobacco products intended for export are exempt from excise duty.
Which of the following tobacco products is classified under tariff heading 2403?
- a) Cigarettes
- b) Snuff
- c) Cigars
- d) Loose tobacco
Answer: b) Snuff

Chapter 27: Mineral Fuels, Mineral Oils, and Products of Their Distillation

Which of the following is covered under tariff heading 2701?
- a) Petroleum oils
- b) Coal and briquettes
- c) Liquefied natural gas (LNG)
- d) Lubricating oils
Answer: b) Coal and briquettes
Which of the following is NOT subject to excise duty under Chapter 27?
- a) Crude petroleum
- b) Kerosene
- c) Coal
- d) Steel
Answer: d) Steel
The excise duty on petrol is calculated based on:
- a) Weight of the product
- b) Volume of the product
- c) The sale price or retail price
- d) Environmental impact
Answer: c) The sale price or retail price
Which product is classified under heading 2710 of Chapter 27?
- a) Crude oil
- b) Coal
- c) Bitumen
- d) LPG
Answer: a) Crude oil
Under which of the following tariff headings are 'aviation turbine fuel (ATF)' and 'naphtha' classified?
- a) 2710
- b) 2707
- c) 2713
- d) 2701
Answer: a) 2710
What is the excise duty rate structure for coal and coke under Chapter 27?
- a) Ad valorem duty (percentage-based)
- b) Specific duty based on weight
- c) Specific duty based on volume
- d) No excise duty
Answer: b) Specific duty based on weight
Which of the following products is not exempt from excise duty under Chapter 27 when exported from India?
- a) Coal
- b) Petroleum products
- c) Kerosene
- d) Liquefied Petroleum Gas (LPG)
Answer: c) Kerosene
Which of the following is a key government strategy to regulate excise duties on petroleum products?
- a) Establishing import duties on crude oil
- b) Providing subsidies on LPG for domestic use
- c) Banning all petroleum products
- d) Requiring all petroleum companies to manufacture locally
Answer: b) Providing subsidies on LPG for domestic use
Which of the following petroleum products is most likely to have a specific excise duty imposed based on volume rather than weight?
- a) Coal
- b) Crude oil
- c) Petrol
- d) Petroleum coke
Answer: c) Petrol
Which tariff heading applies to 'lubricating oils' and 'petroleum bitumen' under Chapter 27?
- a) 2701
- b) 2713
- c) 2710
- d) 2707
Answer: b) 2713

Mixed MCQs: Both Chapter 24 and Chapter 27

What is the primary objective of excise duties on tobacco and petroleum products under the Central Excise Tariff Act?
- a) To promote exports
- b) To regulate prices and discourage harmful consumption
- c) To subsidize industries in these sectors
- d) To encourage industrial growth
Answer: b) To regulate prices and discourage harmful consumption
Which of the following products under Chapter 24 and Chapter 27 is subject to excise duty specifically due to its health-related impact?
- a) Cigars
- b) Coal
- c) Kerosene
- d) LPG
Answer: a) Cigars
The excise duty on petroleum products in India is primarily levied by:
- a) Ministry of Commerce and Industry
- b) Ministry of Petroleum and Natural Gas
- c) Ministry of Finance
- d) Central Excise Department
Answer: c) Ministry of Finance
The excise duty rates for mineral oils and tobacco products are largely designed to:
- a) Encourage consumption
- b) Promote environmental sustainability
- c) Raise revenue and discourage excessive use
- d) Promote exports of these products
Answer: c) Raise revenue and discourage excessive use
Which of the following products under Chapter 27 is specifically exempt from excise duties for export purposes?
- a) Coal
- b) Crude oil
- c) Petrol
- d) Both a and b
Answer: d) Both a and b

These MCQs are designed to cover a wide array of topics related to Chapter 24 (Tobacco) and Chapter 27 (Mineral Fuels, Mineral Oils) under the Central Excise Tariff Act, including excise duty structures, exemptions, and regulatory frameworks.

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