Back ward calculation for assessable value

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2011 Hi
I came across a back calculation for determine the assessable value, here it is

Tender price - 217391
Less Loading/unloading- 250
217141
Transportation- 0
Less Excise Duty on Raw Material 16587
200554
Less Vat@15% 0
200554
Less Excise@10.30 18728

Duty Payable on- 181826

What i am concerned about is why has he debited the amount Excise duty on raw material 16587...It is urgent , please Help

PUNEET GOYAL

PUNEET GOYAL (Expert)
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15 November 2011 As per CAS-4, while computing the cost of material consumed , CENVAT credit, credit for CVD, sales tax set off, VAT, Duty Drawback, sale of of scrap and other similar duties subsequently recovered or recoverable shall be deducted.

In the above case rs. 16587 is the duty paid on input and accordingly you can take CENVAT credit of the same. This is the reason why he has deducted the same.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2011 Sir ,
It is true that that he has paid duty on input and accordingly he can take CENVAT credit of the same, but he uses the same CENVAT (accumulated in his RG23 Pt II,) whilre clearing the duty, so in nutshell what he does is takes credit on input, uses that credit for duty payment while clearing as well, but he never adds that credit amount while calculating dutiable value....

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PUNEET GOYAL

PUNEET GOYAL (Expert)
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19 November 2011 He is doing right.If we have taken input credit then definitely we will utilize the same at the time of payment of duty.