Excise implication for different mrp

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Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 I am a Manufacturer and My products are under excise, but not under MRP Based Excise. Can I have different MRPs for the same product? And what will be the Excise implication.

Arbind Aggarwal

Arbind Aggarwal (Expert)
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08 January 2016 Excise duty is not payable on MRP if the goods are not specified in Schedule-III? Different MRP is allowed for different class of buyers or for different States.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2016 Sir, I Think it is clear, but just to clarify further, my goods are cleared under 3301 HS Code. I send product in Retail Markets and want to have separate MRP for Airport and Mall Sales ( As the costs are higher), compared to regular retail sales.
Can you just comment on this. Once again thank you for your valuable advice. Is there any special care which we need to take.

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Querist : Anonymous

Querist : Anonymous (Querist)

ANIL JANGID

ANIL JANGID (Expert)
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09 January 2016 Answer is 'No'. When your products have not been specified under Section 4A of the Central Excise Act read with notification no.49/2008-CE(NT) dated 24.12.2008 as amended (latest amendment vide notification no.3/15-CE(NT) dated 1.3.2015), you cannot resort to MRP based valuation.Hence no question of different MRPs for the same product.

Valuation methods under Section 4 and 4 A are entirely different.If you opt for Section 4 A instead of Section 4 on your own, there is every likelihood of short payment of duty. There is separate penalty for short payment and separate penalty for adopting Section 4 A instead of Section 4 of the Central Excise Act.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2016 Sir, I did not understand... I am not opting for section 4A. All I am saying is that I am selling products which are not under MRP based valuation, hence can I keep different MRP for same product - based on customer class ( eg Airport vis a vis normal kirana shop), will the Excise guys create problem because Excise clearance rate will be the same. I have to give more margins in Airport and mall to cover costs hence I want to set a higher MRP.