When we have cleared the goods as removal as such, the duty amount has to be adjusted equal to the input credit taken for the purchase of that goods and the balance amount has to be adjusted either RG23A or has to be paid under PLA.
When the goods are cleared as such the duty amount should not be less than the amount which we have taken as ITC for that goods. Even if we made the basic price as low as purchase and duty amount should be equal or higher than the ITC for that goods.
In that senario, We paid the duty for the goods cleared as such, as equal to the ITC taken. But the range supdt has objection that, you have to pay duty for the basic value of the bill.
for example
Basic price 102 duty 14.50 ------ 116.50 + local taxes
We purchase the goods for Rs.100/- and paid duty of Rs.14.50/-. So we have paid the duty amount of 14.50 as what we have taken ITC for that goods.
Please clarify whether we are in correct and if not, please give the suggestion for that issue.
26 October 2015
On the manufacturing product you need to pay excise duty on the assessable value of the goods. If you have to cleared the traded goods as such on higher price then also you need to reverse the same duty no need to pay excise duty on assessable value of the goods.
CAclubindia
