Manufacturer's depot

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 Factory tfrs goods to its Depot at Rs. 100 and pays Excise duty accordingly and Depot Sells the same goods at 125.
Q. Can the Depot only pass on the duty it has collected i.e. on Rs 100. Or Can it pass on the duty on entire 125 to the end customer and the differential duty which it has collected, over & above Rs. 100, can be deposited by the factory.
Thank you for the prompt reply but have not got my query resolved. the product which we sell is assessed at Transaction Value only. So please give your valuable inputs accordingly.

Arun Biyani

Arun Biyani (Expert)
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08 October 2013 Excise duty is payable on assessable value and not on sales price..you will have to see cenvat rules for the same..

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2013 The product which we manufacture is assessed at Transaction value only and which in my query is Rs 100 for factory and Rs. 125 for Depot. So please give your valuable inputs accordingly.

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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09 October 2013 Goods should be cleared from the factory of Rs. 125/-. If manufacturer has paid the duty on value of Rs. 100/- then dealer can pass the credit on duty paid my manufacturer i.e. Rs. 100/-.