Manufacturer's depot excise

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2011 Dear Sir,
We have a manufacturing plant in maharashtra and depots in all over india.All our depots are registered with excise as"Manufacturer's Depots". Now we are transferring excisable material from plant to our depots and depots are selling that material to our customer and just pass on the excise what we charged at plant level. For e.g. suppose we transferred material @ 100/- to our depot with excise of Rs.14.42 on that, further our depot is selling that material @ Rs.125/-. for additional Rs.25/- we are paying differential duty. This is what we are following, now my query is if our depots is selling material @ Rs.125/- can my depots charges excise on Rs.125/- ? Can customer get cenvat on Rs.125/- ? What is the excise procedure to pay additional duty collected from our customers ? Any Special registration required with excise for Depots to do above things. ? Which return I need to file for my depots ?

Sorry sir, lots of questions i am asking at one time...

Waiting for your expert reply...

Thanks in advance...

Rajesh S Patankar,

PUNEET GOYAL

PUNEET GOYAL (Expert)
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10 October 2011 1.
IN ABOVE CASE MANUFACTURING PLANT WILL VALUE EXCISABLE GOODS AS PER RULE 7 OF CENTRAL EXCISE VALUATION (DPEG) RULES 2000 (I.E. AT THE PRICE AT WHICH GOODS ARE REMOVED FROM DEPOT ON THE DATE ON WHICH GOODS ARE REMOVED FROM MANUFACTURING PLANT TO DEPOT.)

BUT PRICE SHOULD BE PRICE AT WHICH LARGEST QTY OF IDENTICAL GOODS SOLD FROM DEPOT ON THE ABOVE SAID DATE.

2.
AND DEPOT WILL ISSUE THE DEALER'S INVOICE FOR PASSING CENVAT CREDIT TO THE CUSTOMER AND ACCORDINGLY CUSTOMER MAY CLAIM THE CENVAT CREDIT ON THE BASIS OF DEALER'S INVOICE.

3.
IF THE VALUATION IS TO BE DONE AT RS 125/- BY MANUFACTURING PLANT AS PER RULE 7 ABOVE THEN THERE IS NO QUESTION OF PAYMENT OF ADDITIONAL DUTY. AND IF THERE IS DIFFERENCE IN PRICES CHARGED BY MANUFACTURING PLANT AND DEPOT THEN YOU HAVE TO DEPOSIT THE ADDITIONAL DUTY ALONGWITH INTEREST, IF ANY.