Vat on sales value but central excise on assessble value

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Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 vat on sales value but central excise on Assessble value why please explain with notification and case laws

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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17 October 2013 Central excise is leviable on manufacture and VAT is leviable on Sale of the product. Each State has prescribed a different meaning and explanation in the Act about Taxable Turnover. Excise is levied by Central Government and the Act is applicable throughout India, whereas sales tax/VAT is for a particular state.

Assessable value is based on two types one of advalorem (dealer price Section 4) and other one is MRP minus abatement Section 4A. The valuation method is different for excise and vat. There is no specific notification correlating excise and vat.