I would like to know
Central excise act
Payal K (CA FINAL) (188 Points)
10 February 2010Payal K (CA FINAL) (188 Points)
10 February 2010I would like to know
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 11 February 2010
Whereever Rule 9 of Central Excise Valuation Rules are applied, the value of goods is Rs. 40 (the rate at which related person sells the good to unrelated persons). Sale to unrelated person at Rs. 15 is irrelevant for the purpose of Rule 9.
Say for example an assessee sells 99% of the manufactured goods to related person at 30, and 1% to unrelated persons for Rs. 15; will it be prudent to take value at Rs. 15.
Excess is required to be retunrned. However excess duty is not required to be retunred, as he can take credit (receivable for him) or can take refund as he has borne the burden of duty.