Sumeet (CA Final) (110 Points)
19 March 2012A Mfg. company(in Mumbai) is transfering goods to its depot in Bangalore a product @ Rs. 130 per kg and charges excise on the same. Now the depot sells goods to customer @ Rs. 132 per kg.
Whether the excise duty payable should be @ Rs. 130 or @ Rs. 132 ?
Devendra
(Chartered Accountant)
(4775 Points)
Replied 19 March 2012
As per Rule 7 of the Central Excise Rules, the Excise duty is to be paid on Rs. 132. ie. on basis of depot price prevailing at the time of removal of final product from the factory.
Note : It is assumd that the rate Rs. 132 prevails at the Depot at the time of removal of goods from factory.
Regards,
Devendra Kulkarni
Onkar
(Asstt. Audit Officer)
(36 Points)
Replied 31 March 2012
You shoud know the price prevailing at depot at that point of time or near of that point of time. If not so you have to pay the differential duty on differential amount.
Onkar
Arun Kumar Singh
(GST Advocate)
(15203 Points)
Replied 04 April 2012
When goods are sold through depot, there is no 'sale' at the time of removal from factory. in such cases, price prevailing at depot (but at the tie of removal from factory) shall be the basis of assessable value. The value should be 'normal transaction value' of such goods sold from the depot at the time of removal or at the nearest time of removal from factory (rule 7 of Vluation Rules).
Sunil Kumar G
(AGM Taxation)
(373 Points)
Replied 04 April 2012
As per Rule 7 of CENTRAL EXCISE VALUATION (DETERMINATION OF PRICE OF EXCISABLE GOODS) RULES, 2000, . "Where the excisable goods are not sold by the assessee at the time and place of removal but are transferred to a depot, premises of a consignment agent or any other place or premises (hereinafter referred to as “such other place”) from where the excisable goods are to be sold after their clearance from the place of removal and where the assessee and the buyer of the said goods are not related and the price is the sole consideration for the sale, the value shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of goods under assessment".
In this situation the MFG company should charge excise duty on Rs. 132
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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