XYZ Ltd. is a SSI Unit as per Excise Act. XYZ Ltd. are normally sale his product @ Rs. 100 per Kgs. in the market upto the turnover of Rs. 150 lakhs. On 15/03/2011 his turnover of sale is exceeded Rs. 150 lakhs and his sale is liable to excise duty @ 10.3%. On 15/03/2011 to 31/03/2011 he sale his product @ Rs. 90.50 per Kgs. and collect excise duty of Rs. 9.32 per Kgs. (Rs. 90.50 X 10.30%). i.e. total collection from customer Rs. 99.82 per Kgs.
My question is Excise duty calculated by the company is correct or not? For this purposes what is transaction value - Rs. 100 per Kgs or Rs. 90.50 per Kgs.?
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