Q-1) Suppose goods are removed from factory on 01.10.2008 at a price of Rs. 100. Rate of Excise duty at the time of removal was 14.42%. Now say on 01.01.2009 the company got a price revision from the customer with retrospective effect. The new price was Rs. 150. So the company will get price difference of Rs. 50 for the sale done on 01.10.2008. On 01.01.2009 when the invoice will be made for price difference, the rate of duty applicable was 10.3%. Now at what rate the excise will be levied on Rs. 50 (Price Difference). Will it be 14.42% which was applicable at the time of removal or 10.3% applicable at the time of issuing the price differential invoice?
Q-2) In case there is a downward price revision and if the goods are not covered u/s 4A of the Central Excise Act 1944, than can we claim the refund of the excise duty paid on higher price?
CAclubindia
