Excise law

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CS Birendra Verma (Querist)
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29 May 2013 Please solve this problem:

A ltd sold goods to B Ltd for Rs 17000 which includes Excise duty of Rs. 10000.

i.e Rs. 7000 cost of Goods and Rs. 10000 Excise Duty.

How can it be possible....? Can Excise Duty be equal to or above the cost of manufacture the Goods?

If yes what will be the implecation in this situation ?

Please solve the problem.

-CS Birendra Kumar

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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03 June 2013 must be a clerical error. Could also be that the raw material became obsolete, but as it is removed as such the original duty has been reversed as required.

CS Birendra Verma

CS Birendra Verma (Querist)
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08 June 2013 Thanx a Lot, Sir