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Excise on depot transferre

manish kumar (C.A) (99 Points)

08 March 2014

i have manufaturing excisabe unit in gurgaon and non exciseable depot in delhi. i am making stock transferred at Rs 100 and showing excise duty payable in gurgaon as Rs 12.36. Now in delhi depot i am making sale of Rs 112.36 in sale invoice and showing direct expenses as rs 12.36 in delhi depot books. please suggest weather central excise will have objection that my assessable value in depot had increased and can they demand duty on increased sale value i.e 12.36

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Prashant Kini (Article Assistant) (154 Points)
Replied 08 March 2014

As per Rule 7 of Central Excise Determination of Value Rules, in case of a depot transfer normal transaction value prevalent at depot at the time of transfer will be taken as assessable value and accordingly duty will be paid on the said value. Where at a later date the goods is sold at a higher price then excise duty is to be paid on difference amount.

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