Abatement on biscuit and chocolate products
This query is : Resolved
11 November 2011
Hi,
We are producing the sweet biscuit and chocolate products, the products are come to under section 4A (MRP base abatement)
But we are not making the calculation of excise duty under section 4A,(MRP base abatement), we directly pay the excise duty on transaction value, and excise duty value is more than excise calcu. of abatement.
However excise department is saying that you have to make calculation of under section 4A, (MRP base Abatement ),
Actually we are having more than 400 products and it is difficult to calculation of all these in our excise software, so as we decided that pay the duty on transaction value,
Is there any clarification from department if somebody doesn’t want to take the abatement is like.
OR
Can you please suggest on the matter,
We are producing the sweet biscuit and chocolate products, the products are come to under section 4A (MRP base abatement)
But we are not making the calculation of excise duty under section 4A,(MRP base abatement), we directly pay the excise duty on transaction value, and excise duty value is more than excise calcu. of abatement.
However excise department is saying that you have to make calculation of under section 4A, (MRP base Abatement ),
Actually we are having more than 400 products and it is difficult to calculation of all these in our excise software, so as we decided that pay the duty on transaction value,
Is there any clarification from department if somebody doesn’t want to take the abatement is like.
OR
Can you please suggest on the matter,
Pradeep Jain
(Expert)
12 November 2011
There is no provision in Central Excise to pay duty on transaction value when the MRP based valuation is applicable on your product.
Message likes :
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Tapas Ruparelia
(Expert)
12 November 2011
Department action is correct. No such provision is there to have an alternate valuation. MRP basis valuation is compulsory!
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