About discount in Central Excise ?
This query is : Resolved
Sudhakar Reddy T
(Querist)
10 December 2009
Hi,
We have sold some excisable products to some body, then after selling the products the concern party refuses to pay the total amount, so, after some bargainings we used to give 50% discount in total value of the invoice. So, is it possible to reduce the duty on the deducted amount or not ? Please tell us the entire proceedure for discounts in Excisable products.
We have sold some excisable products to some body, then after selling the products the concern party refuses to pay the total amount, so, after some bargainings we used to give 50% discount in total value of the invoice. So, is it possible to reduce the duty on the deducted amount or not ? Please tell us the entire proceedure for discounts in Excisable products.
SANJAY JAIN
(Expert)
10 December 2009
Assuming the query pertains to the manufacturer Assessee who is statutorily required to pay duty at the time of removal of goods from the place of manufacture for sale or otherwise.
In Central excise provisions, the goods is assessed for duty at the time of removal from factory and the Assessee is required to pay duty by the 5th of next month on the prevailing sale value. In case once duty in such manner is paid then any subsequent reduction in sale price, no doubt entails the Assessee to claim refund but this refund claim is gone through unjust enrichment and availment of CENVAT credit by purchaser and if claim fails on these aspect, no refund is allowed under Section 11B of the Central Excise Act,1944.
In Central excise provisions, the goods is assessed for duty at the time of removal from factory and the Assessee is required to pay duty by the 5th of next month on the prevailing sale value. In case once duty in such manner is paid then any subsequent reduction in sale price, no doubt entails the Assessee to claim refund but this refund claim is gone through unjust enrichment and availment of CENVAT credit by purchaser and if claim fails on these aspect, no refund is allowed under Section 11B of the Central Excise Act,1944.
Maninder Jain
(Expert)
11 December 2009
The Quarry is well replied by Sanjay Jain
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