XYZ Pvt. Ltd. is a manufacturer of car metal components. The parts of the car metal components are manufactured through using of a special type of “Dye”. During the year 2007-08, invoice raised against the customer for one component in the following prescribed format.

Material 50000.00
Labour charges 45000.00
Power and fuel 15000.00
Tool (Dye) depreciation 5000.00
Over hands 5000.00
Total costs 120000.00
Add: excise duty @8% 9600.00
129600.00
Add: VAT @4% 5184.00
Invoice value 134784.00

During the year 2008-09, there was a mutual agreement between the one of the customer and XYZ Ltd. was, the “Dye” being supplied by the customer to XYZ ltd, and it request not to charge depreciation. Accordingly, the XYZ Ltd. revise the invoice in the following format for a customer from 1\4\2008-31\3\09

Material cost 50000.00
Labour charges 45000.00
Power & fuel 15000.00
Over heads 5000.00
Total costs 115000.00
Add: excise duty @8% 9200.00
124200.00
Add: VAT @4% 4968.00
Invoice value 129168.00

Since there was a lower collection of excise duty during the year 2008-09, the excise officer came to know the agreement between the customer and XYZ Ltd about supply of “Dye” and consequent cost reduction (& excise duty collection).
On1/4/2009 the Central Excise Officer issued a ‘Show Cause’ Notice and stating that since the “Dye” was supplied by customer, add a Tool Amortisation cost on a reasonable estimated basis and arrive a assessable value for excise duty purpose and pay excise duty on that.

For example:

Material 50000.00
Labour 45000.00
Power & fuel 15000.00
Over heads 5000.00
115000.00
(+)Tool amortisation cost 5000.00
Assessable value 120000.00
(+) Excise duty @ 8% 9600.00
129600.00
(-)Amort. cost 5000
124600.00
(+) VAT @ 4% 4984.00
Invoice value 129584.00

Based on the above Notice, there was a huge demand from Excise Department to pay Excise duty for the year 2008-09.

As an Indirect consultant Advice on the above issue.

My sister concern import some machines at free of cost by paying full custom duty and frieght charges on it. Now they want to sell to us after some modifications on it. We are only trader not manufacturer. but they want to charge excise duty from us on the value which we are supposed to sell to our customer. Kindly clarify whether they should charged excise duty on whole price or on only modification charges paid by them

Can anyone tellme how to get refund of cenvat credit. At present what we do is file for the rebate claim on material exports made onpayment of duty.

But the cenvat credit lying inbooks are very prolonged period is there any other way out to get the refund for the unutilised cenvat credit.

Regards

Girish Mani

friends provide me solution on this:
excise duty paid on raw materials for which modvat credit has availed, wheather excise duty paid on which credit has not been availed should be included in valuation of inventories or not.

Dear all

could anyone let me know that

is there any difference between

exempted goods from excise duty

and

nil rate of excise duty

Thanks& rgds

RK Saini

HELLO EVERYONE

ONE OF OUR CLIENT IS PROPRIETOR OF 2 FACTORIES WHCIH MANUFACTURES EXCISABLE GOODS.

BOTH THE FACTORY COMES UNDER SAME JURISDICTION AND BUSINESS NAME FOR BOTH IS DIFFERENT BUT HE IS THE PROPRIETOR OF BOTH.

BOTH FACTORIES ARE REGISTERED UNDER MAVAT

COMBINED TURNOVER OF BOTH THE FACTORY IS LIKELY TO EXCESS THE SSI LIMIT

MY QUESTION

I ADVISED MIM TO MAKE HIS WIFE THE PROPRIETOR OF ONE FACTORY AND IN THIS WAY REGN COULD BE AVOIDED.

IS THIS THE PROPER WAY

we are despatching our plastic scrap @nil rate of duty under notification 10/2006 dt. 01.0.2006

our product iv cannula(90183930)is dutiable @ 4% under notification 10/2006 amended by 58/2008

my query is that
have we to reverse the cenvat credit to excise duty as we are despatching scrap @ nill rate of duty
as for the exempted goods we are not liable to take the cenvat credit

pls advice

Thanks & rgds

RK Saini

when should excise is must applicable in a manufacturing company

Can anybody please provide the latest excel format of RG 23 A Part I & Part II.

Also pleasae provide the procedure of transfer of goods from Branch in one state to HO in another state and the excise duty impact on the same.

my raw material is for rs. 100.00
my processing charges is rs. 3.00

raw material is exempted goods that means i have not paid any excise on raw material.

the goods i processed is excisable.

now situation is that my output is such that i can not fix its selling price more than rs. 105.00

than what is the liability of excise duty?