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Differential excise duty on stock transfer

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Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2012 We have a manufacturing unit. This unit transfers goods to branch by way of stock transfer after paying excise duty.When goods are transferred at that time sale price of goods at branch is Rs 40000 per MT. Manufacturing unit paid duty @12.36% on Rs 40000 but branch actually sold these goods at the rate of Rs 45000 per MT. Is there any liability to pay differential duty.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

25 December 2012 No differential duty shall be levied since the price was incresed after the goods were despatched to the branch.
Further, if the price is increased then the increased rate would be applicable for the goods which are being despatched from the factory at that point of time.
So, effectively there is no short duty paid...
The price at which goods are sold ultimately may change either side.it may increase or decrease.

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