Total dutiable valuation

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Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2013 If there is mixed business of manufacturing, trading and export, how is the valuation of dutiable goods made? Suppose I manufacture goods worth 1 crore, out of which 50 lakh worth goods are sold in domestic market and remaining in export market. I also buy goods worth 50 lakh from other manufacturers/ dealers and without converting its shape or form sell as it is in a different packing goods worth 20 lakh in domestic market and 30 lakh in export market. The invoice raised combines both types of goods - manufactured and bought-out. How can I work out the value of dutiable goods under excise law and whether I should apply for registration or not. And what are the rules applicable in this case?

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)

21 March 2013 EXCISE IS APPLICABLE ON MANUFACTURING OF THE GOODS NOT ON TRADING OF GOODS (AS IT IS) WHETHER IT MAY BE FOR DOMESTIC OR MAY BE FOR EXPORT. IF A MANUFACTURE AVAIL THE BENEFIT OF VALUE BASED S.S.I. EXEMPTION SCHEME, THEY DO NOT NEED TO PAY EXCISE DUTY UP TO THE LIMIT OF 1.50 CRORE, AS PER NOTI. NO. 8/2003-CE DTD. 01.03.03.

FOR CALCULTAING THIS FIGURE, FOLLOWING CLEARANCES WILL NOT BE COUNTED, AS PER YOUR QUERY:-
1. EXPORT OF MANUFACTURED GOODS.
2. EXPORT OF TRADING GOODS.
3. DOMESTIC SALE OF TRADING GOODS (WITHOUT CHANGING ITS PRIMARY FORM OR PACKING).

YOU SHOULD GIVE A PROGRESSIVE VALUE ON YOUR INVOICE TO AVOID ANY MIS-HAPPENING. THAT WILL ALERT YOU EVERY TIME AND EVEN AFTER EACH CONSIGNMENT AND INVOICE.

THANKS.
PL. CLICK ON "THANKS USER", IF YOU ARE SATISFIED WITH MY REPLY.
RAJEEV KUMAR GARG
CONSULTANT

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Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2013 Thanks for your reply. I have one more doubt. If the total turnover of SSI unit say increases to 2 crores which includes one crore of export sale of manufactured goods and fifty lakhs of domestic sale of manufactured goods and remaining 50 lakhs of trading of goods, should the unit get it registered with Excise department as the total value of sale of manufactured goods both for export and in domestic market is 1.5 crores or should the unit get it registered only when the value of sale of manufactured goods in domestic market is 1.5 crores? Thanks for your guidance.

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)

21 March 2013 REGISTRATION IS REQUIRED, AS SOON AS YOUR SALE OF MANUFACTURED GOODS IN DOMESTIC MARKET ONLY CROSS THE LIMIT OF RS. 1.50 CRORE.
THANKS.
R.K. GARG.
CONSULTANT.

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