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Charging excise@12.5% on billing from depot

EXICSE (Legacy) 362 views 3 replies
Dear Sir, we have a Stock & Sales Point in Mumbai where as Plant is in Bhiwadi (Raj). we have been doing Stock transfer at Maximum Qty Sold rate during Month or take reference of prevailing/Billing price at or around transfer date . My query is if we bill higher than transfer rate but pass excise based on our transfer price , can excise deptt. raise question on Loss of Revenue as it will be a recurring exercise (even if Qty is less than 50% of total supply). kindly guide ,what should be the ideal practice & procedure for long term & substantial sales planning. with best regards B KJHA
Replies (3)

Dear sir,

You are adopting Rule 7 of CE Vauation rules for arriving the duty liability on Removal.

Whereby you are adopting the price at which the greatest aggregate qty sold based at the Sale point for discharging the Duty liability.

The final sales price will not impact the valuation done above. This will normally accepted by the Dept.

 

 

 

 

 

Depot Trasfer Valuation Under Rule 7- Value the goods at the time of removal ( from factory) at the price prevalent at Depot at thta time.

If you sell below the transfer price- no refund- if you sell above the transfer price- no additional duty.

Dept. cannot demand duty on the diffrential price. 

Dear Sir

thank you for reply. In current scenario ,we can only pass excise on pro rata basis ie on stock transfer price. Can we have arrangement where we can charge excise on billing price at depot at prevailing rate as normal billing Practice.

regards

B k jha


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