Dear Friends, fellow practitioners and Seniour membersl,
For this company it is not mandatory to file the cOst Certificate before the Excise authorities.
Company removes certain products to its sister concerns for their consumption.
Cost of production of such products changes every year.
Company is bound to pay excise duty @ 110% of the cost of production. under section 4 and Rule 8 and 9 of CE ACt and Rules.
Cost of production of the previous year ending 31st March is determined or finalized only after 31st March every year. and subsiquently the cost certificate is issued in the month of June or July every year prescribing the new rate of cost of production.
Say: New rate on the bases of previous year figures is Rs 100 and the same is intimated through certificate to Department. also the compnay starts paying at new rate from the date of certificate.
Now dept is raising question and demanding duty at this rate from April to June . Company paid duty during April to 30th may @ old rates prevailing in the previous year.
Who is correct COMPANY or Department?
Any provision as to the above system?
Please advice
Regards
CAclubindia
