Doubts in excise

Hi All, Please help me with my doubts.Caclubindia is the only way to solve my doubts sad.Kindly help me friends.

Q1)How do we value under setion 4A of Central Excise Act, when different retail prices are declared on different packages for the sale of an excisable good in packaged form in different areas? For Eg: MRP on a packet of bread is as follows: Within Mumbai and Virar- Rs17 and Outside Mumbai-Rs20. Which MRP will be taken for valuation purose?

 

Q2) If a product is capable of selling loosely,which section for valation will apply provided the other conditions for section 4A is met? Section 4 or Section 4A?

Q3)This is related to SSI exemption under excise.

     Total T/o of Z& Co is 600 Lakhs. It Includes:

     (i)T/O of goods manufactured & removed vide notification 84   Rs75 Lacs

     (ii)T/O of goods to Srilanka                                                               Rs125Lacs

     (iii)T/O of Non -Excisable goods                                                      Rs125Lacs

If in the P.Y Z&Co's T/O was more than 400 Lacs,Then how much is the liability in the C.Y?

Is It 600-325=275 *12.36% OR 600 *12.36% ?

 

Kindly reply friends.

Thanks and Regards

Annmary

 

Replies (7)

Ans: 1

          If Two Price print on Packet then maximum price taken.so,

          Exice pay on Price of Rs. 20/- (Inclusive of Tax)on all packet. even if you collect Rs. 17/- in mumbai.

 

Ans. 2

          If product in loose form then MRP not applicable so transaction value of section 4 will applicable.

1) for the first query- individual rate for sale in particular area will be taken. Means, for the sale in mumbai 17 Rs will be taken. And for sale outside, 20 Rs will be taken. 2) For second query- Although the product is capable of being sold loosely, but if it is sold in bulk pack, then always sec 4 will apply. Means the ultimate sale will be seen.
Mr nitin, please update your knowledge. I dont agree with you.

@ Pankaj Thanks Pankaj. I had two more doubts which is posted at this link /forum/excise-valuation-rules-235867.asp .Please help me with those.

 

Mr Pankajji, MRP 20/- Rs. taken for Excise. Check before Post.....

https://www.indiastudychannel.com/resources/157255-Points-be-considered-Valuation-excise-per-MRP.aspx 

Hi Friends,

I am sorry because I guess in my fist question I mixed up two points.

First Point: When different retail prices are declared on DIFFERENT PACKAGES. Example: Packet A-In Mumbai and Virar Rs17 ;Packet B- Outside Mumbai-Rs20.

In this case as Mr.Pankaj said "individual rate for sale in particular area will be taken. Means, for the sale in mumbai 17 Rs will be taken. And for sale outside, 20 Rs will be taken .

Second Point: When 2 different prices are declared on SAME PACKET.Example : Packet A - In mumbai and virar Rs17 ,Outside Mumbai-Rs20.

In this case as Mr.Nitin said "Exice pay on Price of Rs. 20/- (Inclusive of Tax)on all packet. even if you collect Rs. 17/- in mumbai." will be taken.

Am I Right Friends?

Yes. correct friends .....

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