Excise duty

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we are a manufacturer of juices  and our tariff code is 22029020, and  duty is at concessional rate @ 2% and  our coverage came in effective only from April 2012. We are billing at cases rate  and duty collected accordingly. But, the excise officials, during recent audit, says that, the ED has to be calculate on litres  and not on cases basis. Please clarify, which is correct, as we  couldn`t find proper answer thro the manual, in tariff.

V.P.Chandra Sekar

208/134,Sitthumariamman koil street, Old Sooramangalam, Salem 636 005

Mobile: 9944461683

Replies (1)

Though the law requires that  Unit of Quantity should be in Litres but CBEC Board has issued an Instruction/circular  that mentioning of desired Unit of Quantity should not be insisted upon. Further you are also entitled for abatement provided under section 4A while arriving at the assesssable value for the purpose of payment of excise duty. As a trade pracice you can continue the existing system adopted by you.

 

Raksh*t Verma Advocate

09810525780

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