Excise duty chargeable

Dear All,

I am working ia a factory where electrical items like MCB, RCCBs are manufactured. I do billing in SAP.

While billing for the finished goods, excise duty is charged on ZMRP n not on MRP , i.e, in our case if MRP is Rs.100 excise duty is calculated on Rs.65 (100-35% of 100).

So can any one tell me why this excise duty is charged on ZMRP & not on MRP.

Waiting for your replies.

Regards,

Poornima Kamath