Excise - Valuation u/s 4 C. E Act

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Plz Guide

 

"A" is a manufacturer and clearing the goods under section 4 Central Excise Act I.e Duty based on Transactional Value.

Now he wants to remove the goods affixing MRP on it but does not want to come under perviw of Section 4A- Duty based on MRP.

Can "A" do so in any circumstance?

Regards

Jeevesh Mehta

 

Replies (7)
Originally posted by :Jeevesh
" Plz Guide
 
"A" is a manufacturer and clearing the goods under section 4 Central Excise Act I.e Duty based on Transactional Value.
Now he wants to remove the goods affixing MRP on it but does not want to come under perviw of Section 4A- Duty based on MRP.
Can "A" do so in any circumstance?
Regards
Jeevesh Mehta
 
"

Dear Jeevesh,
 

                               if there is no requirment of the declaration of the MRP on the pack under  Standards of Weights and Measures Act, 1976, the provisions of the section 4A of Central Excise Act, 1944 will not be applicable. for further clarification make mail to me sachinagarwalcallb @ gmail.com

 

Dear Mr. Jeevesh

Before answering, I would like to ask you what is the requirement to do so. Please creify the descripttion of product also.

Regards

Harendra Singh

 

Mr Jeevesh



Valuation u/s 4A (i.e., MRP based valuation)

Central govt may by the notification in Official Gazzete, specify any goods, in relation to which it is required to declare price of goods on package under Standards of Weights and Measures Act, 1976.

On such goods valuation will be done as precribed.

In your case, if your goods is notified and necessary to declare MRP value under SWMA Act, 1976 then  valuation of your goods will be done under Sec 4A of CEA, 1944 

Mere affixing of MRP, voluntarily and not under statutory obligation under Standards of Weight & Meausres Act and rule made thereunder (Packaged Comodity Rules) in this case; Section 4A will not be attracted and goods will be valued under Section 4 only.
Originally posted by :Rajesh Kumar
" Mere affixing of MRP, voluntarily and not under statutory obligation under Standards of Weight & Meausres Act and rule made thereunder (Packaged Comodity Rules) in this case; Section 4A will not be attracted and goods will be valued under Section 4 only. "


 

Dear Sachin and rajesh,

Than ks for the advise but do we have any statutory provision as to wat  u have advised... because the client is seeking authentic proof for the same

regards

Ask your client to read Section 4A of the Central Excise Act. If he wants to read more, give him a copy of CBEC Circular 411/44/98-CX dated 31.07.1998, Circular 737/53/2003-CX dated 19.08.2003. Copies of these circulars are available on CBEC web site, www.cbec.gov.in

As per section 4A, the section 4A is applicable only when the goods are covered under standard and weight measurement act . Otherwise, section 4 will be apllicable

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