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MRP Rule under Excise...!

Rajeev Nair (Finance Professional) (510 Points)

05 January 2009

I would like to have the specific details on MRP Rule under Central Excise... If there is any limit in terms of packing quantity..please mention....

If the manufacturing company is registered under excise and sells its products to various customers on different packing and prices...what is the applicable law... [ Packings : 10 Kgs - 25 Kgs ]

Is it allowed by excise to sell one product [ say - A ] on various prices to customers...charging duty thereon...

Thanks in advance

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5 Replies

CA. MUKESH KUMAR (CHARTERED ACCOUNTANT) (183 Points)
Replied 05 January 2009

Hi..............

Sir plz read section 3(2) of CENTRAL EXCISE ACT 1944 with CENTRAL EXCISE RULE2000

Rajeev Nair (Finance Professional) (510 Points)
Replied 05 January 2009

Dear Mr.Mukesh...Thanks for the reply i will check accordingly....

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 05 January 2009

Well Rajeev, Excise Law is not concerned with your packing. You can pack any quantity as per your commercial requirement, and excise law has nothing to do with it.

However, if your packing is a retail packing, i.e. to be sold to retail consumers as pre packaged commodity; you need to follow Standard of Weights & Measures Act and Rules made thereunder. Standard of Weights & measures (Packaged Commodities) Rules gives various requirements of pre packaged commodity intended for retail sales.

If you are covered under these rules, and a notification has been issued under Section 4A of the Central Excise Act, the valuation for the purposes of Central Excise duty will be done as per Section 4A of the Central Excise Act.

There is no prohibition under Excise Law to sell same product at different prices to different consumer or to same consumer at different time. Valuation will be done accordingly.

Rajeev Nair (Finance Professional) (510 Points)
Replied 06 January 2009

Thanks for your expert comments...Mr.Rajesh Kumar

SOMNATH (none) (57 Points)
Replied 23 October 2012

yes i do agree with rajeev sir...& if the manufacturer is charging different MRP from different consumer then for calculating the excise duty we have to take the highest value....