If stock is transferred from plant to Depot liable to excise duty then what will be the value of goods on which duty will be calculated?
Plant also sells directly the goods manufactured.
Will it be the transfer value to depot or the assessable value?
This transaction is governed by rule 7 of CE valuation (DPEG) Rules. Value would be the normal transaction value prevailing at the depot at or about the same time of removal from factory.
RULE 7. Where the excisable goods are not sold by the assessee at the time and place of removal but are transferred to a depot, premises of a consignment agent or any other place or premises (hereinafter referred to as “such other place”) from where the excisable goods are to be sold after their clearance from the place of removal and where the assessee and the buyer of the said goods are not related and the price is the sole consideration for the sale, the value shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of goods under assessment.
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