Rule 8 of 2000

[MUNIRAJ SRINIVASAN]

my Client has sold the products to sister concern @ 100 % but Central excise Audit Parties are told to pay 10% for not following Rule 8 of (Determination of Price Excisable Goods ) Rule 2000 if he can availe abatement of MRP @35% if any case law is there ?

Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be one hundred and ten per cent of the cost of production or manufacture of such goods.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.

AI Summary

Client Challenges 10% Payment Demand Under Rule 8 for Sister Concern Sales, Seeks 35% MRP Abatement Clarification A client sold products to a sister concern at 100% of the cost, but Central Excise auditors required a 10% payment for not adhering to Rule 8 of the Determination of Price Excisable Goods Rule 2000. This rule mandates that if excisable goods are used by the assessee or on their behalf in manufacturing other articles, the value should be 110% of the production cost. The client inquired about the possibility of availing a 35% MRP abatement and sought any relevant case law. The reply asked if the issue was clarified or required further information.