Differential of Excise duty

[RAM SHARMA]

Dear Experts,

We are registered manufacturer in central excise. We are sold our product through our Depot/Consignment agent. Suppose we have removed our product at the rate of 10 percent excise duty from the factory in fy 2011-12. Now from March 2012 the rate of excise duty is at the rate of 12 percent . What will be the excise duty rate applicable for our consignment agent/Depot. Whether differential duty will be applicable on the factory after the effective rate of change. Pl advice.

Thanks

AI Summary

Excise Duty on Depot Sales: 10% Rate Applies if Goods Removed Before March 2012 Rate Hike to 12% A registered manufacturer in central excise inquired about the applicable excise duty rate when products are sold through a depot or consignment agent. The manufacturer removed products at a 10% excise duty rate in FY 2011-12, but the rate increased to 12% in March 2012. An expert clarified that the point of taxation is when goods are removed from the factory, meaning the applicable duty rate remains at 10%. Depot sales are relevant only for valuation, and no differential duty is required.