TaxTMI 
TaxTMI 
Hi, I request to clarify the changes vide Notification 20/2014 dt. 11th July, 2014.
Notification 20/2014 dt.11-07-2014
21 Jul 2014 
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Central Excise valuation rules deem transaction value where goods sold below cost absent additional consideration, altering assessment approach.
The notification rescinds the prior effective-rate prescription and aligns the Clean Energy Cess with the tariff rate while expanding its uses to environmental initiatives and research. It also amends the Central Excise Valuation Rules to provide that where goods are sold below manufacturing cost plus profit and no additional consideration flows from the buyer or a third party, the value for duty assessment shall be deemed to be the transaction value. (AI Summary)
The notification rescinds the prior effective-rate prescription and aligns the Clean Energy Cess with the tariff rate while expanding its uses to environmental initiatives and research. It also amends the Central Excise Valuation Rules to provide that where goods are sold below manufacturing cost plus profit and no additional consideration flows from the buyer or a third party, the value for duty assessment shall be deemed to be the transaction value. (AI Summary)