Dear Experts,
Item A having net MRP after abatement 65 /- But transferred to depot @₹70/-. but duty paid on ₹65/-..Secondly the said item A without MRP transferred to depot for further sale to institutional buyer @₹60/- per bottle and accordingly duty paid at ₹60/-.
Now my query is that excise authorities are asking us to produce institutional certificates. In case we could not get the same then what will be happened. please advise.
Regards,
WADHWA
Excise Duty Issue: Higher Price Transfers to Depot Without MRP May Require Institutional Certificates or Face Penalties. A query was raised regarding the excise duty on Item A, which is transferred to a depot at a price higher than its MRP after abatement and sold to institutional buyers without an MRP. The excise authorities are requesting institutional certificates, and the concern is about the consequences if these certificates cannot be provided. Responses indicate that the company may need to pay differential duty with interest and penalty if the certificates are not furnished. However, under the Legal Metrology Act, MRP is not required for sales to institutional buyers, and the buyer's details on invoices should suffice for verification. (AI Summary)
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