MRP/CONSIGNMENT SALE

[S.C. WADHWA]

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

AI Summary

Non MRP sales to institutional buyers may require proof of buyer status or face duty differential, interest and penalties.
Clearance of packaged goods to institutional or industrial buyers is exempt from retail MRP requirements under the Legal Metrology (Packaged Commodities) Rules; invoices containing buyer name, address and registration can substantiate institutional status. Where goods are cleared from depots on non MRP prices, authorities may require proof of bona fide institutional purchases, and absent such proof the assessee may be liable for duty differentials with interest and penalties and face enquiry into diversion to the open market.