central excise mrp base tax invoice calculation

[DR. SURENDRA KUMAR]

Dear Sir,

We have registered with excise at delhi. Suppose I transferred material from delhi to Noida on the basis of form 38. Okay after that can I sale the same material Noida to Noida, Ghaziabad with excise invoice . Secondly suppose MRP of 500ml ₹ 35/- per bottles for sale of Saharanpur but we have invoice raise to party by ₹ 14/- per bottels including all. So how to calculate ₹ 35/- MRP. Pl suggest me and what is the minimum sale price of the product to design as per excise/vat act. For your information we have not registered with excise at Noida except vat.

[Surender Gupta]

You have not specified whether you are registered as manufacturer or as dealer at Delhi. Further from Noida unit are you supplying the goods after manufacturing or processing or it would be sale as dealer?

If you are eligible for MRP based duty, what is the rate of abatement and classification of goods, else name the goods.

[DR. SURENDRA KUMAR]

We have registered with excise at delh as manufaturer. Suppose I transferred material from delhi to Noida our corporate office after manufaturing of mango juice on the basis of form 38. Okay after that can I sale the same material Noida to Noida, Ghaziabad with excise invoice . Secondly suppose MRP of 500ml ₹ 35/- per bottles for sale of Saharanpur but we have invoice raise to party by ₹ 14/- per bottels including all. So how to calculate ₹ 35/- MRP. Pl suggest me and what is the minimum sale price of the product to design as per excise/vat act. For your information we have not registered with excise at Noida except vat. CHAPTER CODE 20098910, 35% ABATEMENT ON MANGO JUICE.

[Surender Gupta]

You are suppose to declare actual Retail price at the time of Remove of goods from your manufacturing premises be it for stock transfer to otherwise in case you are liable to pay MRP bases duty.

In case, you fail to provide the correct MRP at the goods, you need to go through the provisions of Rule 4 of the MRP based valuation Rules and Section 4A of the Central Excise Act to see the provisions and consequences.

[Surender Gupta]

Sub (4) of the Section 4A of the Central Excise States that:

where any goods specified under sub-section (1) are excisable goods and the manufacturer-

(a) remove such goods form the place of manufacture without declaring the retail sale price of such goods on the packages or declares a retail sale price which is not the retail sale price as required to be declared under the provisions of the Act, Rules or other law as referred to in sub-section (1) ; or

(b) tampers with, obliterates or alters the retail sale price declared on the packages of such goods after their removal from place of manufacture,

then, such goods shall be liable to confiscation and the retail sale price of such goods shall be ascertained in the prescribed manner and such price shall be deemed to be the retail sale price for the purposes of this section.

AI Summary

MRP-based valuation requires declaring retail sale price at removal; failure triggers prescribed valuation and confiscation risks. MRP-based valuation requires the manufacturer to declare the actual retail sale price at the time of removal, including for stock transfers; failure to declare correctly or altering the declared retail price leads to valuation under the prescribed MRP rules, the retail sale price being ascertained and deemed for excise purposes, and potential confiscation; an abatement applicable to the mango juice classification affects assessable value, and invoicing/registration requirements depend on whether the transfer is a manufacturer stock transfer or a dealer sale.