Regarding Excise Diff. Duty on Branch Sales

[Asked by Guest]

Dear Experts,

pls. advice about Excise Diff. Duty working on branch sales as per notification received w.e.f. 1/3/15.

i.e. we have supplied Excisable goods to our branch after paid duty (Excise.120+ Edu. 2.4+ H.Edu.1.2) total ₹ 123.6/- (12% + 2% +1%) on 1/2/15 then after final sale cleared on 10/3/15 from our branch ₹ 125/- (Basic Excise 12.5% ) Basic duty paid so how should we calculate diff. duty in month of mar-15 .

should i pay duty diff. of ₹ 5/- or ₹ 1.4/-

pls. suggest .

regards,

Manan Pandya

Ahmedabad.

[MUKUND THAKKAR]

Sir,

Diff. duty paid on ₹ 5/- with the applicable interest. 2% and 1% is not part of excise duty which following under cess.

[SR AGRAWAL]

Dear Mr. Pandya,

It appears that the clearances of goods were made on 01.02.2015 i.e. prior to Budget 2015 on payment of appropriate duty. No differential duty is payable due to change in rate of duty on pre-budget stock.

However, the duty payable on the date of clearances was to be calculated on the value of such goods prevailing at Depot.

Further, if you have charged excess duty from your buyer, the differential would be liable to be paid under Section 11D of the Central Excise Act, 1944.

regards,

S R AGRAWAL.

[Samik Chaudhuri]

Dear Mr.Pandya

Your clearances were made before budget so no need to pay differential duty but if the value of goods is higher than the first clearance than you have to pay differential duty only .5% more.

With thanks

Samik Chaudhuri.

AI Summary

Differential excise duty may be payable on branch sales when post-clearance rates or values increase, with cesses excluded.
Differential duty is payable where final branch sale occurs after a duty rate increase, limited to the increment in basic duty; education cesses are excluded from the basic duty calculation. Clearances prior to a rate change are not automatically liable for additional duty due solely to the later increase, but duty must be computed on depot value at clearance. If the branch realizes a higher value or excess duty was collected, the manufacturer must remit the shortfall or recover the excess, with interest applying to any differential remittance.