Regarding Excise Diff. Duty on Branch Sales

[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

Advice on Excise Duty Calculation for Branch Sales Post-March 2015 Notification; Section 11D Central Excise Act Applies A forum participant sought advice on calculating differential excise duty for branch sales following a notification effective from March 1, 2015. They had initially paid a total duty of 123.6 on goods supplied to their branch, which were later sold for 125 with a basic excise duty of 12.5%. Respondents advised that no differential duty is required for goods cleared before the budget changes, but if excess duty was charged to buyers, it must be paid under Section 11D of the Central Excise Act, 1944. One suggested paying the difference on 5 with interest, while another mentioned paying only a 0.5% difference if the goods' value increased.