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.

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.