Clearance to industrial consumers from depots

[Asked by Guest]

Dear Sir,

Please explain us regarding the following, we want to clear mrp based products to industrial consumers from our depot registered under excise. So in this case we will first do stock transfer to our depot and then from there it will be sold to industrial consumer.So for doing stock transfer what valuation is to be taken whether mrp based valuation as per section 4(a) or valuation under section 4 i.e. transaction value. Please explian.thanks and regards.

AI Summary

Transaction value determination: use depot sale price at or nearest to removal date for stock transfers to depot.
Valuation for excisable goods transferred to a depot for onward sale equals the price at which such goods are sold from the depot on the date of clearance; if no sale occurs on that date, use the nearest date price. This applies where the assessee and buyer are unrelated and price is the sole consideration, under rule 7 of the Central Excise Valuation Rules.