Branch transfer

[S.C. WADHWA]

Dear Expert,

We are manufacturers of food products and paying duty on one product at MRP less abatement @Rs.1.30
and transfer the same item to our Delhi Depot @ 0.55 paise per piece. Where as from Delhi the said item is
being sold at 0.59 paise to small retailers and @0.54 to big buyers.
Now my query is whether selling of higher rate than transfer in our case is objectionable to any deptt. Please
give your expert opinion.
Regards,
WADHWA

AI Summary

Retail price alteration may trigger differential excise duty when post-transfer sales exceed the price adopted at clearance.
If the retail price declared on packaging at clearance is increased after clearance, the altered retail sale price is deemed the retail sale price for excise valuation; consequently, transfers to a depot at a lower price followed by sales from the depot at a higher price than the price adopted at clearance can attract differential excise duty, though an alternative practical position notes that if the declared MRP is unchanged, valuation may depend on the declared MRP rather than actual transfer price.