MRP VALUATION RULE

[SHIVKUMAR SHARMA]

Dear Experts

One of my friend mfg.textile binders(Textile chemical) packed in small plastic bottle of 30 ML and 80 ML mentioning MRP of ₹ 18 and ₹ 38 respectively and the same is removed from the factory and Prepared the Excise Invoice @ ₹ 297 Per Kg..The Product is covered under central excise tariff sub heading No.39069030.

Pls. Give your expert opinion whether this type of transaction is covered under MRP valuation rule.

Presently we are clearing the goods on transaction value that is correct. Pls.give your opinion.

[Mehul Pandya]

If Rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 exempts the provisions of the rules as regards marking prices etc. and if it is found that the provisions of 1977 Rules will not apply in respect of the packages in question then MRP will not apply.

AI Summary

MRP valuation rule may not apply where Packaged Commodities Rules exempt price marking, affecting excise valuation.
Applicability of MRP valuation hinges on whether the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 apply to the small packaged textile chemical bottles; if those Rules do not apply or an exemption from price marking applies, MRP valuation will not operate and transaction value per kg is appropriate for excise invoicing.