Abetment if the concentional duty is paid

[Guest]

One of my client who is selling products like Chicken Cocktail Sausages, Chicken Frankfurters, Cocktail Sausages, Frankfurters, Goa Pork Sausages, under tariff head 16010000,16041310 etc., are charging 2% duty without availing CANVAT credit. However, they take abetment of 35% and charge 2% on only 65% of MRP. Is this is right? Pls email your opinion to [email protected]

[B. Naga Rami Reddy]

Sir,

Payment of duty at 2% after availing abatement of 35% is ok as per Sl.No.110 of the MRP Notification No.49/2008-CE(Nt) as amended.

AI Summary

Abatement on MRP permits charging duty on reduced taxable value under the MRP notification rather than full retail price. The response confirms that treating taxable value as 65% of MRP by availing the 35% abatement and paying duty on that reduced value is permissible under Sl.No.110 of the MRP Notification No.49/2008-CE(Nt), as amended, allowing duty computation on MRP net of the prescribed abatement even where CENVAT credit is not claimed.