excise for diffrence mrp.

[Anil Jangid]

I am a Manufacturer and My products are under excise, but not under MRP Based Excise. Can I have different MRPs for the same product? And what will be the Excise implication.

[KASTURI SETHI]

Answer is 'No'. When your products have not been specified under Section 4A of the Central Excise Act read with notification no.49/2008-CE(NT) dated 24.12.2008 as amended (latest amendment vide notification no.3/15-CE(NT) dated 1.3.2015), you cannot resort to MRP based valuation.Hence no question of different MRPs for the same product.

Valuation methods under Section 4 and 4 A are entirely different.If you opt for Section 4 A instead of Section 4 on your own, there is every likelihood of short payment of duty. There is separate penalty for short payment and separate penalty for adopting Section 4 A instead of Section 4 of the Central Excise Act.

[Mahir S]

Anil ji,

Yes, you can have two different MRPs for the same product.

For Corporate sales, there can be a lesser MRP and for Retail Sales there can be higher MRP.

Further, a Company can have two different MRP for the same product in different states.

[Ganeshan Kalyani]

Yes I have observed in case of cold drinks there is different MRP for sale in Malls and cinemas and different MRP for sale in retail market.

AI Summary

MRP-based valuation cannot be used unless statutory notification permits it; unauthorised MRP use risks duty shortfall and penalties.
Where a product is not specified for MRP-based valuation under Section 4A and the relevant notification, a manufacturer cannot treat MRP as the basis for excise valuation and cannot lawfully adopt different MRPs for excise purposes; opting for MRP valuation in such circumstances creates a likelihood of short payment of duty and attracts separate penalties for adopting Section 4A in place of Section 4.