advice regarding notification

[Anil Jangid]

WE ARE MANUFACTURING SAUCE UNDER TARIFF NO.210390390 & TAKING ABATEMENT 35% AS PER NOTIFICATION NO.11/2011 & CHARGE EXCISE DUTY 2% AS PER NOTIFICATION NO.1/2011.

BUT WE ARE PUZZLING BECAUSE NOTIFICATION NO.11/2011,ALSO MENTIONED 35% ABATEMENT ON SAUCE. YOU ARE REQUESTED TO GUIDE WHY WE ARE NOT ABLE FOR TAKING BOTH ABATEMENT & CHARGING CONCESSIONAL DUTY 2%.
 

[CSSANJAY MALHOTRA]

Dear Anil,

Benefits under both the Notifications are available.

Both the notifications are different in the manner that 11/2011-CE (NT) provides for abatement% from the MRP for the purpose of Valuation i.e. arriving at Assessable Value for levy of Excise Duty, whereas Notification No. 01/2011 CE provides for Duty Rate on exempted goods without availing the CENVAT facility.

11/2011-CE (NT) : Meant for Valuation of Goods for levy of Excise.

01/2011- CE : prescribes the Excise Duty Rate % to be charged with condition of non-availment of CENVAT.

 

 

[Anil Jangid]

Dear sir,

Can we take notification of the both the notification abatement and concessional rate of duty.

[CSSANJAY MALHOTRA]

Dear Anil,

Yes.

Also please note that the Notification No, 1/2011-CE prescribes duty rate on Exempted goods.

AI Summary

Abatement and concessional excise duty: valuation abatement and concessional rate can be applied concurrently subject to CENVAT non availment.
Notification No.11/2011-CE (NT) provides an abatement from MRP for valuation to determine assessable value, while Notification No.1/2011-CE prescribes a concessional duty rate for specified exempted goods conditional on non availment of CENVAT. The abatement reduces assessable value and the concessional rate applies to that value; both benefits can be applied concurrently provided the CENVAT non availment condition is met.