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%.
 

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.