WHETHER PRODUCT COVER UNDER MRP

[SHIVKUMAR SHARMA]

Dear Experts

Please note that we are manufactring adhesives of acrylic co polymers packed in 30 ML & 80 ML for use in textile

Persently we are preparing invoice of transaction value not on MRP Based valuation.on bottle of 30 mL MRP mention ₹ 18/- & on 80 ML Mrp mention ₹ 38/-

We are giving the example of Invoicing as under :

100 Kg ( 3125 bottle of 30 ML).Acrylic co polymer @ 300 = 300000

Excise duty 12 5% = 3750

Chapter No.39069030

Now Our Excise Officer Is telling that your Product is falling Under chapter heading 35061000 and you have to pay duty on MRP base Value after taking abatement of 35% and prepared invoice as under:

100 Kg ( 3125 bottle of 30 ML).Acrylic co polymer:

3125Bottle *18 = 56250

Less : Abatement 35% 19688

Taxable value 36562

He telling that we have to pay excise duty on differential amount of 36562-30000 = 6562 *12,5 =820

Please give your expert legal opinion at the earliest possible.

Thanks with regards

SHIVKUMAR Sharma

AI Summary

Manufacturer Questions Taxation of Adhesives: MRP vs. Transaction Value; Considers Challenging Reclassification and Labeling for Industrial Use Only A manufacturer of acrylic co-polymer adhesives for textiles is seeking advice on whether their product should be taxed based on the Maximum Retail Price (MRP) or transaction value. The excise officer suggests reclassifying the product under a different tariff heading, which would require MRP-based valuation with a 35% abatement. Experts in the forum advise verifying the product classification based on its ingredients and usage, suggesting the manufacturer should challenge the reclassification if confident in their current classification. They also recommend labeling the product for industrial use only if it is not sold in the general market.