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

Classification of adhesive products determines whether MRP-based excise valuation applies after abatement or transaction value.
Classification determines whether the product is an acrylic polymer in primary form (supporting the manufacturer's tariff heading and invoicing on transaction value) or a prepared adhesive (shifting classification to the adhesive heading and attracting MRP-based excise valuation with an abatement). Technical composition, function/use and market channeling are the operative criteria; preserve technical evidence, seek any departmental change in writing, and consider labelling for industrial use as a factual indicator when defending the chosen classification.