Namkin & patato Chips

[Ravindra Kindre]

Dear Sir

W e will plan our existing business expansion (Namkin & patato chips). We got order large volume.& plan excise registration.

Please let me know the Excise chapter & basic excise duty rate.

[KASTURI SETHI]

Sh.Ravindra Kindre Ji,

These products fall under Chapter/Sub-Heading No. 2106 90 99 of Central Excise Tariff Act, 1985. These are covered under MRP 35% abatement admissible Rate 12.5%

[Rajagopalan Ranganathan]

Sir,

As per Note 6 of Chapter 21 of first schedule of Central Excise Tariff Act, 1985 namkin and potato chips are classifiable under sub heading No. 2106 90 90 attracting cenvat duty @ 12.5% adv.

[Ravindra Kindre]

Dear Sir

Sir After Excise registration we dont taken any cenvat credit.so as per my knowldege it is 2% excise duty rate liable for sale.It is correct.? Please guide us.

[Ravindra Kindre]

Respected Sir

Following are our item item it is veriable excise duty rate ?

No	Product Name
1	Mega Chips- Salted
2	Mega Chips - Tomato
3	Mega Chips - Masala
4	Mega Chips - Cream N Onion
5	Namkin Mega - Fanta Stick Tomato
6	Namkin Mega - Fanta Stick Masala
7	Powerbreak - Pudina(B)
8	Namkin Mega - Sev murmura
9	Frums - Funny Wheels (Bag)
10	Fryums - Moon Masala
11	Namkin Mega - Chinese Noodles
12	Namkin Mega - ABCD/-
13	Namkin -Moong Ka Dum
14	Namkin Mega - Farali
15	Namkin Mega - Sheng Bhujia
16	Namkin-Chana Chatpata
17	Namkin-Crispy Bhujiya
18	Namkin- Swad Lasuni
19	Mega Chips - Salted
20	Mega Chips- Tomato
21	Mega Chips - Cream N Onion
22	Powerbreak - Tomato(B)
23	Power Break- Hot N Chilly(B)
24	Mega Chips - Salted
25	Mega chips - Tomato
26	Mega Chip -Cream N Onion

[Ravindra Kindre]

Respected Sir

As per my privious quirey of our mfg item list please let me know Excise CSH no.It is only 2106 90 99 or different CSH no.& what is abatement %.

Please guide us.

Thank you.

[Ravindra Kindre]

Respected Sir

Thank you for your guideline

[KASTURI SETHI]

DEAR SH.RAVINDRA KINDRE JI,

In this context, it is pertinent to see notification no.3/2006-CE dated 1.3.2006 which stands superseded vide Notification No.12/12-CE dated 17.3.12 which will clear your doubts about classification and rate of duty. I think proper heading is 2106 90 99. I could not find 2106.90.90 in Central Excise Tariff/Customs Tariff.

[Ravindra Kindre]

Respected Sir

Thank you for your immdiate reply.but please guide me me at the time of sale excise duty payable @ 2% (when we will not taken cenvat credit).

Thank you sir

[KASTURI SETHI]

Dear Sh.Kindre Ji,

Yes. There is no doubt that Chapter/Sub-heading No.2106 90 99 is covered (at S.No.22) under Notification No.1/11-CE dated 1.3.11 as amended vide Notification No. 16/12-CE dated 17.3.12. for the purpose of payment of Central Excise duty @2% Adv.Pl. go through all the relevant notifications mentioned in my replies.

[Ravindra Kindre]

Respected Sir

I am really very thanking to you to guide me.Sir also request you please guide us vat rate due to veriable item. Presently we have paid vat @ 5.5% to all items.

Sir Wating for your reply.

[KASTURI SETHI]

Sir, For VAT query we have many experts on this forum. This is not my field.

[Ravindra Kindre]

Respected Sir

These all product are covered under MRP 35% abatement admissible Rate 12.5%.But my question is when we will not taken cenvat credit & pay excise duty @ 2%.in that case. Can we will allowed pay excise duty 2% after abatement value 35%.(i.e.65% Duty Payable Value).please guide us.

[chetan rachhadiya]

Dear Ravindraji,

potato chips will fall under chapter 20052000 as per judgement of frito lays, except this all item will fall under chapter 2106.

while availing concessional rate noti.no.01/2011 you can't take cenvat credit & discharge duty @ 2%. but if you want to avail cenvat credit duty rate is 6%.

your product covered under MRP based valuation & abatement is 35%.

Please confirm you will sale this item under your brand name or using the brand name of other's. if you are using other's brand name you can not take benefit of SSI exemption.

Please feel free to contact me if you require more detail on this as i have recently handle this type of case.

you will find my no.from my profile.

[KASTURI SETHI]

Sh. chetan rachhadiya Ji,

Can you give me citation of case law, namely, Frito Lays ?

Thanks & regards.

K.L.SETHI

[chetan rachhadiya]

Dear Sethi sir,

potato chips in retail packs are classifiable under tariff head of 20052000 as per case of "pepsico india holding pvt.ltd V/s commissioner- 2015 (9) TMI 982 - CESTAT NEW DELHI = 2016 (331)  ELT 119 (TRI-DELHI)

 

[KASTURI SETHI]

Sh. Chetan Rachhadiya Ji,

Thanks a lot for updating all of us. This is the best use of this forum. Any well conversant visitor (of this forum) throughout India can help by sharing his information and knowledge.

With regards.

K.L.SETHI

[Ravindra Kindre]

Respected Sir,

Presently we have paid M Vat @ 5.5% to all following item at the time of sale, but I think the following item Sr.No.09 & 10 it is not liable for vat @ 5.5% at the time of sale.Because of when we purchase raw material for those item we was not paid any vat to our supplier (He is not shown his bill).Please guide us.

Waiting for your reply.

Regards

Ravindra Kindre

9922431665

No	Product Name
1	Mega Chips- Salted
2	Mega Chips - Tomato
3	Mega Chips - Masala
4	Mega Chips - Cream N Onion
5	Namkin Mega - Fanta Stick Tomato
6	Namkin Mega - Fanta Stick Masala
7	Powerbreak - Pudina(B)
8	Namkin Mega - Sev murmura
9	Frums - Funny Wheels (Bag)
10	Fryums - Moon Masala
11	Namkin Mega - Chinese Noodles
12	Namkin Mega - ABCD/-
13	Namkin -Moong Ka Dum
14	Namkin Mega - Farali
15	Namkin Mega - Sheng Bhujia
16	Namkin-Chana Chatpata
17	Namkin-Crispy Bhujiya
18	Namkin- Swad Lasuni

AI Summary

Concessional excise duty without cenvat credit: lower ad valorem rate available and MRP valuation raises classification issues. Most items are treated under Tariff heading 2106 90 99 with MRP valuation admitting a 35% abatement and an ad valorem duty at the general rate of 12.5%. A concessional notification permits a reduced ad valorem duty when the manufacturer elects not to take CENVAT credit, subject to notification conditions; if CENVAT credit is taken a higher duty rate applies. Retail potato chips may instead fall under Chapter 2005 by tribunal authority, affecting classification and applicable duty.