Respected Experts
We have cleared 500 kgs.goods @Rs.200/-(Including Transportation ) Per Kg from Our factory (Mfg.Unit) at Kanpur to our Depot at Panipat on stock Transfer basis after paying Excise duty of ₹ 12500/-(12.5%)& The same goods we have sold from our Depot as under.
250 [email protected]/- per kgs.Plus !2.5% Excise Duty.to customer A
[email protected]/-Per Kgs.Plus 12.5% Excise Duty.to Customer B
Please confirm whether we have to pay Differential duty at our Factory in case of goods supplied to Customer B.fro our Depot.
Excise Duty Clarification: Duty Based on Depot Price at Factory Removal, Not Sale Price; Place of Removal Crucial A query was raised regarding the payment of differential excise duty when goods are transferred from a factory to a depot and subsequently sold at different prices. An expert clarified that duty should be based on the price at the depot on the date of removal from the factory, not the sale price at the depot. Another expert highlighted that the place of removal, whether factory or depot, determines the assessable value. Various legal interpretations and Supreme Court judgments were discussed, emphasizing the importance of the place of removal and transaction value in determining excise duty obligations. (AI Summary)
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