Valuation of excise if different MRP's printed

[VAMSI KRISHNA]

Dear All,

Our Client engagged in manufacture of ice creams. HSN num 21050000.

They are producing finished goods in unit A and entire produced goods are transferred to warehouse by paying duty (Since date of remonal is taxable event in excise). While paying duty they are unaware that where it is going to be sold. They store goods in warehouse and based on orders they supply to different places in india. But every product bears two MRP's like 'if sold in Karnataka' and 'Rest of india'. They discharging duty based on MRP 'If sold in Karnataka'. the MRP of karnataka is always less than the MRP if sold rest of india.

As per the provisions of excise act When different retail sale prices are declared on different packages, each such retail price shall be the ‘retail sale price’ for purposes of valuation of excisable goods intended to be sold in area to which the retail price relates – [Explanation 2(c) to Section 4A(4)].

Now my question is what MRP they should consider for the purpose of valuation of excise ????

Kindly mentioned relevent case laws and judgements????

AI Summary

Retail sale price as MRP: when different MRPs are printed, each price governs valuation for its sales area.
Each declared retail price printed on packaging is the retail sale price for valuation of excisable goods intended to be sold in the area to which that price relates; separate MRPs on separate packages each govern valuation for those packages, and if two MRPs appear on a single package the higher printed price is treated as the applicable MRP.