Excisable goods transfer

[yateen vyas]

Sir,

I am sending manufacturer goods from our manufacturer plant to Excise registered depot now i have 2 question

1. What will be valuation for this type of transfer ? from plant to depot (price will be same for other or contact price)

2. can my registered depot put both type of goods suchj as Non- Excisable and Excisable goods in his Excise registerd depot.

Rgds

YAteen vyas

[Himansu Sekhar]

The valuation will be as per rule 7 of valuation rules,2000. It is immaterial when the goods sent by you are sold from depot. The value of cleasrasnce from the fasctorty will be determined at the rate at which similar goods are cleared from the depot on the same date. If from the depot there are several clearances, the rate of the invoice wherre the highest quantity is despatched will be considered for valuation purposes. This is a post clearance exercise. Therefore provisional assessment is done on such cases.

[Himansu Sekhar]

Please see the details at para 3.2 of the cbec central excise manual.

[KASTURI SETHI]

In terms of Chapter-3 Part-III Valuation Para No.2 Transaction Value ( Manual of Supplementary Instructions, 2005 as amended), Transaction Value at the depot is applicable for charging Central Excise duty. Pl. go through all clauses of Para No. 2 titled as Transaction Value.

[KASTURI SETHI]

If a manufacturer is unable to determine price under Section. 4 of the Central Excise Act, then that person is to resort to Valuation Rules.

AI Summary

Valuation for excisable goods transfer: depot transaction value and valuation rules determine excise duty and assessment procedures.
Valuation for transfers from manufacturer to an excise registered depot is determined by the depot transaction value and applicable valuation rules; similar goods cleared from the depot on the same date set the rate, with the invoice rate for the clearance having the highest quantity used where multiple clearances exist, and valuation is subject to post clearance review and provisional assessment, with fallback to prescribed valuation mechanisms when primary statutory valuation cannot be determined.