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

Clarification on Valuation Method for Excisable Goods Transfers and Depot Storage Rules under Rule 7, Valuation Rules 2000. A discussion on the transfer of excisable goods from a manufacturing plant to an excise-registered depot raised two main questions: the valuation method for such transfers and whether a depot can store both excisable and non-excisable goods. The responses clarified that valuation should follow Rule 7 of the Valuation Rules, 2000, based on the rate at which similar goods are cleared from the depot. Provisional assessment may be necessary. It was also suggested to refer to the CBEC Central Excise Manual and the Manual of Supplementary Instructions for further guidance on transaction value and valuation rules.