Valuation of goods

[Rajesh Kumar]

Respected experts ,

I have a issue that department intercepted a truck loaded with cigarettes which was without Invoice and E way bill.

Now, they are calculating duty and penalty on the basis of MRP of the products which is in actual triple times of actual sale price.

Please guide whether they are doing right by calculating on MRP basis ?

What is the actual and practical method as per GST provisions for this valuation?

AI Summary

Goods Transported Without Invoice: Department Justified in Using MRP for GST Valuation; Present Sale Price Evidence for Reassessment. A user raised a query regarding the valuation of goods under GST after a truck carrying cigarettes without an invoice or e-way bill was intercepted. The department calculated duty and penalty based on the Maximum Retail Price (MRP), which is significantly higher than the actual sale price. An expert responded that the department is justified in using the MRP for valuation since transporting goods without proper documentation suggests an intent to evade taxes. The expert advised convincing the department of the actual selling price with credible evidence, warning that this situation could lead to a broader investigation by multiple government agencies.