Applicability of transaction value provision for paying duty on sale value

[S S KONAR]

We are in Engineering Manufacturing Sector. Our final products, which is Electrical Furnacs, is built uo using various rawmaterials and components. We also sells thease raw materials / components as spares from our manufacturing stores. Can we apply transaction value provision for paying duty on sale value insted of credit availed on such as such material. We need your opinion supported by case laws.

AI Summary

Engineering Firm Seeks Guidance on Duty Payment for Raw Materials; Advised to Reverse Cenvat Credit per Rules 2004 An engineering manufacturing company inquires about using transaction value provisions for paying duty on the sale of raw materials and components used in their electrical furnaces. They seek advice on whether this approach is preferable to reversing the Cenvat credit availed on these inputs. An expert advises adhering to the Cenvat Credit Rules, 2004, which require reversing the credit if inputs are removed as such. The expert warns against using transaction value for duty payment due to potential complications and suggests avoiding this method to prevent future issues. The company further questions if paying more duty than the input credit taken constitutes a rule violation.