Sale of Ex Goods from Branch / Manuf Depot

[V K]

Dear Sir

We have a plant in vasai ( MH) , from plant we TRF the goods to our variuos Excise Registered Branches on duty paid TRF Invoices. When Branch sold the goods to customer, branch pass on the actual ED recived on TRf Invoices. Plant deposit the ED on rate Diff as per Branch Invoices. This is the normal procedure, what we are having. ( Prov Assess & then Actual Assesment by Manufacturer )

Now somebody adviced us that  ED on rate Diff can be paid by branch itself & passed on to the end customer. so that customer can claim the actual modavte ( ED deposited by Plant + ED on rate diff deposited by branch)

Pls give your valuable views on the following points.

1) If Plant deposited the ED on rate diff on the basis of Invoices raised by branches to end customer, then No body can claim the Benifit of ED deposited on  Rate Diff,( i.e we are paying more duty but can pass on the benifit for lesser duty. )

2) Can Branch Pass on the duty ( more than recived from Plant ) ,on Which goods are sold to end customer & pay the diff of ED passed on -- (less) Ed Received on Plant TRF Invoice)? how the entries will be posted in RG 23D Register.

3) How branch can deposit the ED on Rate Diff ( Branches are having only dealer Registration )??, if Yes , Pls give procedure /   Notification / Any case law for the same.

Sir , I know that the Q is very complecated / or may not clear from my example. your expert advice will be highly oblized 

VIKAS KAPOOR

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AI Summary

Manufacturer Must Pay Differential Excise Duty; Branches Cannot Pay on Rate Differences Per Experts' Clarification A company with a plant in Vasai transfers goods to excise-registered branches using duty-paid transfer invoices. When branches sell to customers, they pass on the excise duty (ED) received. The plant deposits ED on rate differences based on branch invoices. A suggestion was made that branches could pay ED on rate differences, allowing customers to claim full modvat. However, experts clarified that only manufacturers, not depots or dealers, can pay differential duty. The correct practice involves paying duty at the factory based on depot prices, with any differential duty settled by the manufacturer through supplementary invoices.