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

 [email protected]

 

AI Summary

Manufacturer liability to pay excise duty: must discharge differential duty at factory and pass benefit via supplementary invoice.
Manufacturers are required to deposit differential excise duty at the factory gate based on depot sale prices; depots/branches with dealer registrations are not normally permitted to pay the differential duty themselves. Where depot prices give rise to valuation differences, the manufacturer must pay the differential duty (including on finalisation of provisional assessment) and may pass the benefit or reflect the duty to customers by issuing a supplementary invoice under the procedural rules.