any notication against supply to govt agencies on rate contract basis thru tender not appliacable MRP Procedure

[nandankumar roy]

Dear Sir,

we are procuring order through tender for supply of medicines to various govt supply body& ESIC where  contract  rate applicable only not on MRP Basis & we are doing the same since last 15 years. But recently excise audit team questioning why you are selling on rate contact instead of MRP and asking for any notification or guide from govt. Now what we should give reply regarding this query. Pl help.

AI Summary

Company's Bulk Medicine Sales to Government Agencies Exempt from MRP Valuation Under Rule 34 of Packed Commodities Rules A company has been supplying medicines to government agencies and ESIC under rate contracts for 15 years, bypassing the Maximum Retail Price (MRP) procedure. Recently, an excise audit questioned this practice, prompting the company to seek guidance. Three responses were provided. The first explains that MRP-based valuation applies to retail sales, not bulk sales to institutional buyers, which are exempt under the Legal Metrology Act, 2011. The second suggests checking for exemptions under the Legal Metrology Act, 2009. The third confirms that bulk sales under rate contracts are exempt from MRP valuation as per Rule 34 of the Packed Commodities Rules.