Assesable Value for Duty purpos.

[HIMANSHU JARIWALA]

Sir,

We are manufacturing Monofillament yarn which is excisable. Erlier we sell goods without adding value of cops. because cops are returnable. Now we decided to sale monofilament yarn with cops.

So, can we issue seperate commercial invoice for cops without excise and excise invoice for monofilament yarn.

Please advice on the issue. or any other option to save excise duty.

[YAGAY andSUN]

Dear Himanshu,

As per excise laws, you would had to add the amortised value of cops in the Monofillament yarn when you were selling monofillament yarn and the COPS were returnable.

Now, if COPS are also being manufactured by you, then, you would have to pay the Central Excise Duty by raising a separate invoice or mentioning the description, qty, and value of the goods along with the monofillament yarn.

Further, if these are bought out items and you have availed the CENVAT credit then on removal as such you have to reverse the equivalent CENVAT credit.

Regards,

Pradeep Khatri

 

AI Summary

Assessable value must include packaging amortisation; separate invoicing or disclosure required and CENVAT credit reversal applies. Where returnable packaging forms part of the transaction, the amortised value of that packaging must be included in the assessable value of excisable monofilament yarn. If packaging is manufactured and removed separately, duty must be discharged by separate invoicing or explicit invoiced disclosure; bought-out packaging on which CENVAT credit was availed requires reversal of the equivalent CENVAT credit on removal as such.