Dear Sir,
We have an export contract on CIF UK Port basis. While making excise invoice, we have shown excise duty on CIF value. Now the excise department raised objection and asked us to charge duty on FOB value. Since there is no bifercation of CIF value, how can we arrive the FOB Value? OR is there any option to charge Duty on CIF value. We charge duty on export goods and apply for rebate. Your kind suggestion / advice shall be appreciated.
With regards
Asa Dev
9528533773
[email protected]
Dispute Over Excise Duty Calculation: CIF vs. FOB Value for Export Goods; Factory Gate Price Suggested for Rebate. A query was raised regarding the calculation of excise duty on export goods under a CIF UK Port contract. The excise department objected to charging duty on the CIF value and insisted on using the FOB value. Respondents advised that excise duty should be calculated on the FOB value, which can be derived by subtracting freight and insurance from the CIF value. It was noted that the FOB value is not the ideal basis; instead, the factory gate price should be used for rebate calculations. The excess duty paid on CIF value can be adjusted in the CENVAT credit account. (AI Summary)
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