Excise Duty on Export goods

[Asa Dev]

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]

AI Summary

Excise duty on exports must be charged on FOB value, not CIF, with FOB derived by deducting freight and insurance.
Excise duty on exports is payable on the FOB (basic) value, not CIF; where only CIF is available, derive FOB by deducting freight and insurance (using actual amounts or reasonable approximations - freight subject to a commonly applied cap and insurance at a small percentage). Source FOB from sales documentation or compute it from CIF. Excess duty charged on CIF may be adjusted through cenvat credit or rebate procedures; rebate calculations should use the factory gate/basic valuation principle.