FREE GIFT WITH EXCISE PRODUCTS

[DEEPAK SHARMA]

One of my client manufacturing A & B, they want to promote their goods hence they introduce C goods as free with A & B in combo pack which is not manufactuire by then and it procured from area based exempted unit or exempted unit in other area (Excise not involved in C), 

is it possible to us if we pack A & B in one pack with new MRP also caontained 'C' as free gift 

Explanation: - Here A & B having independent MRP, we pack A with C or B with C sometimes A & B with C ('C' is free gift) and selling in open market, is any objection of excise dept. as excise duty under sec 4 or 4A not not charging on 'C'

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

Whether you have got clarified in this issue? If not please inform.

[DEEPAK SHARMA]

No Sir Please clarify

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

I shall check it and revert to you.

AI Summary

Excise duty on free gifts: whether a gift from an exempt unit attracts duty when bundled and sold with dutiable products. Manufacturer bundles dutiable products A and B with a free gift C procured from an exempt unit and sells combined packs with revised MRP listing C as free. The central legal question is whether excise authorities can treat C as dutiable or adjust assessable value when C is included in a manufacturer's packaged sale despite C having been procured from an exempt supplier.