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'

AI Summary

Client Queries Excise Duty Implications on Combo Packs with Exempt Product C Under Sections 4 or 4A A client is manufacturing products A and B and wants to promote them by offering product C as a free gift in a combo pack. Product C is not manufactured by the client but is procured from an exempted unit, meaning excise duty is not involved for C. The query seeks clarification on whether there are any objections from the excise department when selling these combo packs with a new MRP, as excise duty under sections 4 or 4A is not charged on C. The discussion includes a request for further clarification on this issue.