Will Royalty & Stowing Excise Duty (S.E.D.) form part of Transaction Value for the purpose of payment of Central Excise Duty? Royalty (@ 14% of the basic value of Coal ) on Coal is payable to the state Govt. for the mining rights given to the company & S.E.D. (@ Rs 10 per ton) is paid to the Coal Comptroller set up under the Ministry of Coal.
Please suggest whether the above mentioned statutory liabilities form part of transaction value for the purpose of payment of Central Excise Duty.
Royalty and Stowing Excise Duty on Coal Included in Transaction Value for Central Excise Duty Calculation A query was raised regarding whether royalty and stowing excise duty (S.E.D.) on coal should be included in the transaction value for calculating Central Excise Duty. Royalty is paid to the state government for mining rights, and S.E.D. is paid to the Coal Comptroller. The response indicated that since the cost of raw materials inherently includes these charges, they should be considered part of the transaction value for excise duty purposes. (AI Summary)
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