TRANSACTION VALUE

[SUPRAKASH MITTRA]

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.

[sarjerao ghadge]

The raw material cost is inbuilt with Royalty and SED charges,so it would form part of transaction value.

AI Summary

Transaction value may include royalty and stowing excise duty, affecting central excise liability on goods. Royalty paid to the state for mining rights and stowing excise duty paid to the Coal Comptroller are components of raw material cost and therefore are included in the transaction value for the purpose of calculating central excise duty.