Excise duty - free of cost goods

[Asked by Guest]

WHETHER FREE OF COST ISSUE EXCISABLE GOODS ATTRACTS EXCISE DUTY?

[Surender Gupta]

Cost of FOC material used in the manufactring of excisable goods should be included in the value for the pupose of valuation and payment of excise duty.

AI Summary

Valuation of excisable goods: free-of-cost inputs must be included in assessable value for excise duty.
Cost of materials supplied free of cost used in the manufacture of excisable goods must be included in the assessable value for valuation and payment of excise duty, because free-of-cost inputs that form part of the manufacturing process are treated as value added to the finished excisable goods.