TaxTMI 
TaxTMI 
MRP Based valuation in Central Excise – Quantity Discount
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....RP Based valuation in Central Excise – Quantity Discount <br>News and Press Release<br>Dated:- 19-8-2007<br><BR>For the purpose of valuation of finished goods under Central Excise on which MRP is re....
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....quired to fixed and attracting the provision of Section 4A of the Central Excise Act, a question was arisen that: "Whether quantity discount is allowed and no excise duty shall be charged on goods su....
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....pplied as quantity discount". Honorable Tribunal in the matter of M/s INDICA LABORATORIES PVT. LTD. Versus COMMISSIONER OF C. EX., AHMEDABAD reported in 2007 -TMI - 1511 - CESTAT, AHMEDABAD has held ....
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....that, (a) Sale is not a necessary condition for charging to excise duty. Duty becomes payable (unless otherwise exempted) in respect of every removal of excisable goods. (b) The concept of quantity ....
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....discount applicable in the context of valuation under Section 4 is not applicable in determining value under Section 4A for the forgoing reasons. (c) In the present case, the sale is for the gross qu....
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....antity at the net price and the claimed free supply is not meant for the ultimate customer; such quantity claimed to be given also carried MRP. Therefore, duty shall be discharged on the entire quanti....
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....ty including goods covered as "the quantity discount" on the basis of valued arrived at under Section 4A after giving the abatement provided for. (Also see: article on MRP based valuation)<BR> News -....
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.... Press release - PIB....