Directors Penalized for Misvaluing Goods; Excise Duty Misapplied to Buyer's Value Addition Contrary to Rule 6.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Imposition of personal penalty on two Directors - valuation of goods - In any event, excise is a levy on manufacture and it is found that it is not the case of the revenue that the buyer is the manufacturer of the said final products, so as to justify levy of excise duty on the value addition in the hands of the buyer. Rule 6 of the Valuation Rules only provides for inclusion of money value of the additional consideration flowing directly or indirectly from the buyer to the manufacturer and does not authorize recovery of excise duty with reference to the buyer’s selling price. - AT....