Clarification with regards to valuation of the goods, reg. - Central Excise - 813/10/2005

CIR NO.813/10/2005-CX, DT. 25/04/2005 Clarification with regards to valuation of the goods, reg. I am directed to refer to Board's letter No.6/39/2000-CX.I dated 1.7.2002 clarifying certain points relating to the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. 2. A number of references seeking further clarification on some of the points clarified in the Circular mentioned in para 1 above have been received in the Board. These points are being clarified in the table enclosed. These clarifications supercede the clarification given in above referred circular. 3. Trade Notices may be issued for the benefit of the Trade. F.No.6/18/2003-Cx.I Sd/- (Ashok Kumar) Under Secretary to the Govt. of India Sl.No Old Sl.No Point of Doubt Clarification 1. 13 How will valuation of samples be done which are distributed free, as part of marketing strategy, or as gifts or donations? In case of free samples, the value should be determined under Rule 4 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. 2 14 How will valuation be done when inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, under the erstwhile sub-rule (1C) of rule 57AB of the Central Excise Rules, 1944 or under rule 3 (4) of the Cenvat Credit Rules, 2001 or 2002? In such situations, the provisions of Rule 3(5) of Cenvat Credit Rules, 2004 would apply.