clarifying certain points relating to the Central Excise Valuation - Central Excise - TN 14/2005

clarifying certain points relating to the Central Excise Valuation Trade Notice 14/2005 - CE Attention of the Trade is invited to Board's Circular No. 643/34/2002-CX issued vide F.No. 6/39/2000-CX.1 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 given below. These clarifications supercede the clarification given in above referred circular. Sl.No. Old Sl.No. Point of Doubt Clarification 1. 13 How will valuation of samples be made 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, 1944or under rule 3 (4) of the Cenvat Credit Rules, 2001or 2002? In such situations, the provisions of Rule 3(5) of Cenvat Credit Rules, 2004 would apply. 3. All trade associations are requested to give wide publicity to the contents of this Trade Notice amongst their members /constituents. 4. Hindi version will follow. (RAJENDRA PRAKASH) COMMISSIONER Authority: Circular No. 813/10/2005-CX Dated 25.4.2005.