Invoice price assessment for Small Scale Units in respect of stock transfers - Instructions reg. - Central Excise - 86/88

Invoice price assessment for Small Scale Units in respect of stock transfers - Instructions reg. Circular No. 86/88 Dated 27-12-1988 [From F. No. 202/47/88-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Invoice price assessment for Small Scale Units in respect of stock transfers - Instructions reg. Doubts have been raised by some Collectors as to whether invoice price assessment under rule 173C(11) can be extended to SSI units even in respect of stock transfers. 2. The matter has been examined by the Board. Rule 173C(11) requires the assessees "to declare the price of goods transacted .............". Therefore rule 173C(11) applies only in respect of cases where firm prices are known before clearance of goods. However, the Ministry's intention has all along been to extend procedural concessions to units in the small scale sector so long as duty is correctly paid by them. In view of this consideration, it has been decided by the Board that even in case of stock transfers, facility under rule 173C(11) can be extended to SSI units and duty can be paid in such cases on the basis of provisional prices shown in the invoices/proforma invoices at the time of transfer of goods by the SSI Units to Depots etc. However, the assessments will have to be kept provisional until the final invoices are received. Such SSI units would therefore be required to execute a bond as per rule 9B of the Central Excise Rules, 1944, pending finalisation of their assessment. [This disposes of Collector of Central Excise, Bangalore's reference C.No. IV/16/172/88 Tariff Unit dated 22-11-88]