Central Excise - Assessable value - Determination of - When additional consideration is received by the manufacturers - Case of M/s. I.T.C. Ltd. - vis-a-vis - D.G.I.'s order, dated 10-4-1986 - Regarding - Central Excise - 10/88-CX.1

Central Excise - Assessable value - Determination of - When additional consideration is received by the manufacturers - Case of M/s. I.T.C. Ltd. - vis-a-vis - D.G.I.'s order, dated 10-4-1986 - Regarding Circular No. 10/88-CX.1 Dated 21-3-1988 [From F. No. 15C / 33/86-CX.1] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Central Excise - Assessable value - Determination of - When additional consideration is received by the manufacturers - Case of M/s. I.T.C. Ltd. - vis-a-vis - D.G.I.'s order, dated 10-4-1986 - Regarding. In continuation of Board's Circular letter No. 15C/33/86-CX.1 (Pt), dated 8-3-1988 on the subject, I am directed to say that in respect of cases where price is not the sole consideration for sale of excisable goods, a doubt has been raised regarding the determination of the assessable value, whether the money value of the additional consideration received by the assessee from the buyers should be added to price declared by the assessee and the assessable value re-determined or it should be added straight to the assessable value already declared/approved. 2. The Ministry of Law were consulted in the matter who have opined that the money value of the additional consideration has to be added to the assessable value already declared/approved in such cases. A copy of the advice given by the Law Ministry is enclosed for guidance and necessary action. Some clarification has been subsequently sought from the Law Ministry in respect of their opinion and the Law Ministry have in turn referred the matter to the Attorney General of India for his learned opinion which is awaited. 3. Pending receipt of the Attorney General's opinion, the Board desires that assessable value should be determined on the basis of the Law Ministry's aforesaid advice and show cause notices/demands issued accordingly. 4. Also the Collectors of Central Excise having jurisdiction over the units of M/s. I.T.C. Ltd., may take necessary action in pursuance of D.G.I.'s order, dated 10-4-1986, in the light of Law Ministry's advice referred above and a report sent in due course to the Board. 5. Receipt of this cirular may please be acknowledged.