Provisional clearance of cigarettes at lower prices - Regarding - Central Excise - 16/87

Provisional clearance of cigarettes at lower prices - Regarding Circular No. 16/87 Dated 27-2-1987 [From F. No. 204/20/86-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Provisional clearance of cigarettes at lower prices - Regarding. In some Collectorates clearance of cigarettes are being permitted provisionally under rule 9B at lower prices declared by assessees. The provisional assessment is being done on account of the fact that show cause notice against the cigarette companies regarding under valuation of cigarettes on the basis of substantial evidence are pending. It is, not clear as to why provisional clearances are being permitted at lower prices declared by the cigarette companies and not at higher prices as indicated in the relevant show cause notices. Rule 9B does not require that the prices declared by the assessee has to be necessarily accepted for provisional assessment. Under this rule the proper officer is empowered to fix prices higher than those declared, while ordering provisional assessment. When duty has been demanded on strong evidence at prices higher than declared by assessees in the show cause notice, provisional duty should have been collected at higher prices only. The Board is, therefore, of the view that immediate review of provisional assessments should be taken and duty be provisionally collected at higher prices.