Computation of assessable value of finished product manufactured out of duty paid inputs on which proforma credit has been availed - Question regarding - Central Excise - 6/6/86-CX.1

Computation of assessable value of finished product manufactured out of duty paid inputs on which proforma credit has been availed - Question regarding F. No. 6/6/86-CX.1 Dated 6-3-1986 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Computation of assessable value of finished product manufactured out of duty paid inputs on which proforma credit has been availed - Question regarding I am directed to invite your attention to the Explanation inserted in sub-clause (ii) of clause (d) of sub-section (4) of Section 4 of the Central Excises and Salt Act, 1944. The Explanation stipulates the quantum of duty that should be deducted from the cum-duty price for arriving at the assessable value under Section 4. 2. It has been brought to the notice of the Board that the aforesaid Explanation is not being correctly interpreted by the field formations. It may be noted that what hás to be deducted from the cum-duty price is the duty specified under the First Schedule to the Central Excises and Salt Act, 1944 read with notifications issued under Rule 8, not being notifications giving credit of input duty. In this connection, I am to invite your attention to instructions contained in paragraphs 58.3 and 58.4 of Explanatory Notes contained in 1982 Budget instructions issued under Ministry's F. No. 334/1/82-TRU, dated 27-2-1982. It has been clarified therein that in arriving at the assessable value of the excisable goods, the actual amount of duty required to be paid on the goods under assessment shall be excluded from cum-duty price for purposes of sub-section 4(d)(ii) of Section 4. 3. You are requested to review all the assessments which are inconsistent with these instructions and take suitable remedial action thereon. A report on the action taken may be sent by the 31st March, 1986. 4. Receipt of this letter may please be acknowledged.