Differential of Excise duty, Central Excise

[RAM SHARMA]

Dear Experts,

We are registered manufacturer in central excise. We are sold our product through our Depot/Consignment agent. Suppose we have removed our product at the rate of 10 percent excise duty from the factory in fy 2011-12. Now from March 2012 the rate of excise duty is at the rate of 12 percent . What will be the excise duty rate applicable for our consignment agent/Depot. Whether differential duty will be applicable on the factory after the effective rate of change. Pl advice.

Thanks

Posts / Replies

[Rajesh Nathoo]

Dear Mr. sharma ,

Point of taxation in Central excise is removal from factory . Rate of duty applicable would be when goods are removed from the factory . Depo sale is not an exception to this. Depo value is relevant only for valuation purposes.  So rate of duty applicable in this case will be 10 percent . . There is no need to pay the differential duty in this case .