Notice for normal/extended period, Central Excise

[S.C. WADHWA]

We are manufacturer of goods falling under MRP basis but some times we cleared goods on transaction value without mentioning MRP by treating the buyer as consumer but later on we could not get consumer certificate from them and paid differential of duty for Dec.14 as scrutiny audit was done by superintendent. Now they have asked us to give them details of clearances made on transaction value from 1.3.11 to 30.11.14 and also from 1.1.15 to 30.4.15. Our excise audit was also conducted in the year 2014 for the period from 1.3.11 to 31.3.13 and found no discrepancies.

Now my query is whether they can ask details prior to normal period which is for 12/18 months. Please give your expert opinion.

Regards,

WADHWA

Posts / Replies

[MUKUND THAKKAR]

Sir,

some times we cleared goods on transaction value without mentioning MRP by treating the buyer as consumer. buyer as consumer but later on we could not get consumer certificate from them and paid differential of duty for Dec.14.

have you a purchase order of your customer? it is enough to prove that you are not selling your goods in open market.

MRP is applicable in case when you are not aware well in advance who is end user. but you cleared goods to your customer and cleared mention on pack that " FOR ........Purpose" or " FOR industrial Use" in such case transaction value is applicable.

once your audit is completed it d'nt means everything is in order. your refer your audit report is it clear mention "TEST CHECK" and mention particular months in report.second things can you mention separately in monthly returns MRP based clearance and Transaction value based clearance? if no than dept is may ask for pervious period also.

[S.C. WADHWA]

Dear Experts,

Thanks for early reply.

We are selling our goods more than 95% to our buyers after getting P.O. and only 5% sales are to be made without P.O. Our all products labels carrying MRP rates printed there on except to whom goods were sold on transaction value against there P.O. But not showing in excise returns separately sales against MRP and Transaction value.

Now my query is whether they can ask us to pay differential amt of duty between MRP less abatement and transaction value. Please give your expert opinion.

Regards,

WADHWA