Removal of material under warranty period, Central Excise

[SURYAKANT MITHBAVKAR]

If we removed material to our customer who is having Machine under warranty period for maintaining smooth working of machine. (Additional material free of charge) whether excise duty is applicable.

Posts / Replies

[Himansu Sha]

Yes, the valuation will be 110% of the cost price, under rule 11 of the valuation rules,2000.

[KASTURI SETHI]

Yes. CE duty has to be paid. You may or may not charge for additional material. It is captive consumption. I support the views of Sh.Himansu Shaw, an expert.