Industrial/Institutional sales, Central Excise

[RAJ KUMAR RAJKUMAR]

 Sir,

i am working for the cement Company. We have different Excise Structure Trade /Non trade. for Trade Parties. Mrp rate is appicable. ex rate 12%+ADV Rs.120/- P/Mt.

For Non trade Parties Excise duty on Transaction value is applicable. Here there is no  specfic duty will be appilicable.No. Rs.120/- Advalerm

Recently i have observed that our Marketing office is sending the material to some of the parties with the excise rate of Non trade.12% on transaction value.

for showing a party Trade /non trade what are points need to be observed. and its excise Notification No.

Have we to collect any declaration or certification from the party that they are insitution/Industrial

How to identify a party industrial/ Institutional/Mere trader.

Kindly gude me in this.

Regards,

Posts / Replies

[Pradeep Khatri]

While issuing Sale Order or receiving Purchase Orders to/from your potential customers, you may ask them, what would be the usage of Cement for them, whether Institutional or Re-Selling.  As there is no requirment to mention the MRP on the goods intended for the institutional purpose under Legal Meterology Act, therefore, by discussing or by obtaining the Undertaking you may get rid off, this requirement to mention MRP on the Institutional packagings.