Levy of excise duty on readymade garments on the basis of Retail Sale Price (RSP)

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..... assessed to duty on the basis of RSP or on the basis of transaction value. 2. As you are aware, the provisions of Section 4A do no apply to the readymade garments, as they have not been notified under that section. But under notification No. 20/2001-C.E. (N.T.) dated 30.4.2001, tariff value (at the rate of 60% of the retail sale price declared or required to be declared) was fixed on readymade ga .....

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..... n terms of Rule 1 (l) of the Standards of Weights Measures (Package Commodity) Rules, 1977, a 'pre-packaged commodity' means a commodity, which, without the purchaser being present, is placed in a package so that the quantity of goods contained therein, has a pre-determined value and such value cannot be altered without opening the package. Further, in terms of the said Rules, the term 'package' .....

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..... al excise valuation is not important, as such activities undertaken on duty paid goods are fully exempt vide notification No. 38/2003-CE dated 30.04.2003. Thus, it is clear that in such cases, the manufacturer of the garments is under no legal obligations to declare the retail sale price while clearing the garments from his factory in bulk and in unpacked condition. 5. The above instructions supe .....

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