9911796707
TMI BlogDetermination of assessable value - Changes made in the Budget 1996-97- Regarding.X X X X Extracts X X X X X X X X Extracts X X X X ..... hich such goods are cleared from the factory. The significance of these changes is that sale price at any of the "places of removal" will be the normal price for levy of excise duty and there can be different assessable values for the same excisable goods depending upon the place of removal. It also means that duty will be required to be paid at the time of clearance of goods from the factory for those goods which are sold by the manufacturer at depot, consignment agents or any other place etc. at a sale price of the place of removal i.e. depot, consignment agents etc. Where the goods are sold at the factory gate, there would be no problem. In view of the budgetary changes, certain doubts have been raised regarding determination of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red at factory gate is not available/ known for unavoidable reasons, or the price fluctuates frequently the provisional assessment can be resorted to and all efforts should be made to finalise the assessment at the earliest. Point of Doubt Whether one normal price will have to be worked out for all depots or different normal prices for different depots may be accepted for assessment purposes. Clarification If the goods are sold by the assessee from different depots at different normal prices, each such normal price shall be assessable value for the goods sold from each such depot. Point of Doubt Whether differential Central Excise liability will have to be collected/ refunded if the goods are transferred from one sale depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be applicable in such cases. Section 4(2) is applicable only in cases when sale price is not known at the place of removal. Point of Doubt Whether there will be change in the valuation of goods manufactured on job work basis. Clarification It an independent job worker processes the goods and returns it back to the supplier of goods, the prescription of other "places of removal" in the Budget will not make any difference in such cases. For such goods the valuation can be done on the basis of price of comparable goods under Rule 6(b) (i) or failing that under Rule 6(b)(ii) of the Valuation Rules, on the basis of the basis of the cost of manufacture plus notional profit, in order to arrive at the nearest ascertainable equivale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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