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TMI BlogMRP Based valuation in Central Excise – Quantity DiscountX X X X Extracts X X X X X X X X Extracts X X X X ..... MRP Based valuation in Central Excise – Quantity Discount X X X X Extracts X X X X X X X X Extracts X X X X ..... uired to fixed and attracting the provision of Section 4A of the Central Excise Act, a question was arisen that: "Whether quantity discount is allowed and no excise duty shall be charged on goods sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plied as quantity discount". Honorable Tribunal in the matter of M/s INDICA LABORATORIES PVT. LTD. Versus COMMISSIONER OF C. EX., AHMEDABAD reported in 2007 -TMI - 1511 - CESTAT, AHMEDABAD has held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat, (a) Sale is not a necessary condition for charging to excise duty. Duty becomes payable (unless otherwise exempted) in respect of every removal of excisable goods. (b) The concept of quantity d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscount applicable in the context of valuation under Section 4 is not applicable in determining value under Section 4A for the forgoing reasons. (c) In the present case, the sale is for the gross qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity at the net price and the claimed free supply is not meant for the ultimate customer; such quantity claimed to be given also carried MRP. Therefore, duty shall be discharged on the entire quantit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y including goods covered as "the quantity discount" on the basis of valued arrived at under Section 4A after giving the abatement provided for.
(Also see: article on MRP based valuation) X X X X Extracts X X X X X X X X Extracts X X X X ..... Press release - PIB ..... X X X X Extracts X X X X X X X X Extracts X X X X
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