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TMI BlogValuation of Excisable GoodsX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Learned Friends, Kindly clarify the following query: A company manufacture several goods which are covered under central excise. In order to push up the sales of a particular product (Product A) of its,it offers another of its products (Product B) free of cost to customers/dealers as a combo by paying the applicable excise duty on the transaction value of Product(A) alone and reverse the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roportionate cenvat credit taken on the inputs of the Product(B) there by not paying CED on the Product (B) while clearing the Combo (Product A+ Product B) For instance duty is paid on Thermic Jug which is cleared along with free Items water bottle or say a Quilt with Pillows.Is such type of transaction permissible? I heard there are quite a few decisions by Tribunals and Courts on this kind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Combo Offer . Kindly let me know the correct procedure. Thanks and Regards, K.Srivatsan - Reply By Pradeep Khatri - The Reply = Dear Srivastsan Krishnamachari, Please make it clear that the primary product you intent to remove with the secondary free products as combo offer whether falls under Section 4 or under Section 4A of the C.E.Act, 1944 ? Please confirm. Regards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... YAGAY and SUN (Management, Business and Indirect Tax Consultants) - Reply By Madhukar N Hiregange - The Reply = If the products are covered under transaction value - sec 4, then the combined goods removed at the actual value charged would be the value for both. In fact in such cases the cenvat credit need not be reversed on the inputs used in the other product. If the products are unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r -MRP based valuation then the MRP less abatement of both would have to be considered. - Reply By Pradeep Khatri - The Reply = Dear Srivastsan Krishnamachari, If no MRP on free gifts/samples, then, valuation would be done on the basis of Section 4 - Jayanti Food Processing v CCE (2007) 10 STT 375 = 215 ELT 327 (SC) = 2007 (8) TMI 3 - Supreme Court and if MRP is printed on free samples, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuation has to be on the basis of MRP - CCE v Godrej Industries 2006 (200) ELT 348 (CESTAT).= 2006 (1) TMI 23 - CESTAT, MUMBAI Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) - Reply By Rajesh Nathoo - The Reply = Dear Mr. Madhukar N Hirenge and Mr. Pradeep Khatri , I thank both of you for your prompt replies on such complicated issues . I rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d your articles and replies with keen interest and always feel enriched . You people are mentors for me. May God Bless both of you. With Regards , Rajesh Nathoo - Valuation of Excisable Goods - Query Started By: - Srivatsan Krishnamachari Dated:- 27-9-2014 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agement India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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