Gift is liable to excise duty or not, Central Excise

[Mridul Sethi]

A product gifted (not sold) by a manufacturing concern(say car by Maruti Udyog) in any contest is liable to excise duty or not?

Posts / Replies

[Pradeep Khatri]

Central Excise duty is on Manufacturing of goods and for convenient purpose, it is being collected on the removal of goods.

Therefore, Central Excise duty will be paid on such kind of removals.  VAT will not be payable but the ITC on inputs involved in manufacturing of car will be burnout.

[MANDAVILLI RAMAKRISHNA]

excise duty to be paid basing on the assessable value but not on the basis of commercial value. so you have to pay.

[Harishanker Patel]

Sir,

What will be the assessable value for a gifted car whether it may be only CAS4 amt or CAS4+10% or any other.