TMI Blogany notication against supply to govt agencies on rate contract basis thru tender not appliacable MRP ProcedureX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, we are procuring order through tender for supply of medicines to various govt supply body ESIC where contract rate applicable only not on MRP Basis we are doing the same since last 15 years. But recently excise audit team questioning why you are selling on rate contact instead of MRP and asking for any notification or guide from govt. Now what we should give reply regarding this q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uery. Pl help. - Reply By Pradeep Khatri - The Reply = Dear Mr. Roy, MRP-based valuation is governed by Section 4A of the Central Excise Act, 1944. The primary requirement attracting MRP-based valuation of goods under excise is that the goods should be notified under Section 4A of the Act and should be covered within the purview of the Standards of Weights Measures (Packaged Commodities) Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 1977. These rules do not apply to packaged commodities that are meant for sale to industrial/institutional consumers, who purchase the commodities for using the products in their industry. Sale of bulk quantities of your product, not intended for sale in retail, to industrial buyers would be outside the purview of the Legal Meterology Act, 2011 (Earlier Standards of Weights Measures (Package ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Commodities) Rules, 1977) and, therefore,may not attract MRP-based valuation for the purpose of payment of excise duty. Facts are needed to be checked in your case before providing you a firm opinion. If possible, please share with the us the letter issued by the Audit team. Please send it on yagay@in.com We will revert after checking the material facts and it gona be a free opinion wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout any cost to you. Best Regards, Pradeep Khatri - Reply By vijay kumar - The Reply = The provisions of MRP based assessment under Section 4A are subject to applicability of Legal Metrology Act,2009 (previously Standards of Weights and Measurements Act, 1976). Hence you have to check whether there is any exemption available to you from printing MRP on the packages on account of Institutio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal sales or any other reason. In case of doubt, you may ascertain the same from the local Legal Metrology authorities. Thus, if you are not obliged to print MRP on the packages in terms of the said Act, there is no need to go for MRP assessment under Section 4A . Otherwise you would be violating both LMA and CEA . There is no notification in this regard since Section 4A itself is clear and u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may accordingly deal with the matter. - Reply By sunil ahuja - The Reply = MRP is applicable in case of retail sales only... when there is bulk supplies / rate contract sales then such sales are exempted from MRP valuation in terms of Rule 34 of Packed commodities rules. - any notication against supply to govt agencies on rate contract basis thru tender not appliacable MRP Procedure - Query ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Started By: - nandankumar roy Dated:- 4-5-2012 Central Excise - Got 3 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management 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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