TMI BlogInter unit matl movement - BED pmt regX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All, We are 2 mfg unit, clearance is MRP based product. one is main and another is branch. All goods are sold to customer from main unit only. Goods manufactured in branch coming to the main unit as finished and semi-finished and sold to customers from main unit only. While removing goods from branch to main unit we are paying duty on MRP rate finished goods.? Is it ok? Or we need to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 110% cost of goods for all items? MRP based duty is only for customers? Is there any provision without pmt duty for inter unit transactions? Pl provide ur valuable replies Thanks in advance Venkat - Reply By Rajagopalan Ranganathan - The Reply = Sir, If the products manufactured at branch is complete in all respect and MRP is fixed on the package there itself then the branch will pay d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty on the value calculated under Section 4A of Central Excise Act, 1944 which is prevailing at the main unit at the time and date of clearance from the branch office. If the excisable goods manufactured in the branch are sent to main unit where the goods are subjected to further processing and packed and MRP is affixed, then the branch is to clear the excisable goods under rule 8 of Val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation Rules , that is 110% of cost production which is based on CAS-4 certificate issued by a Cost Accountant. There is no provision under Central Excise Act, 1944 to clear manufactured excisable goods without payment of duty unless such goods are unconditionally exempted by appropriate Notification issued by the Government under Section 5A of Central Excise Act, 1944 . Similarly excisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble goods meant for export may be cleared without payment of duty under bond/Letter of Undertaking. - Reply By Ganeshan Kalyani - The Reply = I agree with the views submitted by Sri Rajagopalan Sir. It enriched my knowledge. Thanks. - Reply By KASTURI SETHI - The Reply = I also concur with the excellent reply of Sh.Rajagopalan Ranganathan, Sir. My doubts also stand cleared now. Thanks a lot, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir. - Reply By surya narayana - The Reply = Dear Friend, The views expressed by our learned friends are correct . To put it in simple way, If the products under clearance from Branch main unit or vice versa, finished goods covered under MRP, the duty to be paid on the value of MRP-Abatement If the products are not finished, you have to pay duty on the value of 110% of the productio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n cost based on CAS4 Further, there is no exemption from payment of duty on the inter-unit clearances unless the products are exempted Best Regards Suryanarayana - Reply By CS SANJAY MALHOTRA - The Reply = Agreed with Sh. Rajagopalan ji, no need for mention of phrase highlighted in Red as put the things differently for Valuation. If the products manufactured at branch is complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in all respect and MRP is fixed on the package there itself then the branch will pay duty on the value calculated under Section 4A of Central Excise Act, 1944 which is prevailing at the main unit at the time and date of clearance from the branch office. - Reply By KASTURI SETHI - The Reply = SH.CS SANJAY MALHOTRA Ji, Thanks Sir for throwing more light on the issue. - I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nter unit matl movement - BED pmt reg - Query Started By: - venkat eswaran Dated:- 15-4-2016 Central Excise - Got 6 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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