OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE : MUMBAI-III

VARDAAN TRADE CENTRE, 4TH FLR, ROAD NO. 16, W.I.E., THANE 400 604 TEL : 2 58 00 617

 

 

TRADE NOTICE NO. 12 Gen(12 )/C.Ex./M-III/2005  DATED  30 .05.2005

 

 

Subject:- Clarification  with regards to valuation of the goods, reg.

 

 

A number of references seeking clarification on certain points relating to the             Central Excise  Valuation ( Determination of Price of Excisable Goods) Rules, 2000 have been received. These points have been clarified in the following table. These clarifications supercede the clarifications given at Sr. No. 13 & 14 of Board’s earlier letter No.6/39/2000-CX.1         (Circular No.643/34/2002-CX)  dated 01.07.2002.

 

Sr.No.

Points of Doubts

Clarification

1.

How will valuation of samples be done which are distributed free, as part of marketing strategy, or as  gifts or donations?

In case of free samples, the  value should be determined under  Rule 4 of Central Excise Valuation ( Determination of Price of Excisable Goods) Rules, 2000.

2

How will valuation be done when inputs or

capital goods, on which CENVAT credit has

 been taken, are removed as such from the  factory, under the erstwhile sub-rule (1C) of       rule 57AB of the Central Excise Rules, 1944        or under rule 3 (4) of the Cenvat Credit Rules, 2001 or 2002?

In such situations, the provisions of Rule 3(5) of Cenvat Credit Rules, 2004 would apply.

 

 

 

2.        All trade associations are requested to bring the contents of this Trade Notice to the notice of their member manufacturers in particular and the trade in general.

 

                                                                                                            sd/-

                                                                                            (K.K. SHRIVASTAVA)     

                                     COMMISSIONER                                                                    

                         CENTRAL EXCISE : MUMBAI-III

F.No.V.Gen(8)5/2005/M-III

Thane, the  

 

Copy to : All Trade Associations as per Mailing List / Member of RAC (OS) & SSI by

                name / All Chambers of Commerce/Press Information Bureau.

               All Additional Commissioner / Joint Commissioners /

   All Divisional Deputy/Assistant Commissioners (with 10 spare copies) /

   Assistant Commissioner (Audit) / Brand Rate Unit / P.R.O. (Notice Board).

   Office of the Chief Commissioner of Central Excise & Custom, Mumbai, Zone II.

 

(Based on Board’s Circular No. 813/10/2005-CX issued under F.No. 6/18/2003-CX.1              dated 25th  April, 2005)