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Determining Excisable Value of Goods

The excisable value of goods is determined based on the price at which the goods are ordinarily sold by the manufacturer to an unrelated buyer in the course of wholesale trade for delivery at the time and removal. This is subject to three provisos: 1) If the wholesale price cannot be ascertained, the nearest ascertainable equivalent is used. 2) If the wholesale price is for delivery elsewhere, the transportation cost from removal to delivery is excluded. 3) Related party sales are not used to determine excisable value.

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60 views1 page

Determining Excisable Value of Goods

The excisable value of goods is determined based on the price at which the goods are ordinarily sold by the manufacturer to an unrelated buyer in the course of wholesale trade for delivery at the time and removal. This is subject to three provisos: 1) If the wholesale price cannot be ascertained, the nearest ascertainable equivalent is used. 2) If the wholesale price is for delivery elsewhere, the transportation cost from removal to delivery is excluded. 3) Related party sales are not used to determine excisable value.

Uploaded by

gs randhawa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The price at which the excisable goods are ordinarily sold by the assessee to a buyer in

the course of wholesale trade for delivery at the time and place of removal as defined in
sub-section (4)(b) of Section 4 is the basis for determination of excisable value provided,
of course, the buyer is not a related person within the meaning of sub-section (4)(c)
of section 4 and the price is the sole consideration for the sale. This proposition is subject
to the terms of three provisos to sub-section (l)(a) of section 4;

(ii) Where the price of excisable goods in the course of wholesale trade for delivery at the
time and place of removal cannot be ascertained for the reason that such goods are not
sold or for any other reason, the nearest ascertainable equivalent thereof deter-mined in
the manner prescribed by the Central Excises (Valuation) Rules, 1975 should be taken as
representing the excisable value of the goods;

(iii) Where wholesale price of any excisable goods for delivery at the place of removal is
not known and the value thereof is deter-mined with reference to the wholesale price for
delivery at a place other than the place of removal, the cost of transportation from the
place of removal to the place of delivery should be excluded from such price;

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