Circular No. 272/106/96-CX dated 21/11/96
Sub: Central Excise-Declaration in respect of marketing pattern, discount structure etc.
to be filed by assessee under Rule 173C(3A) .- Procedure
Attention is invited to Notification No. 36/96-C.E. (NT) dated 20.U.96, whereby
the new Sub-rule 3A has been inserted in Rule 173C, of the Central Excise Rules, 1944
(hereinafter referred to as "the said rules"), whereby an assessee is requited to
declare to the proper officer his marketing pattern, discount structure and any other
particulars in the manner prescribed by the Board or the Commissioner of Central
Excise at the beginning of each financial year and a" fresh declaration thereafter in
case there is any change in the declaration within the same financial year.
2. In exercise of the powers conferred by the aforesaid sub-Rule, the Board has
decided that every assessee registered with the Central Excise Department under Rule
174 and working under provisions of Chapter VII-A of the said rules shall prepare
giving complete information/declaration in quadruplicate and submit original,
duplicate and triplicate to the Range Superintendent in the "proforma enclosed at
Annexure-A., at the beginning of each financial year, latest by 15th of April. In
case there is any change in the information/declaration, a fresh declaration shall be
filed immediately highlighting the changes. The Range Superintendent shall acknowledge
the receipt of the declaration on the assessees copy i.e. the quadruplicate copy of
the declaration.
3. The Range Superintendent will check the declaration and if necessary compare it
with the previous declarations and submit all the copies of the declaration to the
Divisional Assistant Commissioner along with his verification report within 15 days of
the receipt.
4. The Divisional Assistant Commissioner will examine the declaration and endorse all
the copies in token of his verification. He will send the duplicate copy of the
declaration to the Range Superintendent and the triplicate copy to the Valuation Cell
of the Commissionerate and retain the original copy with him.
5. In case the information contained in the declaration appears, prima facie,
incorrect, or the declaration indicates that the assessable value declared by the
assessee as required under rule 173C(1) is/are apparently not in conformity with
Section 4 of CEA, 1944, the Divisional Assistant Commissioner may cause necessary
inquiry to be conducted and shall take immediate steps to safeguard revenue. The
powers conferred by sub-rule 3 of. Rule 173C may be resorted to. The RT-12 Returns may
be selected for detailed scrutiny under new Rule 1731. The provisional assessment may
also be resorted to after strictly adhering to the provisions of the new Rule 9B,
provided the other for the provisional assessment shall be made after obtaining
the concurrence of the concerned Addl. Commissioner / Deputy Commissioner, and
provided also that such provisional assessment is finalised within a period of 3
months.
7. The first declaration shall be filed on or before 15th December, 1996, and thereafter as
provided in the new sub-rule.
Sd/-
(P.K. Sinha)
Under Secretary (CX.6)
F.No. 212/12/96-CX.6
Annexure "A"
Declaration under Sub-Rule 3A of Rule 173C
original
duplicate
triplicate
quadruplicate
Financial Year
Date of Filing
Name and Address of manufacturing, unit ___________________________ Commissionerate ______________ Division ____________ Range _____________ Excise Control Code No._________________
Registration No. ________________
I. Category:
(a) Proprietorship concern
(b) Partnership firm
(c) Private Limited Company
(d) Public Limited Company
(e) Public Sector Undertaking
(Tick the category applicable)
II. Marketing Pattern:-
i) Manner of disposal of excisable goods:-
a) at factory gate
b) captive consumption
c) through depots/branch offices
d) through stockists/consignment agents
e) from other places after removal from the factory
f) exports
Yes No
-under bond :_______ _______
_______ _______
-on payment
of duty :_______ _______
Note:
a) Give the address & places where depots/branch offices located.
b) Give the address & places where stockists/consignment agent etc.
located.
c) Tick the category which is applicable.
ii) Marketing Agencies :-
a) through wholesale dealers
b) through wholesale distributors
c) through sole selling agents
d) direct to industrial customers
e) to Government Departments
f) through related persons
g) other agencies/retailers
Note:
a) Tick categories applicable.
b) If there is (are) any general agreement(s) with any of the
dealers/distributors/stockists/agency, please enclose copies thereof.
c) Attach list and addresses of the dealers / distributors through whom the
goods distributed.
c) Give particulars of sole selling agents / other agencies through whom
goods distributed / sold.
III. Pricing Pattern :-
A) For wholesale dealers/buyers-
- Is there any declared/published price(s) at which excisable goods are
normally sold to the wholesale buyers/dealers?
- whether the price to wholesale dealers is the same for dealers all over
the country or it varies on the basis of region/territory/State etc.
- Have you any system of giving Trade Discount(s) over the
declared/published prices to wholesale dealers/buyers depending upon
volume of sale etc.?
- Is discount given on uniform basis for same volume of sale to same class
of buyers?
If so, please indicate the declared policy of discount made known to all
dealers /distributors and the extent(s) of discounts allowed over the
declared /published - wholesale prices. (Attach suitable, sheets
explaining the discount policy.)
- Whether the pricing pattern is :
a) all inclusive i.e.-, it takes into account all taxes and duties,
or
b) these takes/duties are billed separately over a per unit priori
In case of former, indicate the deductions claimed to arrives the
value for excise duty. (Attach copy of latest price list and
declared discount policy)
B) For sale to Industrial Consumers
- Are you selling to Industrial consumers the particular excisable
goods at uniform price or the price charged varies considering
the competitive biddings by other suppliers, volume of order and
other purely commercial considerations; is there any system of
entering into contracts? Please indicate percentage variation
between the contracted prices and the normal price charged to
wholesale dealers.
- Are you using any input/raw material/component/parts accessories
etc. supplied free of cost by your buyer? If so, details may be
supplied including its impact on the assessable value.
C)General Information:
i) Is sale price at the place of removal include
a) transport charges upto place of removal Yes No
_______ _______
_______ _______
b) maintenance and distribution charges at Yes No
the depot etc. _______ _______
ii) Do your wholesale dealers/buyers include Yes No
organizations where you or your partner _______ _______
or directors or their relatives are owners _______ _______
/ shareholders / directors /partners or
others having overall control over the
affairs of those agencies?
iii) Are you collecting from your customers any Yes No
advances/deposits or other valuable _______ _______
considerations and whether these advances/ _______ _______
deposits etc. are adjusted at the time
of delivery of goods, against the final
price charged?
iv) Do you charge same prices whether or not any Yes No
advance/deposit is made, for the same goods? _______ _______
If so indicate the percentage of sales without _______ _______
any advances/deposits and also for goods for
which advances/deposits accepted?
v) For advance/deposit, do you pay any interest Yes No
to your customers? It so, at what rate (s)? _______ ________
_______ ________
vi) Any monetary consideration, direct or in- Yes No
direct than whats is declared in the _______ ________
Invoices, collected from dealers, customers, _______ ________
for any services?
vii) Are your wholesale dealers/ distributors/ Yes No
sole selling agents etc. undertaking on _______ ________
your behalf any advertisements or sales _______ ________
promotion activities or any servicing or
other activity for the goods manufactured
& marketed by you, either by express or
implied instructions/ understanding/
agreement?
viii) Are you collecting the cost of packing from Yes No
the customers as part of the normal price _______ ________
declared & charged to the customers or _______ ________
any packing charges to the Invoice,
without taking them as part of value for
excise duty?
ix) Do you charge any thing for special packing Yes No
which you claim does not form part of the _______ ________
assessable value of the goods for duty _______ ________
purposes?
x) Do you charge/bill separately or show Yes No
separately in the invoice, for handing & _______ ________
forwarding charges over and above the _______ ________
price taken for excise duty purpose?
xi) Where you sell the goods on credit, have Yes No
you any normal credit period? Whether _______ ________
you charge interest only for the delay _______ ________
over policy of charging of interest.
xii) Whether you are collecting from customers:
(a) actual freight/actual insurance. __________
(b) Higher than actual freight/ actual __________
Insurance.
(c) Equalised freight.
xiii) Whether any supplimentary bills/invoice/ Yes No
credit notes are issued to your buyers for _______ ______
final prices or recovery of any expenses in _______ ______
connection with the goods manufactured &
sold by you, over and above the invoice
price on which duties are normally paid?
xiv) Is the assessable value of the goods Yes No
declared to the Deptt., less than the per _______ _______
unit cost of product? _______ _______
xv) Are you collecting from your buyers the Yes No
same excise duty as you are paying to the _______ _______
Deptt.? _______ _______
(Please tick mark the appropriate box.)
iv. Any other information relevant to pricing/marketing system (you may attach a note)
D E C L A R A T I O N
I/We, hereby solemnly declare and affirm that the information given above is
true and correct in all respects.
Date :
Signature of the Assessee
Place : or his authorised Signature
Acknowledgment
Date of Receipt : ________________________________________
Signature with official stamp : ___________________________
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