DRAFT CIRCULAR DATE 21/04/2006

MRP based levy of excise duty on certain goods - regarding
You may recall that MRP based levy of excise duty has been extended to plant growth regulators (3808 30 40) with effect from 1 st May, 2006.

2. As per section 4A of the Central Excise Act, 1944, the Central Government is required to prescribe abatement from the retail sale price to arrive at the assessable value for levy of excise duty.

3. In order to enable the Advisory Committee on Abatement to take a view on the extent of abatement for the aforementioned goods under the said section, it is requested that the following information in respect of the manufacturing of the said goods by your members may be obtained and furnished:

• Ex-factory price of the goods i.e. assessable value;

• Excise duty paid;

• Sales tax and other taxes paid;

• Wholesale price inclusive of all taxes;

• Retail price (MRP or printed price);

• Trade practices and sale pattern such as sole distributor, wholesale distributor, retailer;

• Details of trade discounts. If it is based on written agreement, copy of the agreement may be obtained and forwarded. Details may be verified with the actual data;

• Information may be obtained for different segments of the industry (small, medium and large) and based on recent data; and

• Any other data relevant for the purpose of arriving at the abatement.

4. The above information alongwith suggestions may please be sent to the undersigned by 28 th April, 2006 by fax (011-23093037) or e-mail (tru.finmin@gmail.com).

Yours truly,

(R. Sriram)
Deputy Secretary (TRU)

F. No. B1/1/2006-TRU

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