Relaxation in Tariff value in case of branded readymade garments but should be equal to transaction value in case of job work, transaction between job workers and merchant

Relaxation in Tariff value in case of branded readymade garments – tariff value reduced from 60% to 45% and tariff value shall be equal to transaction value in case of job work, transaction between job workers and merchant

G.S.R. (E). – In exercise of the powers conferred by sub-section (2) of section 3 of the Central Excise Act, 1944 (1 of 1944), the Central Government, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 20/2001-Central Excise(N.T.), dated the 30^th April,2001 published in the Gazette of India, Extraordinary, vide G.S.R.318 (E), dated the 30^th April,2001, namely: -

In the said notification, -

(i)                  in the opening paragraph, for the words and figures “at the rate of 60% of the retail sale price”, the words and figures “at the rate of 45% of the retail sale price”; shall be substituted;

(ii)                after the opening paragraph the following shall be inserted, namely:-

^„Provided that where goods bearing the brand name of another person are cleared in the course of sale by a manufacturer to such person and the retail sale price is not affixed on the goods, the transaction value of such goods shall be deemed to be the tariff value.^‟

Illustration:

If a manufacturer X clears goods bearing a brand name “ABC” to Y, who is the brand name owner on sale basis at the transaction value of ` 200/- per garment, duty at the rate of 10% would be chargeable on Rs. 200 /-which is the deemed tariff value^‟;

Explanation:- For the purposes of this notification the ^„transaction value^‟ shall have the meaning assigned to it under section 4 of the Central Excise Act, 1944 (1 of 1944).

[F. No. B-1/3/2011 –TRU]

(Sanjeev Kumar Singh) Under Secretary to the Government of India

Note.- The principal notification No. 20/2001-Central Excise(N.T.), dated the 30^th April,2001, published in the Gazette of India, Extraordinary, vide number G.S.R.318(E), dated the 30^th April,2001 was last amended vide notification no.7/2011-Central Excise, (N.T.),dated the 1^st March,2011, published vide number G.S.R.138(E), dated the 1^st March,201 1.

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