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Circular No. 272/106/96- Central Excise

dated 21/11/96
F.No. 212/12/96-CX.6

Government of India

Ministry of Finance

Department of Revenue, New Delhi

Subject: Central Excise -Declaration in respect of marketing pattern, discount structure etc. to be filed by an assessee under Rule 173C(3A) -Procedure regarding.

Attention in invited to Notification No. 36/96-C.E. (NT) dated 20.11.96 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 required 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 quarduplicate 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 Ranges Superintendents shall acknowledge the receipt of the declaration on the assessees copy i.e. the quarduplicate 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 revenues. The powers conferred by sub-rule 3 of Rule 173 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 order 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.

6. In case the declared value under rule 173C(1) is not accepted by the Department, action for re-assessment following the provisions of section 11A of the Act shall be initiated as contemplated under sub-Rule 4 of Rule 173C.

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)

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 dealers

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.

d)    Give particulars of sole selling agents/ other agencies through whom goods distributed/ sold.

III. Pricing Pattern:-

A) For wholesale dealers/duyers-

i)    Is there any declared/ published price(s) at which excisable goods are normally sold to the wholesale buyers/ dealers?

ii)    whether the price to wholesale dealers is the same for dealers all cover the country or it varies on the basis of region/ territory/ State etc.

iii)    have you any system of giving Trade Discount(s) over the declared/ published prices to wholesale dealers/ buyers depending upon volume of sale etc.?

iv)    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 whole-sale prices. (Attach suitable sheet explaining the discount policy).

v)    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 price.? In case of former, indicate the deductions claimed to arrive at the value for excise duty. (Attach copy of latest price list and declared discount policy)

B)    For sale of Industrial Consumers-

i)    Are you selling to Industrial consumers the particular excisable goods at uniform price or the price charged varies considering the competitive bidding by other suppliers, volume of order and other purely commercial consideration; is there any system of entering into contracts?  Please indicate percentage variation between the contracted prices and the normal price charged to wholesale dealers.

ii)    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 the
depot etc.
Yes
_____
_____
No
_____
_____

ii)

Do your wholesale dealers/ buyers include persons / organisations where you or your partner or directors or their relatives are owners/ shareholders/ directors/  partners or others having overall control overall control over the affairs of those agencies? Yes
_____
_____
No
_____
_____

iii)

Are you collecting from your customers any 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? Yes
_____
_____
No
_____
_____

iv)

Do you charge same prices whether or not any 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? Yes
_____
_____
No
_____
_____

v)

For advance / deposit, do you pay any interest to your customers? If so, at what rate (s)? Yes
_____
_____
No
_____
_____

vi)

Any monetary consideration, direct or indirect than what is declared in the Invoices, collected from dealers. customers, for any services? Yes
_____
_____
No
_____
_____

vii)

Are your wholesale dealers/ distributors/ sole selling agents etc. under taking on your behalf any advertisements or sales promotion activities or any servicing or other activity for the goods manufactured and marketed by you, either by express or implied instructions/ understanding/ agreement? Yes
_____
_____
No
_____
_____

viii)

Are you collecting the cost of packing from the customers as part of the normal price declared & charged to customers or any packing charges are billed separately. or shown separately in the Invoices, without taking them as part of value for excise duty? Yes
_____
_____
No
_____
_____

ix)

Do you charge any thing for special packing which you claim does not form part of the assessable value of the goods for duty purposes? Yes
_____
_____
No
_____
_____

x)

Do you charge/ bill separately or show separately in the invoice, for handing and forwarding charges over and above the  price taken for excise duty purposes? Yes
_____
_____
No
_____
_____

xi)

Where you sell the goods on credit, have you any normal credit period? Whether you charge interest only for the delay over the credit period? Please elaborate your policy of charging of interest. Yes
_____
_____
No
_____
_____

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 supplementary bills/ invoices/ 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 prices on which duties are normally paid? Yes
______
______
No
_____
_____

xiv)

Is the assessable value of the goods declared to the Deptt. less than the per unit cost of product? Yes
______
______
No
_____
_____

xv)

Are you collecting from your buyers the same excise duty as you are paying to the Deptt.?
(Please tick mark the appropriate box.)
Yes
______
______
No
_____
_____

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 in true and correct in all respects.

Date:
Signature of the Assessee
Place:
or his authorised signatory

 Acknowledgment

Date of Receipt:_____________________________
Signature with official stamp :______________________________

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