Circular No. 813/10/2005-CX
25th Apirl, 2005

F.No. 209/30/2003-CX 6

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

Subject:- Clarification  with regards to valuation of the goods, reg.


I am directed to refer to Board”s letter No. 6/39/2000-CX.I dated  1.7.2002 clarifying certain points relating to the Central Excise   Valuation ( Determination of Price of Excisable Goods) Rules,2000.

2. A number of references seeking further clarification on some of the points clarified in the Circular mentioned in para 1 above have been received in the Board.  These points are being clarified in the table enclosed. These clarifications supercede the clarification given in above referred circular.

3. Trade Notices may be issued for the benefit of the Trade.

4. Hindi version will follow.

5. Receipt of this circular may kindly be acknowledged.

Yours faithfully

Ashok Kumar
Under Secretary to the Govt. of India


Dated  the 25th Apirl, 2005

Sl.No. Old  Sl.No.

Point   of Doubt


1. 13 How will valuation of samples be made done which are distributed free, as part
of marketing strategy, or as  gifts
or donations?
In case of free samples, the  value should be determined under  Rule 4 of Central Excise Valuation

( Determination of Price of Excisable Goods) Rules, 2000.

2 14 How will valuation be done when inputs

or capital goods, on which CENVAT

credit has been taken, are removed as such

from the factory, under the erstwhile

sub-rule (1C) of rule 57AB of the

Central Excise Rules, 1944or under rule

3 (4) of the Cenvat Credit Rules, 2001

or 2002?

In such situations, the provisions of Rule 3(5) of Cenvat Credit Rules, 2004 would apply.

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Category : Excise Duty (4154)
Type : Circulars (7812) Notifications/Circulars (32219)

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