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Procedures regarding declaration in respect of marketing pattern,
discount structure etc. to be filed by an assessee under Rule 173C (3A)
Circular
No. 272
dated 21st November 1996
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 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
Ranges Superintendents 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 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.
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/ buyers-
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
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i)
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a)
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Transport
charges upto place of removal
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Yes
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No
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b)
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Maintenance
and distribution charges at the depot etc.
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Yes
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No
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ii)
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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?
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Yes
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No
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iii)
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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?
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Yes
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No
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iv)
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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?
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Yes
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No
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v)
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For
advance/ deposit, do you pay any interest to your customers? If so, at
what rate (s)?
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Yes
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No
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vi)
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Any
monetary consideration, direct or indirect than what is declared in the
Invoices, collected from dealers, customers, for any services?
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Yes
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No
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vii)
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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?
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Yes
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No
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viii)
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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?
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Yes
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No
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ix)
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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?
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Yes
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No
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x)
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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?
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Yes
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No
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xi)
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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.
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Yes
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No
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Xii)
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Whether
you are collecting from customers:
(a)
actual freight/ actual insurance.
(b) Higher than actual
freight/ actual Insurance.
(c) Equalised freight.
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______
______
______
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xiii)
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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?
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Yes
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No
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xiv)
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Is
the assessable value of the goods declared to the Deptt. less than the
per unit cost of product?
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Yes
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No
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xv)
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Are
you collecting from your buyers the same excise duty as you are paying
to the Deptt.? (Please tick mark the appropriate box.)
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Yes
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No
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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:
Place:
Signature
of the Assessee or his authorised signatory _____________
Acknowledgment
Date
of Receipt: _____________________________
Signature
with official stamp: ___________________
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