Fixation of TV u/s 3(2) of CEA, 1944 in respect of heading 33.04 goods - Skin Care Preparations
YESTERDAY, we reported the Notification 16/2013-CE(NT) dated 31/12/2013 in terms of which the Board has found a novel way to pull a manufacturer of goods falling under heading 33.04, who was getting himself excluded from the umbrella of section 4A of the CEA, 1944, back into the MRP valuation by resorting to the provisions of section 3(2) of the CEA, 1944.
It seems that the Board wants to explain the said notification in lucid terms to the field formations and has, therefore, come out with a letter for the departmental officers. It reads -
"Your attention is invited to notification No.16/2013-Central Excise (NT), dated 31.12.2013, prescribing tariff value under section 3(2) of the Central Excise Act, 1944 in respect of goods falling under tariff heading 3304 (beauty or make-up preparations and preparations for the care of the skin, etc.) of the Central Excise Tariff and in respect of which the provisions of section 4A of the Central Excise Act, 1944 do not apply. The tariff value shall be the retail sale price (RSP) less abatement as prescribed for such goods under notification No.49/2008-Central Excise (NT), dated 24.12.2008. Presently, the abatement rate in respect of goods falling under tariff heading 3304 is 35%. Thus, the tariff value under section 3(2) of the CEA, 1944 for such goods shall be 65% of RSP."
Fine, but what happens if the manufacturer fiddles with the retail sale price or does not affix the RSP? What should be done is not forthcoming in the notification.
Perhaps, the TRU would again come out with a notification incorporating or bridging the provisions of section 4A(4) of the CEA, 1944 and the Central Excise (Determination of Retail Sale Price of Excisable Goods) Rules, 2008.
Save your skin, the manufacturer might say!
TRU letter F.No.345/2/2013-TRU, Dated January 02, 2014.