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TIOL-DDT 904 · Wednesday, 9 July 2008 · story 1 of 5

Effective Rate of Duty on Cement – CBEC clarifies

By Vijay Kumar

As per Notification No. 4/2006-CE dated 1.3.2006, the duty on cement is as follows:-

1A .

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All goods, whether or not manufactured in a mini cement plant, not covered in S.No . 1 and cleared in packaged form,-

1. of retail sale price not exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price not exceeding Rs. 3800;

Rs. 350 per tonne

2. of retail sale price exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price exceeding Rs. 3800

12% of retail sale price

1B .

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All goods, manufactured in a mini cement plant, other than
those cleared in packaged form;

Rs.250 per
tonne

1C .

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All goods, whether or not manufactured in a mini cement
plant, not covered in S.No.1B , other than those cleared in
packaged form;

14% or Rs.400 per tonne, whichever is higher.

The Explanation adds,

“retail sale price” means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be, and
the price so printed is the sole consideration for the sale:

Provided that if the goods are cleared in wholesale packages containing a number of standard packages with retail sale price declared on them, then, such declared retail sale price shall be taken into consideration for determining the rate of duty under respective S.Nos . referred to above: Provided further that if the declared sale price on wholesale package and on the standard packages is different in terms of per tonne equivalent sale price, then, the per tonne equivalent sale price of the wholesale package or per tonne equivalent retail sale price of the standard packages, whichever is higher, shall be taken into consideration for determining the rate of duty:

Provided also that where the retail sale price of the goods are not required to be declared under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, and thus not declared, the duty shall be determined as is in the case of goods cleared in other than packaged form;

Now the Board clarifies,

As per the provisions of Standard of Weight and Measures Act, 1976 and the rules made thereunder, in the following circumstances sale of goods even in packaged form will not attract the provisions of said act or the rules made there under :

i) In case the size of the bag is more than 50 kg .

ii) Where the sale is to an Institutional/Industrial consumer as defined under SWMR (PC) rules;

iii) The sale is not a retail sale as per the definition of 'retail sale' under the aforesaid rules.

No RSP is required to be printed on the goods in respect of above mentioned categories of sale. Hence they will be covered under Sl. No. IB or IC of the notification No. 4/2006- CE by virtue of second proviso to Explanation II in the notification No. 4/2006 dated 1.3.2006 as amended.

Board wants all pending disputes to be settled on the basis of the above clarification.

CBEC 's Letter F. No. 124/02/2008- CX -3 Dated: June 12, 2008