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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 221] NEW DELHI, FRIDAY, AUGUST 8, 1975/SHAVANA 17, 1897

Separate paging is given to this Part in order that it may be filed as a separate compilation

MINISTRY OF FINANCE

(Department of Revenue and Insurance)

NOTIFICATIONS

CENTRAL EXCISES

New Delhi, the 8th August 1975

G.S.R. 439(E).—In exercise of the powers conferred by sub-section (2) of Section 1 of the Central Excises and Salt (Amendment) Act 1973 (22 of 1973), the Central Government hereby appoints the 1st October, 1975 as the date on which Section 2 of the said Act shall come into force.

[No. 176/75-CE/F. No. 312/1/75-CX-10]

(1749)

1750 THE GAZETTE OF INDIA KXTRAORDINAB,^ LPAHT H—

G.S.R- 440(E).—In exercise of the powers conferred by Section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), the Central (jovemment hereby make* the following rules, namely :—•

CHAPTER I—Preliminary

1. (1) These rules may be called the Central Excise (Valuation) Rulei, 1975.

(2) They shall come into force on the 1st October, 1975.

2. In these rules, unless the context otherwise requires,

(a) 'Act' means the Central Excises and Salt Act, 1944 (1 of 1944);

(b) 'proper officer' means the proper officer as defined in clause (ii> of rule 2 of

J the Central Excise Rules, 1944;

(d) words and expressions used in these rules and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act.

CHAPTER II—Determination of value

3. The value of any excisable goods shall, for the purposes of clause (b) of sub- jection (1) of Section. 4 of th& Act, be determined by the proper officer in accordance with these rules.

4. The value of the excisable goods ihall be based on the value of such goods sold by the assesse© for delivery at any other time nearest) to the time of the removal or the goods under assessment, subject, if necessary, to such adjustment on account of the difference in the dates of delivery of such good's and of the excisable goods under assessment, as may appear reasonable to the proper officer.

5. Wherei the excisable goods are sold in the circumstances specified in clause (a) of sub-section (1) of Section 4 of the Act except that the price is not the sole consideration, the value of such goods shall be based an the aggregate of such price and the amount of thq money value of any additional consideration flowing directly or indirectly from the buyer to the assetsee.

6. If the value of the excisable goods under assessment cannot be determined under rule 4 or rule 5, and—

(a) where such goods are sold by the assesscc in retail, the value shall be based on the iretail price of such goods reduced by such amount as is necessary and reasonable in the opinion of the proper officer to arrive nt the price at which the assessee would have sold such goods in the course of wholesale trade to 11 person other than a related person :

Provided that in respect of the excisable goods specified in column 2 of the Schedule appended to these rules, the retail price thereof referred to in that column shall be reduced by the amount determined on the busis of the percentage as specified in the corresponding entry in column 3 of the said Schedule :

Provided further that in determining the amount of reduction or for specifying the percentage, due regard shall be had to the nature of the excisable goods, the trade practice in that commodity and other relevant factors;

(b) where the excisable goods are not sold by the assessec but arc used or consumed by him or on his behalf in the production or manufacture of other articles, the v:ilue shall be biscd—

(i) on the value of the comparable goods ptroduced or manufactured by the assessee or by any other assesses :

Provided that in determining the value under this sub-clause the proper officer shall make such adjustments as appear to him reisonable, taking into

SEC. 3(i)] THE GAZETTE OF INDIA EXTRAORDINARY 1751

consideration all relevant factors and, in particular, the difference, if any, in the material characteristics of the goods to be assessed and of the comparable goods;

(ii) if the value cannot be determined under sub-clause (i), on the cost of production or manufacture, including profits, if any, which the ussessee would have normally earned on the sale of such goods;

(c) where the assesace so arranges that the excisable goods are generally not lold by him in the course of wholesale trade except to or through a related person and the value cannot be determined under clause (iii) of the proviso to clause (a) of sub-section (1) of Section 4 of the Act, value of the good* so sold shall be determined—

(i) in a caso where the assessee sells the goods to a related person who sellt such goods in retail, in the manner specified in clause (a) of thii rule;

(ii) in a case where a related person does not sell the goods but uses or consumes such goods in the production or manufacture of other articles, in the manner specified in clause (b) of this rule;

(iii) in a case where a related person sells the goods in the course of wholesale trade to buyers, other than dealers and related persons, and the class to which such buyers belong is known at the time of removal, on the basis of the price at which the goods are ordinarily sold by the related person to such class of buyers.

7. if the value of excisable goods oannot be determined under the foregoing rules, the proper officer shall deterjnine the value of such goods according to the best of his judgment, and for this purpose he may have regard, among other things, to any ona or more of the methods provided for in the foregoing rules.

THE SCHEDULE

[See Rule 6(a)]

Description of excisable goods

Reduction to be made from the retail price of the goods referred to in column 2.

Item of the first Sche- dule of the Central Excises and Salt Act, 1944

25% of The retail 14-E . .

price.

Patent or Proprietary Medicines in respect of which the retail price is specified in the price list under paragraph 8 of the Drugs (Prices) Control Order, made under section 3 of the Essential Commodities Act, 1955 (10 of 1955).

[No. 177/75-CE/F. No, 312/1/75-CX-10]

J. BANERJEE, Addl. Secy.

1752 THE GAZETTE OF 1NDFA EXTRAORDINARY [PART IT— SKC. 3(1)] THE GAZETTE OF INDIA EXTRAORDINARY 1753 1754 T H fi GAZETTE OF INDIA EXTRAORDINARY [?ART 11—Sue. S(i)J