MRPL clarifies on alleged excise duty evasion

Sarkaritel
By Sarkaritel September 21, 2016 09:53

MRPL clarifies on alleged excise duty evasion


Mangaluru. September 21, 2016 :  This is regarding the news item of alleged excise duty evasion by MRPL in certain sections of the media.  MRPL would like to clarify that MRPL has been complying with all the statutory requirements including excise duty payment to the Government as per the relevant statute since inception.

MRPL has been manufacturing the product “Mixed Xylene” since year 2007 and started evacuation of Mixed Xylene in domestic market from November 2008 onwards. MRPL since inception has classified this product under Central Excise Tariff Chapter 29. This was done after deliberations with the Central Excise Authorities. Accordingly, MRPL has from time to time charged and collected from the customers the excise duty at applicable rate and paid the same to the excise department.

Recently a team from Directorate General of Central Excise Intelligence (DGCEI), New Delhi visited MRPL and enquired about the classification of Mixed Xylene.  DGCEI officials have raised the objection that Mixed Xylene should have been classified under Chapter 27 under which duty is 14% instead of Chapter 29 under which duty is 12.5% and thus DGCEI alleged short payment of central excise duty by MRPL.

It is to be understood that the excise duty is recovered from the customers and paid to the Government and MRPL does not lose or gain by either of the duty structure.  Further, this duty is modvatable to the customers also.

Since 2007, MRPL has regularly filed monthly central excise returns wherein Mixed Xylene is classified as intimated to the central excise department on 8th February 2007.  These records have also been audited by central excise department from time to time and at no point of time any objection / observation has been raised regarding Mixed Xylene classification, till now.

MRPL is in touch with the investigating wing of Central Excise & the local Central Excise department on the subject to resolve the matter

Sarkaritel
By Sarkaritel September 21, 2016 09:53