The domestic manufacturers of refrigerators and washing machines yesterday made presentations before the chairman of Central Board of Excise and Customs (CBEC) suggesting that excise should be assessed on 50 per cent of the maximum retail prices (MRP) of these products.
While revenue officials stated that this would be too high an abatement and might not be accepted, the CBEC asked the delegation to submit the details of manufacturing costs and sales figures of the various models that are marketed by the different manufacturers latest by Friday.
According to revenue department statistics, the average assessable value declared by different manufacturers in the refrigerator segment currently range between 68 to 70 per cent of the MRP, while that for washing machines is about 55-56 per cent of the prevailing MRP.
The delegation, which met the CBEC chairman under the aegis of Consumer Electronics and Televisions Manufacturers Association (Cetma), however, did not have a representation from BPL, one of the largest domestic players in the consumer electronics segment.
Meanwhile, the Cetma delegation also petitioned the CBEC yesterday to change the excise norm for assessable value of colour televisions from 70 per cent to 65 per cent of the MRP.
In a notification issued last week, the government allowed the CTV producers an abatement of 30 per cent on the MRP for purpose of calculating the assessable value for levying the 18 per cent excise duty.
We have asked the CBEC to give an abatement of at least 35 per cent, instead of the 30 per cent allowed under the new norm, on CTVs. This is the minimum that should be allowed, based on the existing conditions and rates of sales tax and octroi prevailing in different states said Cetma president K S Raman.
In its meeting, the CBEC had assured the delegation that its suggestions would be taken into consideration while taking a final decision on the extent of MRP to be calculated to arrive at assessable rates for excise duties.
Cetma, which is currently preparing the detailed report of manufacturing and marketing statistics of the various companies as directed by CBEC, has already obtained the required feedback from Videocon and Onida.
But it is still awaiting details from Godrej-GE Appliances and Whirlpool of India before finalising their report. The response from these two companies are expected today.
