Finmin panel to calm excise over-reach fears
Upholding the view of tax authorities, the court held that Fiat sold the car below production cost on extra-commercial considerations of gaining greater market share and building a brand value and therefore, the discounted price was unacceptable as the transaction value. The tax department had demanded excise duty from Fiat on the cost of production plus reasonable profits.
Central Board of Excise and Customs (CBEC) chairperson Praveen Mahajan told industry executives on Tuesday that the revenue department will try to address apprehensions of companies that keep initial prices below cost to reach maximum customers. Fiat had under-priced its Uno model to beat competition from Maruti. Mahajan, however, denied that the apex court’s interpretation is anything new. “They have said nothing new. Despite that, seeing the concern of the industry, the revenue secretary and we all at the CBEC have decided that in the month of April, we will set up a committee which will actually see that the concerns of the industry and the SC judgment can be both aligned and there is no mismatch of any kind,” Mahajan said. “If there
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