ZX (Ayur) Ltd. manufctures herbal toothpastes at its factory located in Mysore. The maximum retail price (MRP) printed on the packet in AP & Tamil Nadu of ₹105, in Karnataka of ₹99, and in other places of ₹111. Abate

As per explanation 2 to section 4A(4) of the Central Excise Act 1944, where more than one MRP is printed on a package, highest of such MRPs shall be taken for valuation. Therefore in the case of ZX (Ayur) Ltd, the MRP for the Toothpaste sold in different states on different rates shall be taken at the highest of all i.e. ₹111/-. Hence the assessable value (70% of MRP) i.e. 70% of ₹111 = ₹77.70 Total units of toothpaste removed from factory = 10,00,000 units Assessable Value = 10,00,000 * 77.70 = ₹7,77,00,000 Rate of Excise duty = 12.50% Excise duty payable (₹7,77,00,000 * 12.50%) = ₹97,12,500