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2014 (9) TMI 942 - CESTAT NEW DELHIDetermination of assessable value - deduction of the sales tax - Assessee not paying sales tax - Held that:- Respondents were enjoying sales tax exemption and as such, were not paying any sales tax to the State Government. However, it is seen that they were still collecting an amount towards sales tax from their customers and at the same time, they were also claiming sales tax deduction for determining the assessable value. When they were collecting an amount towards sales tax from their customers, while they were not under any obligation to pay the same to the State Government and as such, they were not paying any sales tax to the State Government, the amount collected from customers as sales tax has to be treated as part of the transaction value and hence, its deduction would not be admissible. In any case, since the sales tax was not payable in view of the exemption, its deduction would not be admissible in view of the provisions of Section 4(3)(d)(ii) of the Central Excise Act, 1944. Though the Commissioner on this point has given a clear finding that this issue had not been decided by the Asstt. Commissioner while finalizing the provisional assessment but still, he has not confirmed the demand of the differential duty on account of wrong deduction of sales tax for determining the assessable value. - The duty demand for the period from 17-7-1991 to 7-4-1994 (sic), as made in the show cause notice, is, therefore, confirmed and the impugned order to this extent stands modified - Decided in favour of Revenue.
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