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2014 (2) TMI 993 - GUJARAT HIGH COURTDeduction u/s 80HHC of the Act - Whether the Tribunal was right in law in holding that the components of sales tax and central excise do not form part of the sale proceeds for the purpose of Section 80HHC of the Act despite insertion of Section 145A Held that:- The decision in CIT v. Lakshmi Machine Works [2007 (4) TMI 202 - SUPREME Court] and Commissioner of Income Tax vs. Shiva Tex Yarn Ltd. [2012 (9) TMI 658 - SUPREME COURT] followed - sales tax and excise duty do not have any element of "turnover" which is the position even in the case of rent, commission, interest etc. - excise duty and sales tax are indirect taxes - They are recovered by the assessee on behalf of the Government - if they are made relatable to exports, the formula under Section 80HHC would become unworkable - The view which is taken in the light of amendments made to Section 80HHC from time to time the Tribunal has not committed any error in holding that the components of sales tax and central excise do not form part of sale proceeds for the purpose of Section 80HHC of the Act despite insertion of Section 145 A of the Act Decided against Revenue.
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