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2019 (5) TMI 1861 - AT - Central ExciseSSI Exemption - threshold limit of aggregate value of clearances - inclusion/deduction of Sales Tax/Trade Tax paid by the Appellant on the clearances effected during the relevant Financial Year - benefit of N/N. 8/2003-CE dated 01.03.2003 denied - HELD THAT:- While computing the aggregate value of the clearance in a particular Financial Year, the value has to be determined as provided under Section 4 of the Central Excise Act, 1944. This provides that the tax element of taxes such as Sales Tax/Trade Tax/VAT need to be deducted while determining the transaction value of the product. Thus, for determination of the aggregate value of the clearances under Notification No.8/2003-CE dated 01.03.2003, the aggregate value has to be calculated after making the necessary deductions of the Sales Tax/Trade Tax/ VAT etc. On a perusal of the assessment order of the Sales Tax Department, it is seen that though the Appellant may not have shown sales tax element/amount separately for the individual invoices, but the fact of the matter is that it has been paying sales tax on all the clearances effected from both the factories. As per the mandate of Section 4 of Central Excise Act, 1944, the amount of the Sales Tax /VAT/Trade tax need to be deducted from the invoice value for computing the transaction value. The Original Adjudicating Authority, therefore, needs to consider the assessment order of the Sales Tax Department for giving the necessary deduction from the aggregate value of the clearances for determining the aggregate value of the clearances as required under proviso (VII) of Para-2 of Notification No.8/2003-CE dated 01.03.2003. The matter is therefore remanded to the Original Adjudicating Authority to consider all the facts including the assessment order of the Sales Tax Department for the Financial Year 2005-2006 and re-determine the aggregate value of the clearances of the Appellant and, accordingly, decide whether the Appellant is entitled for benefit of Notification No.8/2003-CE dated 01.03.2003 or not - Appeal allowed by way of remand.
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