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2018 (12) TMI 14 - AT - Central ExciseValuation - Deduction of the sale tax - related party transaction or not - appellant/assessee were removing the aerated waters exclusively to their marketing company i.e. M/s Dhillon Kool Drinks, Babarpur/Delhi for further distribution and sale to various sub distributors - applicability of Section 4 of the Central Excise Act - Held that:- The adjudicating authority has allowed deduction on account of sales tax on aerated water sold in bottles but failed to give the deduction on account of sales tax on bag-in-box. In fact, the same treatment is required to be given for the sale of bag-in-box, therefore, on account of sales tax which is of inclusive of the price, the appellant/assessee is entitled for deduction from the selling price of aerated water in bottles as well as bag-in-box. On account of sales tax, the deduction from the assessable value is allowed in terms of Section 4 of the Central Excise Act, 1944 - demand to that extent is set aside. The demand for the extended period is also set aside - it is the issue of valuation of goods and no penalty is imposable on the appellant. Appeal allowed - decided in favor of appellant.
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