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1996 (5) TMI 86 - SC - Central ExciseScope and effect of the Explanation to Section 4(4)((d)(ii) of the Central Excises and Salt Act, 1944 Held that:- A clear distinction has been drawn in the section between the amount of duty leviable and the amount of duty payable. 'Value' will not include the amount of duty of excise which is payable. This amount has to be calculated on the basis of the duty levied under the Act and also after taking into account any relief from duty given by any order or notification issued by the Government. The resultant figure is the amount of duty of excise which is payable and deductible from the wholesale price. There is nothing in the Act to suggest that the `value' has to be calculated by deducting in the first place the tax leviable under the Act, from the wholesale price. Thereafter, a second valuation on the basis of the notification will have to be made. The Explanation clearly states that the duty of excise computed with reference to the prescribed rate in the Schedule will have to be reduced "so as to give full and complete effect to such exemption". If the amount of duty calculated according to the Schedule became smaller by virtue of the notification, then the only way to give full and complete effect to the notification is to take only the smaller amount in reckoning for the purpose of determination of value in Section 4(4)(d)(ii). Whatever may have been the position before the amendment of the Act, in view of the Explanation to clause (d) (ii), the `value' in Section 4(4)(d)(ii) can no longer be computed by reference only to the Act and the Schedule without taking into consideration the exemption notification.
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