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2024 (2) TMI 499 - AT - Central ExciseDetermination/calculation of deduction - deduction on equalized basis - price declaration in terms of Rule 173C of erstwhile Central Excise Rules, 1944 - HELD THAT:- This Bench of the Tribunal and also the Principal Bench, New Delhi have decided the issue in favour of the appellants in their own case. Commissioner (Appeals) vide OIA dated 26.11.2015 has relied upon CBEC Circular, No. 20/90-CX-1 dated 20.08.1990, which clarified that Assessees who intend to deduct equalized sales taxes, octroi etc. from the cum duty price may be permitted to do so on the condition that such deductions are substantiated, from time to time, on the basis of information available in records regarding the actual amounts paid as taxes, octroi, etc. As long as the assessable values claimed are correct and are not manipulated in order to avoid duty, it is felt that the assessing authorities may allow deductions on account of sales tax, octroi etc. The Hon’ble Apex Court in the case of Grasim Industries Ltd. [2018 (5) TMI 915 - SUPREME COURT] has validated the above circular even in the new valuation regime and observed the measure of the levy contemplated in Section 4 of the Act will not be controlled by the nature of the levy. So long a reasonable nexus is discernible between the measure and the nature of the levy both Section 3 and 4 would operate in their respective fields. Both the appeals are allowed.
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