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2002 (10) TMI 93 - SC - Central ExciseWhether the elements required to be added by the members steel plants, as per the decision of the JPC, are admissible deductions under Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944 i.e. whether they fall within the definition of the term "other taxes"? Whether such addition, which is a compulsory impost, can be considered and be price on which excise duty is payable by the parties? Held that:- In the present case, it has already been held by this Court in Ispat Industries' case [2000 (3) TMI 1069 - Supreme Court of India] that there is no backing of any statutory provision for the creation of these funds. Further it has already been held, and in our view correctly, that these main steel plants were the only member steel plants. The levy was only on them and the fund was created for the utilization by these member steel plants only. Also to be noted that even though the Essential Commodities Act empowers regulation of price, it does not empower imposition of any taxes. The addition of an element to the ex-works price has no statutory backing or force. It is not by the Central Government or the State Government or any local authority. It is a levy by a Committee majority of whose members are representatives of the steel plants. The purpose of creating funds is for the benefit of these member steel plants. Such a levy, even though, it may be compulsory can never be "tax". Principles on which "income" is to be determined under the Income-tax Act cannot apply when determining "value" for purposes of Excise Duty. Under the Income-tax Act, tax is payable on income which reaches the assessee. On the other hand, Section 4 of the said Act shows that excise is payable on the price at which goods are ordinarily sold to the buyer. Thus the Appeals filed by the Revenue are allowed.
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