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2016 (2) TMI 284 - AT - Central ExciseSales tax permissible for deduction for valuation under Central Excise Law - Held that:- In the present case, we find the whole issue cropped up during the course of scrutiny of purchase invoices by the audit party and certain ledger accounts maintained by the appellants. It is not disputed that the present demand arose because of the difference between the sales tax amount collected by the appellant from the buyer and actually paid to the State Government. This is as per a incentive scheme announced by the State. All these transactions are duly accounted for and maintained. As already stated there is a clear possibility of bonafide doubt regarding the quantum of deduction of sales tax in view of different interpretations prevalent during the time. The Tribunal in the case of Indian Oil Corporation Ltd. vs. CCE, Ahmedabad reported in ( 2013 (9) TMI 310 - CESTAT AHMEDABAD ), in a matter involving Central Excise duty consequent on re-calculation of sales tax, held that the issue involved bonafide dispute as requires interpretation of valuation provisions and no extended period can be invoked. Considering the above discussion, we are of the opinion that while the appellants are liable to pay the Central Excise duty as per the valuation determined in the impugned order the demand for extended period cannot be sustained. Accordingly, the penalty on the appellants is also set aside. As such, the appeal is partly allowed in the above terms.
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