Exclusion of levies collected by Joint Plant Committee (JPC) from integrated steel plants from the assessable value of steel products under Section 4(4)(d)(ii) of the Central Excises & Salt Act, 1944 - Central Excise - 39/39/94-CX

Exclusion of levies collected by Joint Plant Committee (JPC) from integrated steel plants from the assessable value of steel products under Section 4(4)(d)(ii) of the Central Excises Salt Act, 1944 Circular No. 39/39/94-CX Dated 27-5-1994 [From F. No. 6/7/93-CX.1] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Exclusion of levies collected by Joint Plant Committee (JPC) from integrated steel plants from the assessable value of steel products under Section 4(4)(d)(ii) of the Central Excises Salt Act, 1944. I am directed to say that a reference has been received from Secretary (Steel) claiming that the levies made by Joint Plant Committee (JPC), a statutory body constituted by the Central Government, be considered as 'other taxes' for the purpose of deduction from assessable value under Section 4(4)(d)(ii) of the Central Excises Salt Act, 1944. 2. The levies in question are as follows : (i) Steel Development Fund (SDF) Rs. 350 to Rs. 500 per tonne (ii) Engineering Goods Export Assistance Fund (EGEAF)   Rs. 300 per tonne on steel. tonne on pig Rs. 113 per iron (iii) JPC Cess Rs. 3 per tonne SDF is collected for the development and modernisation of steel industry and is said to be under the control and management of SDF Managing Committee headed by Secretary (Steel) EGEAF is collected and passed on to the EEPC under the Ministry of Commerce who compensate the engineering goods exporters the difference between the domestic price and the international price of steel. The JPC Cess is collected and used by JPC for meeting its administrative expenses. 3. The matter was examined in consultation with the Ministry of Law. Copy of Law Ministry's advice is enclosed. 4. Taking the Law Ministry's view into account, it has been decided not to accept the views of the Ministry of Steel and hence the above said levies cannot be excluded as 'other taxes' to arrive at the assessable value for excise purposes. Appropriate follow-up action may be taken accordingly. 5. In view of the above advice, Chairman has desired to check up such instances where other similar cesses are levied to ensure that inadmissible deductions for assessable value are not made. You are requested to send an early report as to whether there are any such cases. 6. Report of action taken in terms of para 4 and 5 may be sent to the Board.