9911796707
TMI Blog2000 (2) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... ons claimed by the appellants from the sale price (for the purpose of arriving at the assessable value of the goods under Section 4 of the Central Excise Act) were not correctly made. Demand of over Rs. 5 lakhs related to the deduction towards handling and transportation charges, over Rs. 46 thousand related to interest on security deposits made by the dealers who purchased the goods from the appellants and over Rs.1.9 lakhs related to deduction claimed towards Sales Tax. 2. The demand has been made (under Proviso to Section 11A(1) of the Central Excise Act) for the extended period on the ground of suppression of facts, while filing price list. 3. The appellants have submitted that the handling and transportation charges related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dealer and they had no nexus with the sale price of the goods and that appellants had also mostly returned the deposits or paid interest to the dealers in respect of those deposits. It has, therefore, been contended that the appellant's derived no extra benefit on account of the security deposits, warranting any addition to the sale price. 5. With regard to the demand in respect of amount claimed as deduction towards sales tax the appellants submission is that under Section 4 (4) (d) (ii) of Central Excise Act: - "Value in relation to any excisable goods does not include the amount of the duty of excise, sales tax and other taxes, if any, payable on such goods." Appellants contention is that, for the purpose of deduction towards s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that as the security deposit conferred an additional benefit on the appellants over and above the value of the goods, the impugned order is correct in holding that the normal interest payable on the security deposit should be treated as an additional realization from the sale of the goods and duty demanded on the same. In respect of the deduction towards sales tax, he submitted that in the instant case the assessee was exempt from payment of any sales tax and, therefore, question of deduction on this count did not arise. It was explained that when the goods are exempt from sale tax no sales tax is 'payable' and the provision relating to deduction of sale tax 'payable' did not apply to such a case. The ld. D.R., therefore, submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntemplated in Section 4(4)(d)(ii) would not be permissible
9. The issue raised regarding time bar affects the maintainability of the entire demand. This issue had been raised at the adjudication stage also. However, the impugned order has not examined and given findings on the grounds upon which this objection is raised. Thus, this issue also remains to be considered by the adjudicating authority.
10. In the light of the above discussions, the appeal is disposed of by way of remand to the jurisdictional Commissioner for passing a fresh order after giving the appellants adequate opportunity to present their case. They shall also be given satisfactory access to the records so that they could make effective defence. X X X X Extracts X X X X X X X X Extracts X X X X
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