2002 (5) TMI 487

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..... Advocate, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - Order-in-appeal No. 382/C.E./CHD-II/2001, dated 24-10-2001 of the Commissioner (Appeals), Central Excise, Chandigarh which is impugned in these appeals, related to two issues. One relating to the addition of the amount attributable to purchase tax and the other relating to deduction of sales tax payable from the price of th .....

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..... he yarn to Central Excise duty, his contention being that since the yarn was being assessed to duty on ad valorem basis based on its sale price, the price of cotton or its liability to purchase tax were not relevant for the assessment of yarn. This view is entirely in accordance with Section 4 of the Central Excise Act. Where goods are liable to Central Excise duty based on their value, value shal .....

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..... roving the exemption, the appellant paid the sales tax during the period 1995-96. The deduction claimed from the sales price for the purpose of fixing assessable value was equal to the sales tax so paid. This amount was, however, refunded to the appellant subsequently by the sales tax authorities. The learned Counsel for the appellant has submitted that in these facts and circumstances, the appell .....

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..... pt from sales tax and no sales tax was actually paid also. 5. Section 4(4)(d)(ii) of the Central Excise Act provides for deduction of sales tax and other taxes "payable" from sale price for arriving at assessable value. In the present case, sales tax was payable by the assessee in 1995-96 and it was actually paid also, its subsequent refund notwithstanding. Therefore, the deduction was right .....

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..... nths, is payable by the assessee. 6. In the light of the above findings, short-levy of Rs. 1,13,571/- is confirmed. Revenue's appeal is allowed to this extent. The assessees' appeal is allowed in its entirety and demand of duty on account of inclusion of purchase tax in the assessable value and penalty imposed are quashed. Both the appeals are disposed of on these terms.
Case laws, Decis .....

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