TMI Blog2008 (2) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... n by them during the period April, 1998 to Feb, 1999. Scrutiny of the price list revealed that the respondents have claimed deduction in respect of turnover tax. The Jurisdictional Superintendent enquired from the respondents from time to time as to whether turnover tax has been actually paid to the relevant authorities or not and to provide evidence to that effect but the respondents did not furnish the relevant information. In view of the same they were issued show cause notices seeking to demand duty totally amounting to Rs. 33,07,580.67 for the period April, 1998 to Feb., 99 in respect of the deduction of turnover tax claimed by them from the price for which they could not produce evidence of having paid the same to the relevant authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also upheld by the Commissioner (Appeals) on appeal being filed by the Revenue. It is against this order that the Revenue has come up in appeal. 3. The Revenue in its appeal has contended that tenor of the Supreme Court decision in the case of Baroda Electric Meters Ltd. is to allow marginal variation in deductions claimed but it does not give blanket approval for claiming deduction for taxes payable which is totally out of sorts with the actual taxed paid. Besides, the Supreme Court judgment relates to deductions on account of freight and not to deductions on account of taxes payable to the Government. A person cannot be allowed to make profit under the guise of taxes payable. Reference was invited to the Supreme Court decision in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. v. Collector of Central Excise, Pune - 1994 (71) E.L.T. 1053 (Tri.) where a similar view has been taken. 5. We have considered the submission. We find that it is an admitted fact that the respondents has not paid Rs. 18,08,804/- during the period April, 1998 to Feb., 99 as turnover tax to the concerned authority. Provisions relating to the deductions of tax from the assessable value are contained in Section 4(4)(d)(ii) which read as under - (d) Value" in relation to any excisable goods - (ii) Does not include the amount of the duty of excise, sales tax and other taxes, if any, payable on such goods and, subject to such rules as may be made the trade discount.......... The above provision makes it very clear that what can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Electronics and Electrical Ltd. referred to by the respondents supports the Revenue rather than the respondents as in para 36 while referring to the Apex Court decision in the case of Bombay Tyres International Ltd. - 1984 (17) E.L.T. 329 (S.C.), the observation of Supreme Court have been reproduced as under- Additional sales tax, surcharge on sales tax and turnover tax should be allowed to be deducted from the sale price in order to arrive at the assessable value and also octroi where payable/paid by the manufacturer. These taxes if proved to have been paid should be allowed, even if they are paid periodically to the relevant taxing authority in accordance with the relevant provisions of taxing statutes/rules . Therefore this decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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