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TMI Blog2017 (6) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... charges under the head of "Permissible under Section 4" Transportation, Octroi, and Packing charges from the customers. ii) The Dept allowed deduction of transportation and octroi actually paid and for other collections demanded Central Excise duty. iii) In this regard, show cause notice dt. 12.4.2001 was issued to the appellant. The show cause notice was adjudicated by the Asstt. Commissioner vide order No 108/2005 dt 19.8.2005 confirming demand of Rs. 1,33,165/-. iv) The Appellant went in appeal before the Commissioner (Appeals), who vide the impugned order confirmed the demand alongwith interest and dropped the penalty. v) The appellant is now before the Tribunal against the impugned order in appeal. 3. With the background of above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other taxes, if any, payable on such goods and, subject to such rules as may be made, the trade discount, etc., is also to be allowed as a deduction. 5. A reading of the aforesaid Section clearly indicates that the wholesale price which a charged is deemed to be the value for the purpose of levy of excise duty, but the element of excise duty, sales tax or other taxes which is included in the wholesale price is to be excluded in arriving at the excisable value. This Section has been so construed by this Court in Asstt. Collector of Central Excise and Ors. v. Bata India Ltd., [1996] 4 SCC 563, and it is thus clear that when cum-duty price is charged, then in arriving at the excisable value of the goods the element of duty which is payable h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase could be the entire price inclusive of excise duty because that would be the consideration payable by the purchaser for the sale of the goods. True, the excise duty component of the price would not be an addition to the coffers of the dealer, as it would go to re-imburse him in respect of the excise duty already paid by him on the manufacture of the goods. But even so, it would be part of the 'sale price' because it forms a component of the consideration payable by the purchaser to the dealer. It is only as part of the consideration for the sale of the goods that the amount representing excise duty would be payable by the purchase. There is no other manner of liability, statutory or otherwise, under which the purchaser would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01. The liability of interest against the appellant, therefore, for the period prior to 11.5.2001 cannot be upheld. The Tribunal in the case of Scorpio Engg Pvt Ltd (supra) in this regard, observes as under: "2. This is a Revenue's appeal challenging the order passed by the Tribunal, which has held the demand of interest for the relevant period is unsustainable as he was not liable to pay interest. The dispute pertains to the period between September 1999 to December 2001. The amendment to Section 11AB of the Central Excise Act, 1944 (hereinafter referred to as 'the Act'), introducing sub-section (2) was intended by Finance Act, 2001, which came into effect from 11-5-2001. The liability to pay interest as provided in sub-section (1) of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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