TMI Blog2019 (5) TMI 1861X X X X Extracts X X X X X X X X Extracts X X X X ..... the aggregate value of the clearances under Notification No.8/2003-CE dated 01.03.2003, the aggregate value has to be calculated after making the necessary deductions of the Sales Tax/Trade Tax/ VAT etc. On a perusal of the assessment order of the Sales Tax Department, it is seen that though the Appellant may not have shown sales tax element/amount separately for the individual invoices, but the fact of the matter is that it has been paying sales tax on all the clearances effected from both the factories. As per the mandate of Section 4 of Central Excise Act, 1944, the amount of the Sales Tax /VAT/Trade tax need to be deducted from the invoice value for computing the transaction value. The Original Adjudicating Authority, therefore, need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 003, the benefit of the exemption Notification shall be applicable to small scale industry only where the aggregate value of the clearances of the excisable goods cleared for home consumption by a manufacturer from one or more factories does not exceed Rupees Four Hundred Lakhs in the preceding Financial Year. The case of the Department is that the value of the clearances made by the Appellant from two factories has exceeded the aggregate value of the clearances of Rupees Four Hundred Lakhs in the Financial Year 2005-2006 and, therefore, the Appellant is not entitled for the benefit of the Notification No.8/2003-CE dated 01.03.2003 and thus evaded Central Excise duty amounting to ₹ 11,16,966/-. Three show cause notices demanding the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner (Appeals) vide Order-in-Appeal No.216-CE/LKO/2010 dated 25.08.2010 rejected the appeal of the appellants. As a result, the Appellant is before us against above-mentioned impugned order-in-appeal. 3. We have heard both the sides and have also perused the record of the appeal. 4. The short question which arises for decision is whether demand of Sales Tax/Trade Tax paid by the Appellant on the clearances effected during the relevant Financial Year need to be deducted while deciding the aggregate value of the clearances during Financial Year 2005-2006 or not. We have perused the relevant Notification as well as Section 4 of the Central Excise Act, 1944. In principle we agree with the submissions made by learned Counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessment order of the Sales Tax Department, it is seen that though the Appellant may not have shown sales tax element/amount separately for the individual invoices, but the fact of the matter is that it has been paying sales tax on all the clearances effected from both the factories. As per the mandate of Section 4 of Central Excise Act, 1944, the amount of the Sales Tax /VAT/Trade tax need to be deducted from the invoice value for computing the transaction value. The Original Adjudicating Authority, therefore, needs to consider the assessment order of the Sales Tax Department for giving the necessary deduction from the aggregate value of the clearances for determining the aggregate value of the clearances as required under provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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