TMI Blog2022 (6) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... value - it is clear that any additional amount if it is flowing from the buyer to the assesse directly or indirectly the same is includable in the assessable value meaning thereby any amount which is coming from the buyer and retained by the appellant alone will be includable in the assessable value. In the present case the TCS is collected not as a additional consideration but explicitly as tax and same is deposited to the income tax department, therefore, it cannot be said that the amount of TCS belongs to the appellant - the amount of TCS cannot be considered as additional consideration flowing from the buyer to the appellant accordingly, the same is not includable in the assessable value for charging Excise Duty - appeal allowed - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome tax department, therefore the said amount was neither returned by the appellant nor earned by them. The appellant is only complying the provision of the income tax without any gain out of the TCS collected and paid to the department, therefore, the same cannot be considered as a part and parcel of the assessable value. 2.1 He also submits that the adjudicating authority in show cause notice invoked Rule 6 of the Central Excise Valuation Rules, for demand of duty. He submits that firstly, the TCS is a tax which has to be deducted from the total value of the goods. Secondly, in terms of Rule 6 any amount which is additional consideration flowing from the buyer to the assesse can only be included. In the present case the amount of TCS i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion One per cent (ii) Tendu leaves Five per cent (iii) Timber obtained under a forest lease Two and one-half per cent (iv) Timber obtained by any mode other than under a forest lease Two and one-half per cent (v) Any other forest produce not being timber or tendu leaves Two and one-half per cent (vi) Scrap One per cent: (vii) Minerals, being coal or lignite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eading of the above Section it is clear that the amount collected as TCS has nothing to do with the price of the goods but it is a tax collected from the buyer of the scrap and the same is deposited in the income tax department, therefore, the amount collected as TCS is a tax and in terms of Section 4, the tax is not includable in the assessable value. Moreover, as regard, invocation of Rule 6 of Central Excise Valuation Rules, 2000, the same is produced below:- Explanation 1 - For removal of doubts, it is hereby clarified that the value, apportioned as appropriate, of the following goods and services, whether supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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