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TMI Blog2022 (6) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... The case of the department is that the TCS collected from the buyer over and above the price of the goods should be included in the transaction value as the same shall be treated as amount of money value of additional consideration and Central Excise duty is required to be paid. Accordingly, a show cause notice was issued which was adjudicated by the adjudicating authority by confirming the demand of duty on the said TCS amount. In appeal, the Learned Commissioner (Appeals) upheld the demand and dismissed the appeal therefore, the present appeal filed by the appellant. 02. Shri. Prakash Shah, Learned Counsel appearing on behalf of the appellant submits that the TCS is not a part and parcel of sale price of the goods which is collected from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc. 206C. (1) Every person being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table below, a sum equal to the percentage specified in column (3) of the said Table of such amount as income tax : TABLE Sl. No. Nature of goods Percentage (1) (2) (3) (i) Alcoholic Liquor for human consumption One per cent (ii) Tendu leaves Five per cent (iii) Timber obtained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the goods referred to in column (2) of the aforesaid Table are to be utilized for the purposes of manufacturing, processing or producing articles or things or for the purposes of generation of power and not for trading purposes." From the pain reading 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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