TMI Blog1978 (8) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ad valorem. Under clause 8 of the item the methodology for determination of the assessable value of the medicines has been prescribed. This has been done by means of the Notification No. 161/66-C.Ex., dated 8-10-1966 as amended by Notifications No. 14/68-C.Ex., dated 3-2-1968 and No. 147/70-C. Ex., dated 25-7-1970 by the Government of India, Ministry of Finance (Department of Revenue and Insurance). The notification says that the Central Government has exempted patent and proprietary medicines falling under this item from so much of the duty of excise leviable thereon as is in excess of the duty calculated on the basis of (i)............., (ii) the value arrived at after allowing a discount of 25 per cent. on the price specified in the pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d this court under Art. 226 of the Constitution. 4. Mr. A.S. Raman, learned counsel for the petitioner, states that clause 2 of the notification does not make any reference to a piror discount being made of excise duty or element of excise duty and thereafter a discount of 25 per cent. being allowed on the price specified in the price list. He further submits that the explanation, on which the respondent places reliance, cannot detract the direction contained in clause 2 of the notification because the words used in the explanation are limited in their operation. He points out that the words used are 'the element of excise duty, if any, added to the price', and therefore the Department cannot proceed on the assumption that excise duty is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tentions of Mr. Raman and points out that having regard to the terms in which the explanation has been worded in the notification, there can be no ambiguity in the matter and the only course that has to be followed is to first eliminate the element of excise duty from the price of the medicine and thereafter allow a discount of 25 per cent. on the net price arrived at after deduction of excise duty. He also submits that the words used are not excise duty but 'element of excise duty' and therefore, it is not necessary that the excise duty must be separately shown and added to the retail price of the medicine before deductions can be made on the excise duty. 7. On a consideration of the matter. I am unable to accept the contentions of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manner in which the deductions are to be made in pursuance of the notification in question. In that view of the matter, the respondent's stand has to be upheld and the petitioner's contentions have to be rejected. 8. Another contention raised on behalf of the petitioner is that deduction should be made towards payment of sales tax, but the respondent has failed to make any such deduction. This contention is capable of acceptance if the petitioner has actually paid sales tax. But, it is admitted by him that sales tax has not been separately charged. Such being the case the petitioner is not entitled to ask for deduction of sales tax not paid by him. 9. For the aforesaid reasons, the writ petition fails and accordingly will stand dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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