1999 (1) TMI 143 - AT - Central Excise

Summary

Issues:
- Inclusion of administrative charges collected by the State Govt. under U.P. Sheera Niyantran Adhiniyam, 1964 in the assessable value of molasses cleared by the Respondent.
- Interpretation of Section 4(4)(d)(ii) of the Central Excise Act regarding exclusion of duties, taxes, and other charges from assessable value.
- Determining whether administrative charges under U.P. Sheera Niyantran Niyamavali, 1974 constitute "other taxes" under Section 4(4)(d)(ii) of the Act.
- Analysis of the legal interpretation of "tax" and "import" under Article 366(28) of the Constitution of India in relation to administrative charges imposed by State Legislature.

Issue 1:
The Commissioner (Appeals) reversed the order-in-original, stating that administrative charges collected under U.P. Sheera Niyantran Adhiniyam, 1964 are not to be included in the assessable value of molasses. The Revenue appealed, arguing that administrative charges are not akin to "other taxes" under Section 4(4)(d)(ii) of the Central Excise Act.

Issue 2:
The contention revolved around the interpretation of Section 4(4)(d)(ii) of the Central Excise Act, which excludes duties, taxes, and "other taxes" from the assessable value. The Respondents argued that administrative charges are not part of the price but a levy imposed by the State Govt. for supervision and control of molasses, hence falling under the category of "other taxes."

Issue 3:
The Tribunal analyzed the legal definition of "tax" and "import" under Article 366(28) of the Constitution. It was established that the administrative charges levied by the State Govt. under a statute passed by the State Legislature constitute a form of "tax" or "import" as per the constitutional interpretation. Therefore, the administrative charges were deemed to be included within the scope of "other taxes" under Section 4(4)(d)(ii) of the Act.

Judgment:
The Tribunal upheld the order of the Commissioner (Appeals) and dismissed the Revenue's appeal. It was concluded that the administrative charges collected by the State Govt. under U.P. Sheera Niyantran Adhiniyam, 1964 were considered a form of "tax" or "import" falling within the definition of "other taxes" under Section 4(4)(d)(ii) of the Central Excise Act. Consequently, the administrative charges were not to be included in the assessable value of molasses cleared by the Respondent.