2015 (7) TMI 134 - SCH - Central Excise

Valuation of goods - Inclusion of sales tax collected in the assessable value of goods - Whether the assessee was entitled to claim deduction under Section 4(4)(d)(ii) of the Act in respect of full amount of sales tax payable at the rate of 2% - Supreme Court dismissed the review petition filed by the assessee against the decision 2014 (3) TMI 42 - SUPREME COURT , whrein it was held that Unless the sales tax is actually paid to the Sales Tax Department of the State Government, no benefit towards excise duty can be given under the concept of transaction value under Section 4(4)(d), for it is not excludible. As is seen from the facts, 25% of the sales tax collected has been paid to the State exchequer by way of deposit. The rest of the amount has been retained by the assessee. That has to be treated as the price of the goods under the basic fundamental conception of transaction value as substituted with effect from 1.7.2000. Therefore, the assessee is bound to pay the excise duty on the said sum after the amended provision had brought on the statute book.

Summary

The Supreme Court rejected applications for open hearing of Review Petitions, stating that the order being reviewed does not have any apparent errors. The Review Petitions were dismissed.