Assessable value for the purposes of levy of cess on motor vechicles - Whether it should be on ex-factory wholesale price as per Section 4 or should include the element of excise duty also - Point regarding - Central Excise - 262/1/88-CX.8

Assessable value for the purposes of levy of cess on motor vechicles - Whether it should be on ex-factory wholesale price as per Section 4 or should include the element of excise duty also - Point regarding F. No. 262/1/88-CX.8 Dated 15-1-1988 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Assessable value for the purposes of levy of cess on motor vechicles - Whether it should be on ex-factory wholesale price as per Section 4 or should include the element of excise duty also - Point regarding. I am directed to invite your attention to the Point No. 7 of the minutes of the meeting of the Collectors of Central Excise East Zone held at Patna on 27-28th of October, 1987. It was observed therein that the CEGAT in the case of TELCO by its order dated 4-6-1987 had held that the assessable value for the purposes of levy of cess on automobiles should be as per Section 4 of the Central Excise Salt Act, 1944. The department has gone up in appeal against the aforesaid judgment, Board has therefore decided that pending the decision in appeal, cess should be levied on the basis of value inclusive of excise duty. Demands if not already issued in this connection may be raised immediately to keep the matter alive.