valution under central ecxise, Central Excise

[MOHAMED RAFIQ]

whether royalty paid to state govt.for extraction of ,minerals is a statutory levy or tax.if so,while calculating excisable value the value of royalty canbe excluded

Posts / Replies

[NEERAJ KUMAR, RANCHI]

Yes, value of royalty should be excluded while calculating total assessable value. Excise duty is paya ble excluding royalty.

[vijay kumar]

As per Black's Law Dictionary, Royalty is compensation paid for use of natural resources. Hence it doesn't seem to be a tax to get exclusion in terms of Section 4 of the Central excise act under the definition of "transaction value". Accordingly, no deduction would be admissible while computation of  the AV for  payment of excise duty.