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TMI Blog1992 (9) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on behalf of the appellants the learned advocate Shri R.G. Seth stated that the basic issue in the impugned order pertains to the abatement of turnover tax while determining the assessable value under Section 4 of the Central Excises and Salt Act, 1944. He added that the appellants claim for abatement of turnover tax was rejected by the lower authority not- withstanding the fact that the law on the subject was well settled in view of the decisions of the Hon ble Supreme Court of India. He submitted that as far as abatement of turnover tax is concerned even after the decision of the Supreme Court in the case of Assistant Collector of Central Excise v. Madras Rubber Factory reported in 1987 (27) E.L.T. 553, the decision of the Supreme Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rayer for unconditional stay. He, however, stated that he did not have any objection as regards the appellants request for simultaneous disposal both the stay application and the appeal. 3. We have examined the records of the case and considered the submissions made by both sides. Briefly stated the facts of the case are that the appellants filed Price Lists No. 1/88, 2/88, 4/88 and 1/89 to 11/89 effective from the dates mentioned in the respective price lists, for approval by the proper officer. In these price lists deduction from the wholesale price of the goods on account of average freight, additional sales tax, turnover tax, transit insurance and octroi were claimed. The Assistant Collector issued a show cause notice requiring the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay the tax from collecting any amount by way of such turnover tax. 4. Having regard to the case law cited by the appellants we allow the application for stay of the recovery of the entire amount demanded as differential duty in terms of the impugned order. Since both sides have requested for hearing of the appeal, we proceed to decide the appeal on merits. 5. It is seen that in the case of Associated Pigments Ltd. v. Collector of Central Excise reported in 1989 (40) E.L.T. 186 on the ratio of the decision of the Hon ble Supreme Court in the case of Union of India and Others v. Bombay Tyres International Pvt. Ltd. (supra), the Tribunal had held that taxes such turnover tax which are deductible under Section 4 of the assessable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost of transportation of the excisable article from the factory gate of the place or places where it is sold. The cost of transportation will include the cost of insurance on the freight even where such freight is charged on average basis so that the wholesale cash price from any place or places outside the factory gate is the same as the wholesale cash price has to be deducted in order to arrive at the real wholesale cash price at the factory gate and no Excise duty can be charged on it . In the clarificatory order in the case of Union of India and Others v. Bombay Tyres International Pvt. Ltd. reported in 1984 (17) E.L.T. 329 (S.C.) the Hon ble Supreme Court had held that the taxes which are permissible to be deducted under Section 4 from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Associated Pigments Ltd. v. Collector of Central Excise reported in 1989 (40) E.L.T. 186 (Tribunal) has held as under :- In the case of Union of India and Others v. Bombay Tyres International Ltd. the Supreme Court has held that the taxes which are permissible to be deducted from the assessable value cannot be disallowed even if they are paid periodically to the relevant taxing authorities in accordance with the relevant taxing provisions of taxing statutes/rules. The taxes are additional sales tax, surcharge on sales tax, turnover tax. The Assistant Collector is directed to allow cost of transportation and delivery charges, turnover tax and octroi duty as deductions from assessable value . 4. In view of the above obse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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