9911796707
TMI Blog1999 (10) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... arious deductions like turnover tax, cash discount, trade discount and dealer discount, octroi, etc. The discounts so claimed by the manufacturer were not allowed by the department. Notice dated 1-12-1995 was issued to the manufacturer requiring them to show cause as to why various deductions claimed as per the price list should not be disallowed. Those deductions included trade discount and cash discount; freight and insurance; transport bills and octroi; brokerage; selling commission; interest on inventories; depot expenses; turnover tax and Textile Committee Cess and Central Excise duty, other than actuals paid at the time of clearance of goods. Adjudicating authority by Order-in-Original No. 124/96, dated 29-3-1996 allowed deductions cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Appeal Nos. E/958/98-A and E/1025-1034/98-A. This Tribunal accepted the contention of the appellant on the deductibility of turnover tax and held that turnover tax is to be deducted in determining the assessable value. On the issue of deductibility of the trade discount, matter was remitted to the adjudicating authority to enter a finding as to whether trade discount as claimed by the manufacturer was known to the trade before clearance. The above view taken by the Tribunal in Final Order Nos. 849-859/99-A, dated 11-6-1999 was placed before us in support of the appellant's contention that they are entitled to deduct the turnover tax from the price for arriving at the assessable value for the purpose of charging duty. Ld. Counsel also sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, should be allowed even if they are paid periodically to the relevant taxing authorities in accordance with the relevant provisions of taxing statutes/rules. Section 4(4)(d)(ii) of the Central Excise Act, 1944, inter alia, states that "Value, in relation to any excisable goods does not include the amount of the duty of excise, sales tax and other taxes, if any, payable on such goods". This Section makes it clear that in computing the value of excisable goods, sales tax and other taxes, payable on such goods must be excluded. This aspect has been recognised by their Lordships in the first sentence of the paragraph quoted above. The turnover tax payable by the manufacturer should be allowed to be deducted from the sale price. In the second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been collected from the buyers, assessee would have paid the same only from the price collected from the buyers. Therefore, amount of turnover tax and octroi paid by the assessee has to be deducted from the price in order to arrive at the assessable value, in cases where the assessee did not collect these dues from the buyers. In fact the question of deduction would arise only in cases where the appellant did not collect these dues over and above the price. Where it is collected over and above the prices the question of deducting these dues from the price would not arise and nor would the question of addition of these dues to the price to arrive at the assessable value would arise. The lower authorities were, therefore in error in disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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