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TMI Blog2002 (5) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... Nair, Member (T)]. Order-in-appeal No. 382/C.E./CHD-II/2001, dated 24-10-2001 of the Commissioner (Appeals), Central Excise, Chandigarh which is impugned in these appeals, related to two issues. One relating to the addition of the amount attributable to purchase tax and the other relating to deduction of sales tax payable from the price of the yarn while fixing its assessable value. The Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the yarn was being assessed to duty on ad valorem basis based on its sale price, the price of cotton or its liability to purchase tax were not relevant for the assessment of yarn. This view is entirely in accordance with Section 4 of the Central Excise Act. Where goods are liable to Central Excise duty based on their value, value shall be deemed to the normal price at which such goods are so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the period 1995-96. The deduction claimed from the sales price for the purpose of fixing assessable value was equal to the sales tax so paid. This amount was, however, refunded to the appellant subsequently by the sales tax authorities. The learned Counsel for the appellant has submitted that in these facts and circumstances, the appellant was right in making the deduction towards sales tax payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Section 4(4)(d)(ii) of the Central Excise Act provides for deduction of sales tax and other taxes "payable" from sale price for arriving at assessable value. In the present case, sales tax was payable by the assessee in 1995-96 and it was actually paid also, its subsequent refund notwithstanding. Therefore, the deduction was rightly claimed and availed of by the appellant in respect of clearance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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