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TMI Blog2005 (4) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... nt factories. It is the appellants contention that different States charge different rates of sales tax. Since the appellant has to maintain a uniform MRP for a particular product in a particular area the appellant adopts the practice of claiming deduction on account of sales tax paid/payable in terms of Section 4(4)(d)(ii) on equalised basis. Equalisation of sales tax is done by calculating weighted average sales tax at the end of financial year after the accounts were audited. In order to arrive at the weighted average of sales tax, the total amount of sales tax paid by the company as a whole in a financial year is calculated as a percentage of total sales of the company for that financial year. This percentage of weighted average of sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... val of price lists indicating the maximum retail prices in the light of Notification No. 511, dated 25-5-1990 issued by the Ministry of Civil Supplies amending the packaged commodities rules requiring that retail sales price inclusive of all local taxes, i.e. ECP should now be marked on all packed commodities. In order to conform to the amendment that2. had been carried out in the packaged commodities rules requiring the marking of the retail prices inclusive of local taxes, the trade have represented that, to ensure a uniform retail price all over the country, it would be necessary for them to equalise all local taxes, octroi etc. and get the assessable value approved accordingly for the purpose of Central excise levies. As rates of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts paid as taxes, octroi, etc. As long as the assessable values claimed are correct and are not manipulated in order to avoid duty, it is felt that the assessing authorities may allow deductions on account of sales tax, octroi etc. on equalised basis. Any practical difficulties encountered in this regard may be reported to the Board. 4.Field formations and trade interest may be informed suitably. 5.The ld. Advocate argued that this Circular allows deductions on account of sales tax, octroi etc. on equalised basis. Since the goods in question are assessed under Section 4A the provisions of the above-mentioned circular are applicable to their case. He argued that the procedure laid down in the circular is applicable even when a product in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Dongri Village; that the Circular relied upon by the appellant is applicable only when some sales tax is payable; that obviously no sales tax is paid in this case; that the words payable on such goods means that the sales tax should have been paid; that a Central excise officer having jurisdiction over a particular area cannot take a over all picture emerging out of the total operations of a company having several units all over the country and that the differential duty is payable as the appellant has wrongly availed of impermissible deductions towards sales tax and that the circular cited supra does not apply to him. 7.We have examined the rival contentions. We agree with the ld. DR contention that the circular relied upon by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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