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TMI Blog2016 (11) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon’ble Supreme Court in the case of Commissioner Vs. Sujata Textile Mills Ltd. [2005 (3) TMI 120 - SUPREME COURT OF INDIA] where it was held that under Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944, the value is not to include the amount of duty of excise, sales tax and other taxes if any payable on goods. Under Section 18 of the Karnataka Sales Tax Act, 1957 a registered dealer h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner (Appeals) has rejected the departmental appeal and upheld the Order-in-Original. Briefly the facts of the present case are that the respondent is a manufacturer of excisable goods i.e. Colour Television receiver under Chapter 85 of CETA, 1985. They filed the price list for clearance of goods claiming certain deductions, abatements one of them being the discount on the turnover tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the cost of the product or the seller has to meet the same out of his profit resulting in the reduction in the profit margin. He further submitted that turnover tax merges with the other costs and it becomes an overhead expense and does not qualify for deduction under Section 4. He also submitted that the learned Commissioner (Appeals) failed to appreciate that as per the provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1944, the value is not to include the amount of duty of excise, sales tax and other taxes if any payable on goods. Under Section 18 of the Karnataka Sales Tax Act, 1957 a registered dealer has to pay a tax known as turnover tax and by virtue of sub-section (3) of Section 18 he is not permitted to pass on that tax to the customer. The question is whether at the time of working out valuation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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