Econ Antri Ltd. Vs. Commissioner of Central Excise

Econ Antri Ltd. vs Commissioner of Central Excise

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided May 30, 2002

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Citation: sooperkanoon.com/28309
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Judge: K Usha, N T C.N.B.
Decided On: May 30, 2002
Subject: Excise

Case Summary

AI-generated summary - not the official court judgment text.

Excise

Key legal issue: Excise

Parties & Advocates

Appellant / Petitioner

Econ Antri Ltd.

Respondent

Commissioner of Central Excise

Legal References

Reported In: (2002)LC408Tri(Delhi)

Excerpt

.....of the following amounts is eligible for deduction from the cum-duty price of excisable goods for determining the assessable value under section 4 of the central excise act: (i) amount of sales tax payable at tariff rate, ignoring the effective rate of sales tax payable on finished goods as well as set off of taxes paid on inputs; (ii) amount of sales tax payable at effective rate, ignoring the amount of set off available in respect of inputs; (iii) net amount of sales tax payable at effective rate after adjusting the set off availed of in respect of inputs. 3. the attorney general of india has confirmed the view expressed in sub-para (ii) above i.e., 'amount of sales tax payable at effective rate, ignoring the amount of set off available in respect of inputs, is eligible for deduction from the cum-duty price of excisable goods for determining the assessable value under section 4 of the central excise act'." 2. we are convinced that the issue raised in this appeal is covered in favour of the assessee by the above circular. the amount of set off received from the sales tax authorities cannot be taken into consideration while granting deduction of the sales tax payable at effective rate form the cum-duty price of excisable goods for determining the assessable value.3. in the result, the order impugned is set aside and the appeal stands allowed.

Full Judgment

1. When this stay petition came up for hearing it was agreed by both sides that the appeal itself could be disposed of.

2. We heard both sides on merits. The learned Counsel for the appellant places reliance on the Board's Circular No. 2/94-CX,, dated 11-1-94 in support of the contention that the amount of set off received in respect of the inputs cannot be taken into consideration while granting deduction of the sales tax payable, from the sale price. The circular refers to the advice of the Attorney General of India on this issue in the following manner :- "2. Board has sought the advice of the Attorney General of India as to which of the following amounts is eligible for deduction from the cum-duty price of excisable goods for determining the assessable value under Section 4 of the Central Excise Act: (i) Amount of sales tax payable at tariff rate, ignoring the effective rate of sales tax payable on finished goods as well as set off of taxes paid on inputs; (ii) Amount of sales tax payable at effective rate, ignoring the amount of set off available in respect of inputs; (iii) Net amount of sales tax payable at effective rate after adjusting the set off availed of in respect of inputs.

3. The Attorney General of India has confirmed the view expressed in sub-para (ii) above i.e., 'amount of sales tax payable at effective rate, ignoring the amount of set off available in respect of inputs, is eligible for deduction from the cum-duty price of excisable goods for determining the assessable value under Section 4 of the Central Excise Act'." 2. We are convinced that the issue raised in this appeal is covered in favour of the assessee by the above circular. The amount of set off received from the Sales Tax authorities cannot be taken into consideration while granting deduction of the sales tax payable at effective rate form the cum-duty price of excisable goods for determining the assessable value.

3. In the result, the order impugned is set aside and the appeal stands allowed.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Econ Antri Ltd. vs Commissioner of Central Excise Same Subject Excise Same Judge K Usha, N T C.N.B.