Assessable value computation excludes input sales tax set-off from the deduction of sales tax in cum-duty price.

For assessable value under Section 4 of the Central Excise Act, the deductible sales tax from cum-duty price is the tax payable at the effective rate, without reducing it by any sales tax set-off available on inputs. Applying Board Circular No. 2/94-CX and the Attorney General's view, the Tribunal treated the input set-off as irrelevant to the deduction calculation. The result was that the set-off amount could not be added back or otherwise factored into the sales tax deduction from the cum-duty price while determining assessable value.

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Issues: Whether, while determining the assessable value of excisable goods under Section 4 of the Central Excise Act, 1944, the amount of sales tax set off availed on inputs could be taken into account for reducing the sales tax payable from the cum-duty price.

Analysis: The Tribunal applied Board's Circular No. 2/94-CX. dated 11-1-94, which adopted the Attorney General's view that the deductible amount is the sales tax payable at the effective rate, without adjusting the set off available in respect of inputs. On that basis, the set off received from the Sales Tax authorities was held to be irrelevant for computing the deduction from the cum-duty price.

Conclusion: The issue was decided in favour of the assessee, and the set-off amount could not be included while granting deduction of sales tax payable at the effective rate from the cum-duty price for determining assessable value.

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