Excise duty deduction under retail price rules extends beyond basic duty to special excise duty.

Under Notification No. 245/87, the deduction from retail price for excise duty was not confined to basic excise duty alone. Reading the notification with Section 4(4)(d)(ii) of the Central Excise Act, 1944, the deductible amount of excise duty payable was treated as including special excise duty under the relevant Finance Act as well. On that construction, the amount to be deducted before applying the prescribed discount covered both duties, and the appeal failed.

---

---

Issues: Whether, while computing the retail price under Notification No. 245/87, the amount of excise duty payable to be deducted includes only basic excise duty or also special excise duty.

Analysis: The notification permitted deduction of the amount of excise duty payable before allowing the prescribed discount from the retail price. The Tribunal applied the earlier view that, reading the notification in the light of Section 4(4)(d)(ii) of the Central Excise Act, 1944, the deductible excise duty was not confined to basic excise duty under the Central Excise Act but also extended to special excise duty under the relevant Finance Act.

Conclusion: The deduction from retail price was not restricted to basic excise duty alone, and special excise duty was also includible for the purpose of the notification. The appeal failed.

---