Compensation for administered-price sales not added to assessable value; Tribunal grants interim stay and waives pre-deposit.

Compensation paid by the Government for losses on SKO sold under administrative price control was treated as not forming part of the assessable value, on the basis of a Board circular stating that the sale price remained governed by the administered control price. The Tribunal noted that the circular covered the valuation dispute for the limited purpose of interim protection and, on that footing, granted unconditional stay. Pre-deposit was waived and recovery of the disputed demand was stayed pending disposal of the appeal.

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Issues: Whether the demand towards inclusion of compensation received from the Government in the assessable value warranted pre-deposit and recovery, and whether interim protection should be granted in view of the Board circular.

Analysis: The dispute concerned the valuation of SKO sold under administrative price control, where the loss suffered by the PSU was reimbursed through the Special Pool of the Ministry of Petroleum and Natural Gas. A Board circular was relied upon to indicate that the sale value remained governed by the administrative control price and that the compensation received from the Government was not required to be added to the assessable value. On that basis, the Tribunal found the issue covered by the circular for the limited purpose of interim relief.

Conclusion: The stay application was allowed unconditionally, pre-deposit was waived, and recovery of the disputed amounts was stayed till disposal of the appeal.

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