Sales tax retained by seller forms part of assessable value for excise, while duty and interest were sustained.

Sales tax collected from buyers but not remitted to the Sales Tax Department under the West Bengal Sales Tax Act, 1994 was held includible in the assessable value for central excise purposes. Applying its earlier ruling and the Supreme Court's principle, the Tribunal sustained the duty demand and corresponding interest. The penalty was waived because the issue remained disputed.

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Issues: Whether sales tax collected from buyers but not paid to the Sales Tax Authority on account of exemption under the West Bengal Sales Tax Act, 1994 was includible in the assessable value of the goods for central excise purposes, and whether the duty demand, interest, and penalty were sustainable.

Analysis: The Tribunal followed its earlier decision on the same question and applied the Supreme Court's ruling to hold that sales tax collected from buyers but not remitted to the Sales Tax Department forms part of the assessable value. On that basis, the duty demand and the corresponding interest were upheld. The penalty was, however, waived in view of the disputed nature of the issue.

Conclusion: The sales tax amount was correctly included in the assessable value, and the duty and interest demands were sustained. The penalty was waived.

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