TaxTMI Login
🎉 Festive Offer: Flat 15% off on all plans! →⚡ Don’t Miss Out: Limited-Time Offer →
TaxTMI 
Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Dispute resolved in favor of appellants over assessable value deduction under Central Excise Act</h1> <h3>IN RE : M/s. MADRAS RUBBER FACTORY, LIMITED, MADRAS</h3> The appeal involved a dispute over the assessable value of products under the Central Excise Act. The Appellate Collector ruled in favor of the ... - Issues:Interpretation of Section 4 of the Central Excise Act regarding deduction of post-manufacturing expenses from assessable value.Analysis:The appeal involved a dispute regarding the assessable value of products manufactured by M/s. Madras Rubber Factory Limited. The Assistant Collector had directed that the assessable value should be based on the total sale price less only transportation charges and duty element. The appellants argued that post-manufacturing expenses should also be deducted to arrive at the normal price, citing Supreme Court and High Court judgments to support their contention.The Appellate Collector analyzed the contentions of the appellants, noting that the products were sold at various depots to consumers according to their requirements, with uniform pricing inclusive of post-manufacturing expenses. The appellants claimed that the prices quoted were retail prices and requested approval under Rule 6 of the Central Excise (Valuation) Rules, 1975. The Appellate Collector found no evidence to reject the appellants' claim that the prices were retail.The Assistant Collector argued that sales to certain consumers should be deemed wholesale transactions based on the definition in the Central Excises Act. However, the Appellate Collector disagreed, stating that the uniform pricing to all consumers, including industrial consumers, indicated retail pricing. Therefore, Rule 6(a) of the Valuation Rules applied, and the normal price had to be determined accordingly.Referring to a similar case in Kerala and a judgment of the Madras High Court, the Appellate Collector concluded that post-manufacturing expenses should be allowed as deductions in this case. Citing precedents and the jurisdiction of the Madras High Court, the Appellate Collector directed the lower authority to verify and fix the assessable value in accordance with Rule 6(a) of the Valuation Rules. The appeal was disposed of in favor of the appellants.
TaxTMI 
