2011 (7) TMI 698 - AT - Central Excise

CESTAT excludes fees from assessable value in Mumbai valuation dispute

The Appellate Tribunal CESTAT, Mumbai, allowed the appeal in a valuation dispute regarding the inclusion of certain fees in the assessable value of goods. ... Valuation - Whether administrative fee/export fee etc are liable to be included in the assessable value - Apex court in the case of Commissioner vs Kisan Sahakari Chini Mills Ltd (1999 -TMI - 90836 - CEGAT, NEW DELHI), wherein it was held to the effect that the aforesaid fees fell within the ambit of the expression 'other taxes' figuring in the text of Section 4 (4) (d) (ii) of the Central Excise Act and hence liable to be excluded from the assessable value of the goods - Decided in favor of the assessee Issues: Valuation dispute regarding inclusion of certain fees in assessable value of goods.The judgment by the Appellate Tribunal CESTAT, Mumbai, involved an appeal against a demand of duty and penalty. Despite the absence of representation for the appellant, the Tribunal proceeded with the case. The issue at hand was a valuation dispute concerning whether amounts collected by the assessee from customers as administrative fee/export fee should be included in the assessable value of goods cleared during a specific period. The appellant relied on a previous Tribunal decision in Commissioner vs Kisan Sahkari Chini Mills Ltd, where it was held that such fees fell within the ambit of 'other taxes' and should be excluded from the assessable value. The learned JDR acknowledged that the Tribunal's decision was affirmed by the Supreme Court, settling the issue against the Revenue. Consequently, the Tribunal set aside the impugned order and allowed the appeal, as the issue had been conclusively settled by the apex court in favor of the assessee.