Turnover tax excluded from excise value where it formed part of the price structure and was actually payable.

Turnover tax collected in relation to depot sales was held excludible from central excise assessable value because Section 4(3)(d) of the Central Excise Act excludes sales tax and other taxes actually paid or payable on the goods. On the facts found, the turnover tax under the Tamil Nadu Additional Sales Tax Act formed part of the price structure and was not recovered as a separate amount over and above the price. Applying the settled position in earlier authorities, the tax was treated as a permissible deduction, so it could not be added to transaction value and the revenue's demand failed.

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Issues: Whether turnover tax collected by the assessee in relation to depot sales formed part of the assessable value for central excise purposes, or was deductible as a tax actually paid or payable.

Analysis: The definition of transaction value under Section 4(3)(d) of the Central Excise Act, 1944 excludes sales tax and other taxes actually paid or payable on the goods. Turnover tax under the Tamil Nadu Additional Sales Tax Act, 1970 is an additional tax on the sale or purchase of goods and, on the facts found, it was reflected as part of the price and not recovered separately as an additional amount over and above the price. The settled position in the earlier authorities relied upon by the Tribunal supported deduction of such tax where it is part of the price structure and the tax liability has been discharged.

Conclusion: Turnover tax was a permissible deduction and could not be added to the assessable value; the assessee's contention succeeded.

Final Conclusion: The assessee was entitled to deduction of turnover tax from the excisable value, and the revenue's demand failed.

Ratio Decidendi: Taxes actually paid or payable on the goods, including turnover tax that forms part of the price structure, are excludible from transaction value for central excise valuation.

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