Appellants entitled to abate equalized sales tax under Central Excise Act Section 4.

The Tribunal held that the appellants are entitled to claim the abatement of equalized sales tax from the transaction value under Section 4 of the Central Excise Act. Consequently, both impugned orders were set aside, and both appeals were allowed with consequential relief. The stay applications were also disposed of.

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Issues Involved:
Appellants' eligibility for abatement of equalized/averaged sales tax from transaction value under Section 4 of the Central Excise Act.

Detailed Analysis:

Issue 1: Eligibility for abatement of equalized/averaged sales tax
The judgment dealt with the issue of whether the appellants are eligible for abatement of equalized/averaged sales tax from the transaction value under Section 4 of the Central Excise Act. The Revenue contended that the appellants should claim sales tax abatement on an actual basis. However, the Tribunal, in the appellant's own case, held that such deduction is permissible. The Tribunal referred to various previous decisions, including one in the case of Zandu Pharmaceuticals Vs CCE Thane-II, where it was held that equalized sales tax can be allowed to be deducted. The Tribunal further reiterated its stance in subsequent orders, emphasizing that the deduction towards additional sales tax and octroi can be allowed on an equalized basis, provided the expenses are segregated exclusively for excisable goods cleared by the appellants for the respective year. The Tribunal, following precedent decisions, concluded that the appellants are entitled to claim the deduction of equalized sales tax from the transaction value to determine the assessable value.

Conclusion:
The Tribunal found that the appellants are indeed entitled to claim the abatement of equalized sales tax from the transaction value. Consequently, both impugned orders were set aside, and both appeals were allowed with consequential relief. The stay applications were also disposed of.

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