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of <h1>Entry Tax Exclusion from Excise Duty Value: Tribunal Allows Deduction</h1> <h3>Indian Oil Corporation Ltd. Versus CCE, Delhi-I</h3> Indian Oil Corporation Ltd. Versus CCE, Delhi-I - 2016 (336) E.L.T. 660 (Tri. - Del.) Issues:Inclusion of entry tax in the assessable value for excise duty clearance.Detailed Analysis:Issue 1: Inclusion of entry tax in the assessable valueThe appeal was filed against the order of the Commissioner (Appeals) regarding the inclusion of entry tax in the assessable value for excise duty clearance. The Appellants, engaged in manufacturing petroleum products, cleared goods from a bonded warehouse in Rajasthan, paying central excise duty and entry tax of 1%. The Revenue contended that entry tax, payable before goods clearance, should be part of the assessable value. The appellant argued that entry tax was collected at the time of sale, not entry into Rajasthan, citing clarifications on the levy collection method. The Tribunal noted that entry tax could be collected based on the market value of goods at the time of sale and should be deductible under Section 4(1) of the Central Excise Act, 1944. Referring to a Supreme Court judgment, the Tribunal emphasized that taxes like sales tax and octroi, when payable/paid, should be allowed as deductions. The Tribunal found that entry tax, though collected on entry, was akin to excise duty collected at the time of clearance. In a previous case, the Commissioner had dropped the demand for entry tax for earlier periods, drawing a parallel with the exclusion of excise duty from transaction value. After careful examination, the Tribunal concluded that the entry tax paid by the appellant was not includible in the value for excise duty, setting aside the impugned order and allowing the appeal.This judgment clarifies the treatment of entry tax in the assessable value for excise duty clearance, emphasizing the collection method and legal provisions under the Central Excise Act. It highlights the distinction between taxes collected at entry and those collected at the time of sale, drawing parallels with excise duty for a comprehensive analysis.
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