Administrative charges on molasses treated as other taxes and excluded from excisable assessable value

Administrative charges levied under Section 8(4) of the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 were treated as a statutory impost on molasses sold or supplied by sugar factories. The Court construed "tax" in Section 4(4)(d)(ii) of the Central Excise Act, 1944 broadly to include any compulsory exaction imposed under statutory authority. On that construction, the administrative charges fell within "other taxes" payable on the goods and were excluded from the assessable value of molasses under the excise valuation provision.

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Issues: Whether administrative charges levied under Section 8(4) of the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 are includible in the assessable value of molasses under Section 4(4)(d)(ii) of the Central Excise Act, 1944, or are excluded as "other taxes".

Analysis: The assessable value under Section 4(4)(d)(ii) excludes duty of excise, sales tax and other taxes payable on the goods. The expression "tax" was construed in its wide sense, covering any levy or compulsory exaction imposed under statutory authority. The administrative charges were a statutory impost levied by the State Legislature on molasses sold or supplied by sugar factories, and the charge was recoverable from the buyer as an additional amount. On that construction, the levy fell within the expression "other taxes" for the purpose of exclusion from assessable value.

Conclusion: The administrative charges were not includible in the assessable value and stood excluded under Section 4(4)(d)(ii) of the Central Excise Act, 1944.

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