Cum-duty price computation governs duty recalculation, with customer receipts treated as inclusive of duty and remanded for fresh assessment.

Duty demand was required to be recalculated on a cum-duty basis by treating the total consideration received from customers, including mark-up charges, as inclusive of duty and deducting the duty element from that amount. The Tribunal held that the reassessment should proceed on this computation approach and should not be influenced by the observation that the contract placed the duty burden on the buyers. The matter was therefore remanded for fresh calculation of duty on the cum-duty price basis.

---

---

Issues: Whether the duty demand had to be recalculated by treating the total consideration received from customers, including mark-up charges, as cum-duty price and by deducting the duty element therefrom.

Analysis: The Tribunal accepted the contention that, for the limited purpose of computation, the amount realised from customers had to be treated as cum-duty price. It directed that the duty subsequently demanded must be deducted from the total consideration received, and that the matter be reconsidered without being influenced by the observation that the contract placed the duty burden on the buyers. The reassessment was confined to recalculation of duty in accordance with this approach.

Conclusion: The assessee succeeded to the extent of obtaining remand for fresh computation on the cum-duty price basis.

---