2004 (9) TMI 260 - AT - Central Excise

Tribunal rules CESS not includible in assessable value under Central Excise Act

The Tribunal upheld the Order-in-Appeal, ruling that Textile Committee CESS collected by a company, but not paid to the Government, is not includible in ... Valuation (Central Excise) Issues:1. Inclusion of Textile Committee CESS collected by a company in the assessable value under the Central Excise Act.Analysis:The appeal was filed by the Revenue against an Order-in-Appeal that held Textile Committee CESS collected by a company and not paid to the Government account as includible in the assessable value under Section 4 of the Central Excise Act. The Revenue argued that the amount collected by the company from customers was additional consideration and should be included in the assessable value under relevant rules. The Tribunal noted the provisions of Section 4 of the Central Excise Act before and after 1-7-2000. Before the substitution, the Act did not include taxes in the assessable value. However, the new provision under Section 4 after 1-7-2000 defined transaction value as the actual price paid for goods, excluding taxes. The Tribunal emphasized that taxes are not includible in the assessable value. Despite the company collecting Textile Committee CESS from customers but not depositing it with the Government, the CESS remained liable to be paid. The Tribunal concluded that the CESS collected did not lose its character as an amount collected for CESS payment. Therefore, the Tribunal found no fault in the Order-in-Appeal and dismissed the Revenue's appeal.This detailed analysis of the judgment highlights the interpretation of relevant provisions of the Central Excise Act regarding the inclusion of taxes in the assessable value, specifically focusing on the collection of Textile Committee CESS by a company. The Tribunal's decision provides clarity on the treatment of such collected amounts and their impact on the assessable value under the Act.