Assessable value under central excise excludes collected cess that retains its tax character, even if not remitted to government.

Textile Committee cess collected from customers but not deposited with the Government was not includible in the assessable value for central excise purposes. Under Section 4 of the Central Excise Act, both before and after the 1-7-2000 substitution, the assessable or transaction value excludes duty of excise, sales tax and other taxes actually payable or paid on the goods. The cess remained a tax levied on the goods, and mere retention of the collected amount by the assessee did not change its tax character or convert it into additional sale consideration. Revenue's contrary view was rejected.

---

---

Issues: Whether Textile Committee cess collected by the assessee from customers but not deposited with the Government was includible in the assessable value for central excise purposes.

Analysis: For the period prior to 1-7-2000, the value under Section 4 of the Central Excise Act excluded duty of excise, sales tax and other taxes payable on the goods. After substitution of Section 4, transaction value remained the price actually paid or payable, and it continued to exclude the amount of duty of excise, sales tax and other tax actually paid. The cess in question was admittedly leviable on the goods, and the mere retention of the collected cess by the assessee did not alter its character as an amount collected for payment of cess or transform it into additional consideration for the sale.

Conclusion: The cess was not includible in the assessable value, and the Revenue's appeal was rejected.

Ratio Decidendi: Taxes collected in respect of excisable goods do not become part of assessable value merely because they are not remitted to the Government, where their tax character and levy on the goods remain unchanged.

---