Excisable value excludes purchase tax on raw materials, since only taxes on the goods under assessment are deductible.

Purchase tax paid on raw materials used to manufacture electric fans was held not deductible when fixing assessable value under Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944. The provision was treated as allowing deduction only for sales tax and other taxes payable on the excisable goods under assessment, not taxes embedded in the cost of inputs. Because the tax on raw materials formed part of the manufacturing cost of the finished fans, its State character as a levy in lieu of sales tax did not change the valuation position. The departmental appeal therefore succeeded on this issue.

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Issues: Whether purchase tax paid on raw materials used in the manufacture of electric fans could be deducted from the sale price while determining the assessable value of the excisable goods under Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944.

Analysis: The allowable deductions under the provision are confined to sales tax and other taxes payable on the excisable goods that are themselves under assessment. In this case, the excisable goods were electric fans, whereas the disputed purchase tax was paid on raw materials used in their manufacture. Such tax formed part of the cost of the raw materials and, therefore, entered into the manufacturing cost of the finished fans. The fact that the tax may have been levied by the State in lieu of sales tax did not alter its character for valuation purposes.

Conclusion: Purchase tax on raw materials was not deductible from the assessable value of the electric fans, and the departmental appeal succeeded on that issue.

Ratio Decidendi: For valuation under Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944, only taxes payable on the excisable goods under assessment are deductible, not taxes paid on raw materials used in their manufacture.

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