Tribunal affirms duty inclusion in assessable value under Notification, emphasizing retrospective effect.

The Tribunal upheld the inclusion of duty collected but not paid to the Revenue in the assessable value under Notification No. 71/78-C.E., citing Section 4 of the Central Excises and Salt Act, 1944. The appellant's exemption claim was refuted, emphasizing the retrospective effect of the Explanation in Section 4(4)(d) and the necessity to consider the effective duty payable. The Tribunal dismissed the appeal, affirming that the duty collected from customers must be added to the assessable value, in line with relevant legal provisions and precedents.

---

---

Issues:
Inclusion of additional value of central excise duty not paid to the department in the assessable value under Notification No. 71/78-C.E.

Analysis:
The appeal concerned the inclusion of an additional value of central excise duty, amounting to Rs. 52,495.50, which was collected from customers but not paid to the department. The appellant contended that they were exempt under Notification No. 71/78-C.E. for the first clearance up to a certain value. The central issue was whether the duty collected but not paid should be added to the assessable value. The Department argued that as per Section 4 of the Central Excises & Salt Act, 1944, the duty realized but not paid must be included in the assessable value. The Department referred to the case of M/s. Hubli Chemical Works v. Collector of Central Excise, Madras to support their argument.

The Tribunal noted that the facts were undisputed, with the appellant realizing duty from customers but not remitting it due to the exemption under Notification No. 71/78-C.E. The Tribunal referred to the case law and the provisions of Section 4(4)(d)(ii) of the Act, which exclude duty payable on goods from the assessable value. The Tribunal cited the case of M/s. Hubli Chemical Works v. C.C.E., Madras and a judgment by the Andhra Pradesh High Court to support the inclusion of the duty collected in the assessable value.

Further, the Tribunal discussed the Explanation inserted in Section 4(4)(d) with retrospective effect from 1-10-1975, clarifying the computation of excise duty payable on goods. The Tribunal emphasized that the effective duty payable must be considered, and the appellant's contention to exclude the duty due to the exemption was no longer tenable post the Explanation. The Tribunal cited a judgment in the case of Collector of Central Excise v. M/s. MA. Paper and Card Board to reinforce the inclusion of duty charged but not paid in the assessable value.

Conclusively, the Tribunal upheld the lower authorities' findings, stating that the duty collected from customers but not paid to the Revenue must be included in the assessable value as per the provisions of Section 4 of the Central Excises and Salt Act, 1944. The appeal was dismissed, with the Tribunal finding no merit in the appellant's arguments.

---