Turnover tax deductible from assessable value for central excise; order set aside and matter remanded for fresh adjudication.

Turnover tax is deductible from the sale price when determining assessable value for central excise purposes, and the deduction cannot be refused merely because the tax is remitted periodically to the taxing authority. The Tribunal applied the Supreme Court's principle on deductible taxes and followed its own earlier consistent ruling. The impugned order was set aside and the matter was remanded for fresh adjudication in accordance with those controlling decisions, with observance of natural justice and grant of personal hearing.

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Issues: Whether turnover tax is deductible from the assessable value for central excise purposes.

Analysis: The dispute was governed by the principle that taxes such as turnover tax are allowable deductions from the sale price while determining assessable value, and such deductions cannot be denied merely because the taxes are paid periodically to the relevant taxing authority. The Tribunal applied the Supreme Court ruling on deductible taxes and followed its own earlier decision consistent with that principle.

Conclusion: Turnover tax is deductible from the assessable value. The impugned order was set aside and the matter was remanded for readjudication in accordance with the controlling decisions, with observance of natural justice and grant of personal hearing.

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