Central excise duty deductible from cum-duty price when computing cess value under the Industries Act.

For computing cess under Section 9 of the Industries (Development and Regulation) Act, 1951, the value is the wholesale cash price subject only to trade discount and the duty then payable. On that construction, "duty" refers to central excise duty under the Central Excises and Salt Act, 1944, so central excise duty must be deducted from the cum-duty price before arriving at the assessable value for cess. The point was treated as covered by prior Tribunal authority, and the Revenue's challenge failed.

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Issues: Whether, for the purpose of quantifying cess under Section 9 of the Industries (Development and Regulation) Act, 1951, central excise duty payable on the goods is deductible from the cum-duty price while computing the value on which cess is charged.

Analysis: The Explanation to Section 9(1) deems the value to be the wholesale cash price without any abatement or deduction except trade discount and the amount of duty then payable. The expression "duty" was read as referring to central excise duty under the Central Excises and Salt Act, 1944. On that construction, the amount of central excise duty had to be deducted from the cum-duty price for determining the value for cess. The issue was treated as covered by prior Tribunal authority.

Conclusion: Central excise duty is deductible from the cum-duty price when computing the value for cess under Section 9 of the Industries (Development and Regulation) Act, 1951, and the appeal by the Revenue fails.

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