Assessable value for industrial cess excludes embedded excise duty, making excess cess refund maintainable.

For cess computation under Section 9(1) of the Industries (Development and Regulation) Act, 1951, the assessable value follows the same basis as Section 4(1) of the Central Excise Act, 1944. On that principle, the excise duty element embedded in the wholesale price cannot be included in the assessable value for cess. The short-levy demand was therefore not justified, and a refund claim for cess paid in excess was maintainable.

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Issues: Whether, for computation of cess under Section 9(1) of the Industries (Development and Regulation) Act, 1951, the excise duty element forming part of the wholesale price is to be deducted while determining the assessable value.

Analysis: The Tribunal applied the Supreme Court's ruling that the assessable value for cess under the Industries (Development and Regulation) Act, 1951 is the same as the assessable value under Section 4(1) of the Central Excise Act, 1944. On that basis, the excise duty element embedded in the price cannot form part of the assessable value for cess computation. The demand for short levy was therefore unwarranted, and the refund claim based on excess cess paid was maintainable.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

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