Statutory administrative charges under a State levy were excluded from excise assessable value as tax in the widest sense.

Administrative charges recovered by a State Government under the U.P. Sheera Niyantran Adhiniyam, 1964 were treated as a statutory levy in the nature of tax. Applying the principle that tax, in its widest sense, includes amounts raised by taxation and other statutory charges, the Tribunal held that such charges do not form part of the assessable value of molasses for central excise purposes under Section 4(4)(d)(ii) of the Central Excise Act. The administrative charges were therefore excluded from assessable value, and the appeals were allowed.

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Issues: Whether administrative charges collected by the State Government under the U.P. Sheera Niyantran Adhiniyam, 1964 were includible in the assessable value of molasses for central excise purposes.

Analysis: The issue was treated as already settled by the Tribunal's earlier decision holding that administrative charges recovered under a State statutory levy are in the nature of tax. Relying on the principle that tax, in its widest sense, includes amounts raised by taxation and other statutory charges, the Tribunal held that such administrative charges do not form part of the assessable value under Section 4(4)(d)(ii) of the Central Excise Act.

Conclusion: The administrative charges were held not includible in the assessable value, and the appeals were allowed.

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