Turnover tax deduction from excisable value upheld where the tax was legally payable, even if not separately invoiced.

Turnover tax payable by a manufacturer was deductible from the assessable value for central excise purposes because the statutory exclusion covered sales tax and other taxes payable on the goods. The fact that the tax was not separately shown in the invoice or collected over and above the sale price did not defeat deduction, since legal liability to pay the tax existed at the relevant time. The disallowance by the authorities was therefore incorrect.

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Issues: Whether turnover tax payable by the manufacturer was deductible while determining the assessable value for central excise purposes.

Analysis: The relevant statutory expression excludes from value the amount of sales tax and other taxes payable on the goods. Turnover tax was legally payable by the manufacturer even though, due to the prohibition under the sales tax law, it was not shown separately in the invoice or collected over and above the sale price. Deduction cannot be denied merely because the tax was not separately recovered at the time of clearance.

Conclusion: Turnover tax was deductible from the assessable value, and the disallowance made by the authorities below was incorrect.

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