Excise duty deduction under valuation notification includes special excise duty when the term is used without restriction.

For valuation of patent and proprietary medicaments under Notification No. 245/83, the expression "excise duty" deductible from the price was held to include special excise duty as well as basic excise duty. The Tribunal followed its earlier ruling and interpreted the notification language broadly because the term was used without restriction. Special excise duty was therefore deductible in computing assessable value, and the issue was decided in favour of the assessee.

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Issues: Whether, while computing the assessable value of patent and proprietary medicaments for the purpose of Notification No. 245/83, the expression "excise duty" deductible from the price includes special excise duty.

Analysis: The Tribunal followed its earlier decision on the same point and held that the words "excise duty" in the relevant explanation are not confined to basic excise duty alone. They take within their ambit special excise duty as well, and therefore that component is also liable to be deducted in arriving at the assessable value.

Conclusion: The special excise duty is includible within "excise duty" for deduction under the notification, and the issue is decided in favour of the assessee.

Ratio Decidendi: Where an exemption or valuation notification uses the expression "excise duty" without restriction, it encompasses both basic excise duty and special excise duty for the purpose of deduction.

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