Excise valuation excludes only duty actually payable after exemption, not the prescribed rate under Notification No. 30/79.

For valuation under Section 4(4)(d)(ii) of the Central Excise Act, 1944, the concession available under Notification No. 30/79 was not to be deducted from the effective duty. The stated principle, drawn from Supreme Court precedent, is that only the excise duty actually payable after applying the exemption notification is excludible, not the duty at the prescribed rate. On that basis, the concession had to be added back while determining assessable value, and the appeal was dismissed.

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Issues: Whether the concession availed under Notification No. 30/79 was required to be deducted in determining the effective rate of duty for the purpose of Section 4(4)(d)(ii) of the Central Excise Act, 1944.

Analysis: The issue was already covered by Supreme Court precedent holding that, for the purpose of exclusion under the relevant valuation provision, only the amount actually payable as excise duty after taking into account the exemption notification is excludible, and not the duty at the prescribed rate. On that basis, the concession obtained under the notification was liable to be added while determining the assessable value.

Conclusion: The concession under Notification No. 30/79 was not deductible in computing the effective duty under Section 4(4)(d)(ii) of the Central Excise Act, 1944, and the appeal was dismissed.

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