valution under central ecxise

[MOHAMED RAFIQ]

whether royalty paid to state govt.for extraction of ,minerals is a statutory levy or tax.if so,while calculating excisable value the value of royalty canbe excluded

AI Summary

Debate Over Mineral Royalty: Is It a Tax or Compensation? Implications for Excise Duty Under Section 4. A discussion on a forum addressed whether royalty paid to the state government for mineral extraction is considered a statutory levy or tax, and if it should be excluded when calculating excisable value. One participant argued that royalty should be excluded from the assessable value, implying excise duty is payable excluding royalty. Another participant countered, referencing Black's Law Dictionary, stating that royalty is compensation for resource use and not a tax, thus not eligible for exclusion under Section 4 of the Central Excise Act when determining transaction value for excise duty.