https://www.taxtmi.com/caselaws?id=116208 Equalised deduction of sales tax under the circular was available only where the tax was payable on the goods and the deduction was supported by records; it could not be claimed for goods manufactured in an exempt unit on which no sales tax was payable or paid. Even so, the overall arrangement was revenue neutral because the assessee was entitled to deduct the full tax paid on taxable clearances, and disallowance in one part would only shift the deduction elsewhere. On that basis, the demand and penalty were unsustainable, and the duty demand was set aside. en-us Tue, 05 Apr 2005 00:00:00 +0530 Sat, 02 Jan 2016 10:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=116208 Equalised deduction of sales tax under the circular was available only where the tax was payable on the goods and the deduction was supported by records; it could not be claimed for goods manufactured in an exempt unit on which no sales tax was payable or paid. Even so, the overall arrangement was revenue neutral because the assessee was entitled to deduct the full tax paid on taxable clearances, and disallowance in one part would only shift the deduction elsewhere. On that basis, the demand and penalty were unsustainable, and the duty demand was set aside. Case-Laws Central Excise Tue, 05 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=116208