2012 (3) TMI 349

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....t. Shri S.K. Panda, JCDR, for the Respondent. ORDER The demand of duty of Rs. 4,06,412/- stands confirmed against the applicant/appellant along with imposition of penalty of identical amount by including the quantum of sales tax collected by them from their customers but not paid to sales tax department. 2. After hearing both sides, we find that the sales tax was being collected by the....

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....t, 1973, the Tribunal has observed that 50% of Sales Tax amount retained by way of adjustment between the assessee and the State Government towards release of capital subsidy by State Government and this adjustment does not change the nature of the amount as Sales Tax payable. We find that the said decision of the Tribunal fully covers the issue involved in the present case. 4. Learned AR appea....

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....as otherwise exempted, is liable to excise duty. However, in the present matter, we find that the scheme operates differently. The sales tax is deemed to be paid to the sales tax authority but adjusted against subsidy to be paid by the State to the appellant. So the sales tax collected is to be considered as sales tax payable within the meaning of transaction value as defined in Section 4 of Centr....