2016 (6) TMI 442

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....ms of scheme implemented by Government of Rajasthan the appellants were availing exemption from sales tax to the extent of tax paid on raw material used in manufacture of final product. Revenue entertained a view that the appellants have not arrived at correct assessable value for discharging Central Excise duty and initiated proceedings against them. It is contended that the scheme of abatement of sales tax provides for retention of certain amount which is not a sales tax actually paid or payable on goods and, as such, the amount of sales tax collected but retained by the appellant is not eligible for abatement under Section 4 (3) (d) of Central Excise Act, 1944. The Revenue alleged that claiming excess abatement in the name of sales tax r....

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....ax on the inputs and the concession is not to include that much tax while discharging the total turnover tax. It is the case of the appellant that such payment of sales tax on the inputs should be considered as payment of tax on the final product for the purpose of abatement in value for Central Excise. 3. The Learned Counsel also strongly pleaded on the point of demand hit by time bar stating that there are many decisions in favour of the assessees in similar matters and, hence, the appellant cannot be accused of suppression or willful mis-statement in calculating the assessable value for excise purpose. He also made submission regarding the eligibility of cum duty value in case of allowing abatement only to the extent of actual payment....

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....n inputs and such amount is being adjusted to arrive at the tax payable on the final products and as such it should be treated, when taken together, they have discharged full sales tax on the final product. We find that this submission is not factually or legally admissible. The Central excise valuation is being done for the final product and the sales tax actually payable or paid on such final product only can be given exclusion. The appellants argument as above is against the concept of transaction value in terms of Section 4. The principle laid down by the Hon'ble Supreme Court in the above-mentioned case is equally applicable to the facts of the present case. The legal position that emerges is that if the assessee charged and collected....