2016 (11) TMI 182

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....s been filed by the department against the impugned order passed in appeal by the Commissioner (Appeals) vide Order dated 31.12.2003 vide which the Commissioner (Appeals) has rejected the departmental appeal and upheld the Order-in-Original. Briefly the facts of the present case are that the respondent is a manufacturer of excisable goods i.e. Colour Television receiver under Chapter 85 of CETA, 1....

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....a component of tax, as it is not permitted to be collected from buyer of excisable goods, it has to be treated as overhead expense while working out of the cost of the product or the seller has to meet the same out of his profit resulting in the reduction in the profit margin. He further submitted that turnover tax merges with the other costs and it becomes an overhead expense and does not qualify....

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....L.T. 294 (S.C). The Honble Supreme Court in the case of Sujata Textile Mills Ltd. has held that under Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944, the value is not to include the amount of duty of excise, sales tax and other taxes if any payable on goods. Under Section 18 of the Karnataka Sales Tax Act, 1957 a registered dealer has to pay a tax known as 'turnover tax' and by vir....