TaxTMI 
TaxTMI 
1981 (9) TMI 120
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....tifications dated 1-4-1971 and 17-3-1972 issued under section 3 of the Central Excises and Salt Act, it was provided : (1) Nil rates applicable only to the first clearances up to a value not exceeding rupees one lakh in a financial year, and (2) Nil rates applicable only in case of a manufacturer whose value of steel furniture cleared in the preceding financial year had not exceeded rupees two lakhs. In case of a manufacturer who had no clearance in the preceding financial year 'nil' rates should be applicable only in case where the value of steel furniture during the financial year does not exceed rupees two lakhs. In the earlier notification dated 1-4-1971, exemption was provided up to Rs. 50,000/- and in the latter notification this exem....
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....Act) provides levy and collection of excise duty at the rates set forth in the First Schedule on all excisable goods which are produced or manufactured and the levy and collection shall be in the manner as may be prescribed by the rules. The First Schedule provides the rates of tariff on excisable goods. The rates are in some cases on the basis of the value or the weight of the goods. Section 4 of the said Act provides for valuation of excisable goods for purposes of charging of duty of excise. When duty is leviable with reference to the value, the said value shall be the 'value' mentioned in section 4. Section 4(4)(d) explains the word "Value". Therein it has been mentioned that this value does not include the amount of duty of excise, sal....
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....e writ petition). As in the year 1972-73, the total value of the goods cleared was more than rupees two lakhs, petitioner was not entitled to exemption for the year 1973-74. But for the other years, he claims that he would be entitled to such exemption. According to the opposite parties, although petitioner has availed the concession of duty, he has charged duty at the rate of 20% on such goods while selling and therefore the valuation is to be computed including this excise duty (vide Annexure 3 series). According to the Department, the value of goods cleared free of duty is raised by the amount equivalent to the duty charged from the purchasers. To illustrate this point, if the customer has been charged Rs. 10,000/-, the duty element bein....
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....ry Ltd. v. The Assistant Collector of Central Excise and others, 1976 Tax L.R. 1263. While dealing a case of Excise duty, the Company objected to payment of Excise duty on its billing price. It was held by the Kerala High Court that the Company was justified in its stand and the Excise authorities were not entitled to levy duty on the billing price without making allowance for all the items of operation subsequent to manufacture. This can be taken as an analogy for the proposition that the excise duty even though included in the billing price cannot be taken as the value of the goods as envisaged under section 4 of the Act. Reliance has also been placed on Modi Rubber Ltd. v. Union of India and others reported in Cen-Cus 1978 Vol. Vl at pag....
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....ation. 10. The learned Standing Counsel for the opposite parties had relied on a decision of Bata Shoe Company Private Limited v. Collector of Central Excise reported in 1979 E.L.T. (1464) (see Valuation and Price List under Central Excise by R.K. Jain at page 380). The Calcutta High Court is of the view that section 4 of the Act means determination of a value for the purpose of duty and it does not mean for the purpose of exemption from duty. The Calcutta High Court has referred to a Bench decision of the Patna High Court in Bata Shoe Company Private Limited v. The Collector of Central Excise, Patna. The Patna High Court has held that the duty element has got to be deducted from the wholesale price regardless of any consideration whether ....