2003 (6) TMI 119

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....ice K.K. Usha, President]. - In these appeals at the instance of the assessee the issue raised is whether it is entitled to claim deduction under Section 4(4)(d)(ii) in respect of full amount of sales tax payable @ 2%. The Commissioner took the view that the appellant can claim deduction only to the extent of sales tax paid to the Government. Aggrieved by the above the assessee has come up in appe....

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....f sales tax paid to the Government. Notice demanded differential duty on the balance amount of sales tax collected from the customers by treating the same as additional consideration. The Commissioner of Central Excise, Jaipur-II took the view that what has been granted to them in respect of sales tax is in the nature of an exemption and not an incentive, therefore, not deductible under Section 4(....

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....issioner is justified in treating the transaction as an exemption from sales tax and not an incentive. Therefore, no deduction can be claimed in respect of 75% retained by the assessee under Section 4(4)(d)(ii). 5. The learned Counsel for the appellant took us through the Sales Tax New Incentive Scheme for Industries, 1989 and the assessment orders under Sales Tax Act. It would clearly show tha....

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....ayment towards sales tax by the manufacturer." After accepting the advise of Law Ministry in the matter it is made clear that in such a situation the sales tax is deductible from the wholesale price for determination of assessable value under Section 4 of the Central Excise Act for levy of Central Excise duty. 6. We find that the Commissioner has erred in denying the claim put forward by the....