Customs, Excise and Gold Tribunal - Delhi
Pratap Rajasthan Spl Steel Limited vs Cce on 12 August, 2005
ORDER C.N.B. Nair, Member (T)
1. The appellant is a manufacturer of steel products. It collected sales tax from its buyers upon sale of his produce. The said amounts collected as sales tax were not included in the assessable value while assessing the goods to Central Excise duty, on the ground that taxes payable remained excluded under proviso to Section 4(4)(d)(2). Under the impugned orders that claim of the appellant remains denied. It has been held that since the amounts collected as sales tax had not been deposited with the state Government, they were not sales tax payable, and are to be included in the assessable value for the purpose of excise duty.
2. The Contention of the appellant is that the amounts remain as sales tax and dispute only is whether the appellant is entitled to retain them under the incentive scheme or it is required to be deposited with the State Government. The learned Counsel submits that in either case, the amount is sales tax and such a tax is required to be excluded while determining the assessable value. He has also relied on the decision in the appellant_s own case for different period, being final order No. 949/04-NB-A dated 20.09.2004 in Appeal No. E/3369/2003-NB-A.
3. We have perused records and heard learned DR also.
4. Liability of the goods to sales tax is not being doubted. The amounts have been collected as sale tax. So, clearly sales tax was payable. State laws allow sales tax collected to be retained by manufacturer. This is an incentive, to set up/expand industry in the state concerned. That does not change the character of the amounts collected. They remain as sales tax _payable_. And a tax _payable_ is eligible for deduction. The issue remains settled in favour of the appellant by the aforesaid earlier order of the Tribunal. Following that order, the present appeal is allowed, after setting aside the impugned order.