Customs, Excise and Gold Tribunal - Tamil Nadu
M/S. Kothari Sugars & Chemicals Ltd. vs Commissioner Of C.Ex., Trichy on 24 May, 2001
ORDER Shri S.L. PEERAN, Member (T)
1. All these four appeals of same assessee arise in common question of law and facts and hence they are taken up together for disposal as per law.
2. In terms of the impugned order, the authorities had confirmed the demands with respects to administrative service fees collected by State Government in terms of Molasses Control order. Appellants challenged such collection on the ground that administrative fee is a levy and it is in the nature of tax and they were required to be given an abatement under Section 4 (4) (d) (ii) of the Central Excise Act. This plea was not accepted by the authorities below. Hence these appeals.
3. LD.Counsel submits that the issue is no longer res integra and there are large number of judgements on this issue as in the case of CCE Meerut Vs U.P. STATE SUGAR CORPORATION LTD - 1999 (107) ELT 611 which follows earlier final order NO.35/99-A dated 15.1.99 in Appeal E/462/96A. Ld. Counsel also relies on the following judgements :-
(i) CCE Kanpur Vs SARJOO SAHKARI CHINNY MILLS - 1999 (112) ELT 391
(ii) BAJAJ HINDUSTAN LTD -1999 (111) ELT 624 He further submits that the issue was taken up by a Larger Bench of Three Members in the case of UP STATE CORPORATION LTD Vs CCE- 1999 (113) ELT 590 and in all these judgements it was held that administrative fee collected was in the nature of levy & tax and is not to be included in the assessable value in terms of provisions of Sec.4 (4) (d) (ii) of C.E.Act. The Larger Bench has taken into consideration the Apex Court judgement rendered in the case of D.G.GOUSE AND CO,(AGENTS) PVT.LTD & OTHERS Vs. STATE OF KERALA AND ANOTHER -AIR 1980 SC 271.
4. Ld.DR reiterates the departmental view.
5. We have considered the orders passed by both the authorities besides the judgements referred to by the Counsel. We notice that the issue is no longer res integra and the Larger Bench in the case of UP STATE SUGAR CORPORATION LTD., relying on the Apex Court judgement supra has clearly held that administrative fees collected by the assessee under the said State Legislation is required to be treated as levy and tax and they are required to be given abatement and not to be included in the assessable value in terms of provisions of Sec.4(4)(d)(ii). In view of matter having been finally decided by the Tribunal, therefore respectfully following the same, the impugned order is set and appeal allowed.
pronounced and dictated in open court