Commissioner Of Central Excise, Mumbai ... vs Crompton Greaves Ltd on 20 February, 2008
Further as per their own books of accounts they actually paid Rs.1,20,72,200/- as turnover tax to the State Government and submitted a Chartered Accountants certificate in respect of the same and therefore the excess turnover tax claimed as deduction amounted to only Rs.18,08,804/- on which the excise duty at the applicable rate came to Rs.2,35,145/-. They however claimed that the deductions are always claimed on an average basis and the actual incidence of taxes may vary from what is claimed as deduction. Therefore the question of imposing a ceiling of the actuals would not arise in such a case provided the genuineness of the equalized amount is accepted. They referred to the decision of the Honble Apex Court decision in the case of Baroda Electric Meters Ltd. 1999 (94) ELT 34 (SC) and Geep Industrial Syndicate Ltd. vs. Collector of C. Ex. 1998 (104) ELT 375 (Tri.) in which it is held that turnover taxes and octroi which were made irrecoverable could not have been collected but once these taxes were paid by the assessees to the authorities concerned the deduction of the same cannot be denied. The Deputy Commissioner agreed with the pleas advanced by the respondents and accordingly dropped the proceedings. This order was also upheld by the Commissioner (Appeals) on appeal being filed by the Revenue. It is against this order that the Revenue has come up in appeal.