ALSTOM LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) COMMON issue arising for consideration in these appeals at the instance of the assessees is whether the amount of Saks Tax payable at effective rate ignoring the set off available in respect of the inputs is eligible for deduction from the cum duty price of excisable goods for determining the assessable value under Section 4 of the Central Excise Act.

(2.) THE appellants rely on the following decisions in support of the contention that they are entitled to deduct the entire sales tax payable ignoring the set off allowed under the relevant provisions of the Sales Tax Act as against the finding of the assessing authority that the eligibility is limited to the actual amount deposited with the State Government : - ORDER<DJG>(1) Vardhaman Spinning & Gen. Mills Ltd. v. CCE, Chandigarh - 2001 (46) RLT 621(CEGAT - Del.) (2) Oswal Woollen Mills v. CCE, Chandigarh - 2002 (146) E.L.T. 316 (T) = 2002 (50) RLT 385 (3) Econ Antri Ltd. v. CCE, Indore - 2002 (144) E.L.T. 642 </DJG>

(3.) ON going through the facts of the cases we are of the view that the ratio of the decisions relied on by the appellants would' be applicable here. In Andhra Oxygen Pvt. Ltd., it was not a case of set off allowed to the assessee under the relevant Sales Tax Law. The finding therein was that there was total exemption from sales tax at the stage of second sales of compressed oxygen and liquid oxygen and therefore the circular dated 11 -1 -1994 has no application. In the present cases the circular would be directly applicable. Similar view is expressed in the circular dated 9 -10 -1992 the relevant portion of which reads as follows : -