COMMISSIONER OF CENTRAL EXCISE Vs. SHRUTI SYNTHETICS LTD.

JUDGEMENT

(1.) Revenue has filed this appeal against Order -in -Appeal No. 559/2003 dated 10 -12 -2003 by which the Commissioner (Appeals) has held that Textile Committee CESS collected by M/s. Shruti Synthetics Ltd. and not paid on the Govt. account is includible in the assessable value under Section 4 of the Central Excise Act.

(2.) When the matter was called, no one was present on behalf of the respondents. Infact the notice sent for the date of hearing is received back from the postal authorities. We, therefore, heard Shri S.C. Pushkarna, learned Departmental Representative, and perused the records. It has been contended by the learned Departmental Representative; that the respondents had collected Textile Committee CESS amounting to Rs. 7,74,458/ - during the period November, 1997 to October, 2002 from their customers which had been retained by them and not deposited to the Government account; that therefore, the said amount is nothing but additional monetary consideration received by the respondents and as such the same is includible in the assessable value, in terms of Rule 5 of the Central Excise (Valuation) Rules, 1975 and in terms of Rule 6 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.

(3.) Prior to 1 -7 -2000, Section 4(4)(d)(ii) of the Central Excise Act provided that value in relation to any excisable goods does not include the amount of duty of excise, sales tax and other tax, if any, payable on excisable goods. After 1 -7 -2000, Section 4 of the Central Excise Act was substituted which provides for levy of duty on transaction value of goods. Expression "Transaction value" has been defined in sub -section (3)(c) of Section 4 of the Central Excise Act according to which transaction value means the price actually paid or payable for the goods when sold and includes in addition to the amount charged as price, any amount that the buyers is liable to pay to the assessee by reason and/or in respect of the sale but does not include the amount of duty of excise, sales tax and other tax if any actually paid on such goods. It is thus seen that the taxes are not includible in the assessable value. It is not the case of the Revenue that Textile Committee CESS was not leviable on the excisable goods manufactured by the respondents. The mere fact that the respondents had collected the Textile CESS from their Customers but did not deposit with the Government does not mean that the CESS is not liable to be paid or the amount collected looses its character of the amount collected for payment of CESS. We, therefore, find no infirmity in the impugned order and reject the appeal filed by Revenue.