Order
1. The respondent assessee is engaged in the manufacture of Ball and Taper-Rollers Bearings falling under Chapter Heading 84.82 of the Schedule to the Central Excise Tariff Act, 1985. It had availed sales tax benefits in the sense that the sales tax was paid at concessional rates under the sales tax incentive scheme which was floated by the State of Rajasthan.
2. The question arose as to whether the benefit of sales tax which was availed by the respondent would be included while fixing the value of the product for the purpose of payment of excise duty. This issue squarely stands covered by the judgment of this Court in CCE v. Super Synotex India Ltd. (2014) 15 SCC 276, (2014) 301 ELT 273 In that case this Court has taken the view that the assessee would be entitled to claim deductions towards sales tax from the assessable value of the sales tax which is retained by the assessee. The Court also pointed out that this position had changed after the amendment in Section 4 w.e.f. 1-7-2000 and in arriving “transaction value” said sales tax benefit which was retained by the assessee, would be included while fixing the “transaction value”. The counsel for both the parties would not dispute that the matter is covered by the aforesaid judgment.
3. In these appeals the period involved is from 1-4-1998 to 31-3-2002. Thus, insofar as the period up to 1-7-2000 is concerned, the case has to be decided in favour of the assessee and for the period from 1-7-2000 the benefit availed under the sales tax has to be included while arriving at the transaction value.
4. The appeals are disposed of in the aforesaid manner with direction to the assessing authority to compute the transaction value in the manner above.
5. In the aforesaid facts and also going by the ratio of Super Synotex (2014) 15 SCC 276, (2014) 301 ELT 273 insofar as the penalty is concerned, the same is set aside.