Case Law Details
Yashraj Containeurs Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
Revenue sought to include the TCS collected by the appellant from the buyer of scrap in the assessable value for charging Excise Duty. The said TCS is collected and deposited to the income tax department in terms of Section 206C of Income Tax Act, 1961.
From the pain reading of Section 206C it is clear that the amount collected as TCS has nothing to do with the price of the goods but it is a tax collected from the buyer of the scrap and the same is deposited in the income tax department, therefore, the amount collected as TCS is a tax and in terms of Section 4, the tax is not includable in the assessable value.
From the plain reading of Rule 6 of Central Excise Valuation Rules, 2000, it is clear that any additional amount if it is flowing from the buyer to the assesse directly or indirectly the same is includable in the assessable value meaning thereby any amount which is coming from the buyer and retained by the appellant alone will be includable in the assessable value. In the present case the TCS is collected not as a additional consideration but explicitly as tax and same is deposited to the income tax department, therefore, it cannot be said that the amount of TCS belongs to the appellant.
In view of the above facts and observations, we are of the clear view that the amount of TCS cannot be considered as additional consideration flowing from the buyer to the appellant accordingly, the same is not includable in the assessable value for charging Excise Duty
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