CIR NO.763/79/2003-CX, DT. 21/11/2003
- Document type
- Circular
- Reference no.
- J
- Dated
Inclusion of Amount of Dharmada In the Assessable Value of Goods
Inclusion of Amount of Dharmada In the Assessable Value of Goods
I am directed to say that the issue whether the amount of "Dharmada" collected from the buyers by the assessee is includible in the assessable value or not has been subject matter of dispute in a number of cases. Recently, this issue again came up before the Hon"ble Supreme Court in Civil Appeal Nos. 7900-7902/95 in the case of CCE, Allahabad v. M/s. Panchmukhi Engg. Works & Ors. and the Hon"ble Supreme Court vide its order dated 28-11-2002 allowed the appeals in favour of Revenue. The Revenue"s stand in the said of case had been that "Dharmada" is includible in the assessable value.
2. Ministry of Law had also advised that the division bench decision dated 28-11-2002 of the Hon"ble Supreme Court should be followed by the Department on this issue.
3. It is therefore clarified that "Dharmada" collected by the assessee from the buyer in includible in the assessable value of the goods.
4. Suitable Trade Notice may be issued for the information of the Trade.