Amount of Excise Duty - not to include Post Manufacturing Expenses - Supreme Court
ONCE upon a time there was a rule that when inputs or capital goods, on which credit has been taken, are removed as such from the factory, the manufacturer of the final products shall pay an amount equal to the duty of excise which is leviable on such goods at the rate applicable to such goods on the date of such removal and on the value determined for such goods under Section 4 of the said Central Excise Act.
In a case relating to such clearances, , the tribunal held that Post manufacturing expenses cannot possibly amount to a duty of excise leviable on such goods and therefore all amounts paid under the debit notes could not be added to the value of those goods.
The Supreme Court agreed on Friday holding that the Tribunal was also correct in holding that post manufacturing expenses cannot be loaded on to the amount equal to the duty of excise leviable on such goods as this amount would, then, cease to be an amount equal to the duty of excise but would be something more.
Does it mean that post manufacturing expenses are not includible in the assessable value? They would say this judgement is in a different context!.
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