Dear friends,
Pl find attached copy of Supreme Court judgement dated 28.2.2014 which may have far reaching effects.
In this case as per State Govt incentive scheme companies were allowed to collect full tax from customers but required to deposit only 25% amount with govt and retain remaining 75% with them as incentive. The question is whether excise duty is payable on such 75% amount not paid to the govt. Tribunals have so far held that ED is not payable. However, Supreme Court has now held that ED is not payable upto 30.6.2000. However, from 1.7.2000 (when concept of transaction value was introduced), it has to be included in transaction value and ED is payable.
We have to assess impact of this judgement in our own cases.
Thanks
