M/S D.J. MALPANI versus COMMISSIONER OF CENTRAL EXCISE, NASHIK

M/S D.J. MALPANI versus COMMISSIONER OF CENTRAL EXCISE, NASHIK

Dharmada collected as an optional charitable donation from buyers, credited to charity, does not constitute consideration for the sale of goods, and therefore cannot be included in transaction value or assessable value for excise duty purposes.

Parties
Appellant: M/S D.J. Malpani; Respondent: Commissioner of Central Excise, Nashik
Jurisdiction
India
Judgment Date
09 April 2019
Procedural Posture
Civil Appeal / Final Judgment on Appeal From CESTAT
Outcome
Appeal allowed; judgment of CESTAT set aside.
Legal Topics
Central Excise Valuation, Assessable Value, Charitable Donations (dharmada), Transaction Value
Taxation Commercial Law Central Excise Valuation Assessable Value Charitable Donations (dharmada) Transaction Value

Case Brief

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Parties

M/S D.J. Malpani

Appellant

Commissioner of Central Excise, Nashik

Respondent

Procedural Posture

Civil Appeal / Final Judgment on Appeal From CESTAT

Legal Issues

  1. 1 Whether Dharmada collected as voluntary charitable donation by seller should be included in assessable value for Central Excise duty

Ratio Decidendi

Dharmada collected as an optional charitable donation from buyers, credited to charity, does not constitute consideration for the sale of goods, and therefore cannot be included in transaction value or assessable value for excise duty purposes.

Court Disposition

Appeal allowed; judgment of CESTAT set aside.

Orders

  • Dharmada to be excluded from assessable value for Central Excise duty purposes.
  • Judgment of the Central Excise and Service Tax Appellate Tribunal (CESTAT) set aside.