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Is it a case of additional consideration in excise valuation

(Querist) 13 June 2008 This query is : Resolved 
Central Sales Tax collected at the rate of 4 % but paid only 2 % and showing it (rest of the 2% ) in the books of accounts as "Other Receipts".

My Question is -
1. Is it a case of Additional consideration in terms of the Excise Valuation Rules ?

2. Is Excise duty payable on the amounts showing as "Other Receipts" in the books of accounts.
3. Can the DRI (Department of Revenue Intelligence) take the action for evasion of CST.

Pls explain/ clerify.

Sanjay Sharma

Rajesh Kumar (Expert) 13 June 2008
It appears that there is no provision in the Central Sales Tax act, like Section 11D of the Central Excise Act. Thus amount collected in the name of CST is not required to be deposited with the government.
In that case, this is an additional consideration on which Central Excise duty is required to be paid.
Guest (Expert) 13 June 2008
The moment you collect any amount as tax, no matter how you treat it in books, it has to be remitted to Government.

DRI cannot take action for CST evasion ,but your CST or VAT people may do that.
Rajesh Kumar (Expert) 14 June 2008
If there is any such provision in the Act (I am not sure as i do not practice in that area), then it is not an additional consideration for the purposes of Central Excise Valuation.

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