ORDER
U.L. Bhat, J. (President)
1. Appellant is absent in spite of notice, but has sent a request for decision on merits. We have heard Shri D.S. Negi, SDR and perused the papers.
2. Appellant, manufacturer of various types of paper, was enjoying the benefit of exemption from payment of central excise duty under Notification No. 128/77. However, appellant was collecting tariff rate of duty from buyers. Two show cause notices dated 8-12-1982 and 14-3-1983 were issued to the appellant stating that the excess duty collected, namely, 40% of the tariff rate would become part of the assessable value of the goods and on recalculation of duty, differential duty would be found payable. The appellant resisted the notices on the ground that tariff rate of duty must be deducted from cum-duty price. Assistant Collector overruled these contentions and confirmed the demand. Collector (Appeals) having dismissed the appeal, the present appeal has been filed.
3. In view of the amended provision in Explanation (a) of Section 4(4)(d)(ii) of the Central Excise Act, 1944, there can be no doubt that what is to be deducted is the effective rate of duty and not the tariff rate of duty. The excess amount collected in the name of duty would become part of the cum-duty price and duty has to be paid on recalculation of the assessable value. We find no ground to interfere. Appeal is dismissed.