1997 (1) TMI 476 - AT - Central Excise

Summary

Issues:
1. Deletion of footnotes in price lists.
2. Disallowance of quantity discount to specific parties.

Analysis:

Issue 1: Deletion of footnotes in price lists
The appellant, engaged in manufacturing various goods, challenged the deletion of footnotes 7 and 10 in the price list effective from 8-8-83. The footnotes related to contract rates under previous price lists and the continuation of those rates for unfulfilled contracts. The Tribunal found that the deletion of footnotes was unjustified as the appellant had included goods meant for contracts in price lists under Part I. The Tribunal held that this procedural error did not warrant the deletion of footnotes without allowing the appellant to rectify the mistake by filing fresh price lists in Part II. The Tribunal remanded the matter for fresh consideration after giving the appellant an opportunity to correct the error.

Issue 2: Disallowance of quantity discount
In Appeal 922/88-A, the lower authorities disallowed quantity discounts to M/s. J.K. Industries Ltd. and M/s. CEAT Tyres. The Tribunal found the disallowance of quantity discount to M/s. J.K. Industries Ltd. unjustified, citing a precedent where discounts could not be disallowed if the manufacturer permitted buyers to enjoy concessional prices despite not meeting quantity requirements. However, the disallowance of quantity discount to M/s. CEAT Tyres was upheld as the discount was not offered to all buyers who met the specified conditions. The Tribunal set aside the disallowance of quantity discount to M/s. J.K. Industries Ltd. and remanded the cases for a fresh decision, emphasizing the need for a personal hearing for the appellant.

In conclusion, the Tribunal set aside parts of the impugned orders related to the deletion of footnotes and the disallowance of quantity discount to M/s. J.K. Industries Ltd. The cases were remanded to the adjudicating authority for reconsideration after providing the appellant with an opportunity for a personal hearing. The appeals were allowed in part.