2005 (12) TMI 328 - AT - Central Excise

Summary

Issues: Valuation of Ceramic Glazed Tiles, Abatement on quantity discount

Valuation of Ceramic Glazed Tiles:
The appeal concerns the valuation of Ceramic Glazed Tiles manufactured by the respondents. The Commissioner (Appeals) determined the assessable value based on the normal factory gate sale price, relying on legal precedents such as the Tribunal's decision in CCE v. Taparia Tools Ltd. and the Supreme Court's decision in Ashok Leyland Ltd. v. Collector of Central Excise, Madras. The Revenue argued that wholesale buyers from different origins should not be considered different classes of buyers. However, the Tribunal upheld the Commissioner's decision, citing consistency with established legal principles.

Abatement on Quantity Discount:
Another issue raised was the abatement on quantity discount offered by the respondent after clearance of goods. The Commissioner referred to previous decisions by the Supreme Court and the Tribunal, along with a relevant Board Circular, to support the deductibility of known discounts at the time of clearance. The Revenue contended that quantity discounts should be restricted to specific varieties of tiles, but the Tribunal emphasized that the discount scheme is at the discretion of the assessee as long as it is passed on to customers. Ultimately, the Tribunal found no merit in the Revenue's appeal and rejected it based on the discussions and legal principles presented.

In summary, the judgment addressed the valuation of Ceramic Glazed Tiles and the abatement on quantity discount. It highlighted the importance of determining assessable value based on normal factory gate sale prices and the deductibility of known discounts at the time of clearance. The Tribunal upheld the Commissioner's decision, emphasizing consistency with legal precedents and established principles. The judgment also affirmed the assessee's privilege to offer discounts as deemed appropriate, as long as they are passed on to customers.