1999 (5) TMI 615 - AT - Central Excise

Summary

Issues:
1. Entitlement to deduct various elements from the assessable value of goods.
2. Eligibility of discount on interest receivables.

Analysis:
1. The respondent, engaged in manufacturing cosmetics and soaps, sold goods at factory gate but removed them to premises of clearing and forwarding agents, resulting in two depots. The question was whether the assessee could deduct elements like quantity discount, cost of packing, interest on finished goods, handling expenses, remuneration of agents, and discount for damages from the assessable value. The Collector (Appeals) allowed deductions on most issues except for special packing costs. The respondent conceded that certain deductions were not entitled, as per a Supreme Court judgment. The Tribunal upheld the deduction for quantity discount, considering it a reduction in price for specified quantities. The discount for damages was also allowed based on past judgments, dismissing the department's concerns about goods post-sale.

2. In Appeal E/76/95, the eligibility of discount on interest receivables was questioned. The Tribunal referred to past orders in the same case, where discounts for damage during transit were allowed as deductions. The representative cited other judgments supporting this view for various assessees, including M/s. Bombay Soap Factory. The Tribunal dismissed the appeals filed by the department, following the precedent set in earlier cases like Assam Valley Plywood Pvt. Ltd. and Tungabhadra Industries Ltd. The appeals were thus dismissed, affirming the eligibility of certain deductions and discount elements in the assessable value of goods.