2015 (10) TMI 1945 - AT - Central Excise

Valuation of goods - deductions on account of turnover discount and interest on receivables - Held that - interest on receivable already stands accepted by the Tribunal as an admissible deduction. The Revenue s contention that such interest was not actually reimbursed to the customer cannot be appreciated inasmuch as there is no question of reimbursement of interest to the customer. In any case, Tribunal having allowed the said deduction and the Revenue having not challenged the earlier order of the Tribunal before higher authority is debarred from taking the said ground now. - issue relates to bona fide interpretation of law. Merely because the assessee s stand in respect of their claim of deduction on account of commission to selling denial has not been accepted by the Tribunal, the same would not call for any penal action against them. - Decided against Revenue.

Summary

Issues:
- Challenge to order passed by Commissioner (Appeals) regarding deductions on turnover discount, interest on receivables, and commission on sales.
- Dispute over the assessable value calculation due to rejected deduction on commission on sales.
- Revenue's objection to the deduction of interest on receivables not reimbursed to the customer.
- Disagreement with the penalty set aside by Commissioner (Appeals) despite one deduction being held inadmissible.

Analysis:
1. The Tribunal's initial order remanded the matter to the Commissioner (Appeals) to re-examine the assessable value calculation due to the incorrect inclusion of the sale value. The Commissioner (Appeals) recalculated the assessable value after allowing deductions for turnover discount and interest on receivables, excluding the commission on sales, which was rejected by the Tribunal.

2. The Revenue did not contest the computation by the Commissioner (Appeals) but objected to the deduction of interest on receivables not reimbursed to the customer. Additionally, the Revenue was displeased with the penalty being set aside despite one deduction being disallowed.

3. The Tribunal upheld the admissibility of interest on receivables as a deduction, emphasizing that reimbursement to the customer was irrelevant. The Revenue's argument against this deduction was dismissed since they did not challenge the Tribunal's earlier decision at a higher authority, thereby precluding them from raising the issue now.

4. Regarding the penalty, the Tribunal determined that the disagreement over the commission on sales did not warrant penal action against the assessee, as it pertained to a genuine interpretation of the law rather than intentional misconduct.

5. Ultimately, the Tribunal found no flaws in the Commissioner (Appeals)'s order, leading to the rejection of the Revenue's appeal. The decision highlighted the importance of adhering to previous Tribunal rulings and the distinction between legitimate deductions and penal consequences based on the interpretation of tax laws.