2017 (9) TMI 21 - AT - Central Excise

Refund of eligible abatement of quantity discounts - department was of the view that the appellants are not eligible to claim any abatement as quantity discounts from the sales effected at the depot and a show cause notice was issued proposing to reject the refund claim - Held that - issue whether appellants are eligible for such quantity discount has been settled by the Larger Bench of the Tribunal in the case of India Laboratories Pvt. Ltd. 2007 (5) TMI 19 - CESTAT,AHMEDABAD , where it was held that Quantity discount not available on goods contained in Multi-pack - demand upheld - appeal dismissed - decided against appellant.

Summary

Issues:
1. Eligibility for quantity discounts on medicaments for excise duty refund claim.

Analysis:
The case involved the appellants engaged in manufacturing ayurvedic and allopathic medicaments who filed a refund claim for excise duty amounting to &8377; 4,87,622 for the period April to September 2005. The claim was based on the contention that they had paid full duty without availing any abatement towards quantity discounts. The department, however, disagreed, stating that the appellants were not eligible for such abatements on sales made at the depot. The original authority and the Commissioner (Appeals) rejected the refund claim, leading to the current appeal before the Tribunal.

During the proceedings, the appellant's consultant acknowledged that a similar issue had been decided against the appellants by a Larger Bench of the Tribunal in a previous case. The consultant mentioned that the decision had been appealed to the High Court of Gujarat and was pending consideration. The department reiterated the findings of the impugned order, leading to a hearing where both sides presented their arguments.

The show cause notice alleged that the appellants were not eligible for further abatements, specifically quantity discounts, as they had already availed a 40% abatement on the retail sale price. The appellants had claimed quantity discounts based on an auditor's certificate, but the Tribunal referred to the Larger Bench decision in another case to establish that the concept of quantity discounts did not apply in determining value under Section 4A for excise duty purposes. The Tribunal upheld the impugned order, stating that no interference was necessary, and dismissed the appeal accordingly.

In conclusion, the Tribunal found that the appellants were not eligible for quantity discounts on the medicaments for the purpose of excise duty refund claims, based on the precedent set by the Larger Bench decision. The impugned order rejecting the refund claim was upheld, and the appeal was dismissed.