9911796707
TMI Blog1994 (9) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... against the adjudication order on the price list submitted by them, by the Assistant Collector of Central Excise, Saharanpur dated 30-5-1988. The facts briefly are that the appellants manufactured paper under Tariff Item 17 of the old Central Excise Tariff. In a price list submitted by them No. 1/81 and supplementary price list No. 6/82, they claimed deduction from the assessable value on certain elements of cost on the ground that these were post manufacturing expenses. The Assistant Collector returned the price list for giving full detail on the basis of price worked out as the Assistant Collector found that the prices declared were on the lower side than those declared previously. The appellants, thereupon, took the matter to the Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... special packing. The High Court upheld the order of the Assistant Collector. Being aggrieved by the order of the High Court, the appellants filed Special Leave Petition before the Supreme Court. By its order dated 8-2-1994, the Supreme Court disposed of the SLP directing the appellants to file the present appeal and requiring the Tribunal to dispose of the same and for purpose of maintainability of the appeal, the Supreme Court observed that the Tribunal shall treat the matter as an appeal remitted to it. The Supreme Court observed that the adjudication of the Tribunal shall be final. 2. The ld. Counsel, Sh. V. Sridharan appearing for the appellants, submitted that three elements in dispute are additional trade discount, trade subsidy and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discount of Rs. 300/- per tonne on all supply of paper made to the dealers. Therefore, the discount was uniformly available. The ld. Counsel also pointed out that credit notes which are on record clearly show that the additional amount of additional discount was given to the dealer on the quantity supplied against the bills. In respect of freight subsidy, the ld. Counsel submitted that the Assistant Collector has disallowed freight subsidy on the ground that the prices shown in column 3 of the price list are not inclusive of cost on transportation from the factory gate to the place of delivery. The ld. Counsel submitted that credit notes have been issued with regard to the freight which would show that the freight was a part of the price w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts have claimed in column 11 thereof that they were restricting the declaration to include manufacturing cost and manufacturing profit. The price lists had the effect of lowering the earlier prices. The appellants failed to disclose the details of discount and freight. The ld. S.D.R., further, pointed out that the discount is not also uniform. They have, thus, stated in their written submissions before the Assistant Collector that the additional discount to the dealers in the various regions had to vary from region to region. Therefore, the discount was not uniform and hence inadmissible. The discount was also not known at the time of clearance. They had not disclosed the fact that the price includes the element of freight subsidy and frei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court. In that case also the department s case was that additional discount is not reflected in the invoices but were given by issuing credit notes in favour of the dealers. In the present case also, the situation is similar where the appellants claimed that the additional discount, though not shown in the invoices, is given by way of credit notes and they have also referred to certain circular letters to their dealers which makes it known to them that according to their policy as the additional discount will continue to be granted. In such a situation, the observations of the Bombay High Court are of relevance to the case. It is noted that in that case the Bombay High Court had observed that the assessing authority should re-assess the du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder to compete in the market and attracting customers from far-flung areas, they have adopted this method. They have stated that this was made known well before the goods are sold and that because of this only the outstation buyers purchased papers from them. They have referred certain freight credit notes. Admittedly, the evidence of credit notes had not been placed before the Assistant Collector nor have the appellants substantiated as to how the availability of the facility of freight subsidy was known to their customers. In such a situation, it will be in the interest of justice to direct the Assistant Collector, having jurisdiction to re-examine this issue of freight subsidy, to determine whether the appellants have made out a case wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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