1994 (9) TMI 179

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..... the manufacture of steel ingots and steel castings for the purpose of lining the moulds before pouring molten steel into them. In their sales of this compound to Tata Iron and Steel Co., the appellants collected in their invoice the fixing/application charges for providing the service in the form of labour force who are employed to pour the chemical into the moulds. The jurisdictional Assistant Collector held that the application/fixation charges lend marketability to the product and hence ordered that these charges be added to the assessable value of the goods. The Assistant Collector s order was upheld in appeal leading to the present appeal. The other issue is regarding the trade discount offered by the appellants on the sale of the good .....

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..... he ld. Consultant, further, argued that it is equally well-settled that under Section 4 of Central Excises Salt 1944, trade discount can vary between dealers in different regions or within same region. 3. Shri A.K. Singhal, ld. JDR, while reiterating the reasoning of the lower authorities urged that it has been correctly held that the appellants have failed to establish their claim for the deductions from the assessable value with relevant material evidence. 4. On a careful consideration of the submissions made, it is seen that the appellants have a case regarding exclusion of fixation/application charges from assessable value. These charges are separately invoiced and are on account of the employment of labour services for applying t .....

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..... y the appellants to different buyers, yet they failed to establish by way of reference of some agreement in terms of sale that the buyers belong to different categories and the type of deduction is known in advance. In other words, the appellants have to establish with acceptable evidence that the different discounts given to different sets of buyers are based on well-defined commercial considerations so as to rule out the possibility that these discounts based on considerations other than proper trade criteria in a transaction at arm s length. The appellants, while stating the position in law in this regard, have not put forth any evidence to show that the varying discounts are demonstrably in accordance with these provisions in law. Ther .....

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