9911796707
TMI Blog1994 (10) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... n part II during the period between 18-2-1992 and 25-11-1992 for clearance of goods, claiming different deductions on the list price. Price lists are filed separately for each consumer together with copies of the purchase order/rate contract. The Assistant Collector as per the impugned orders allowed deductions claimed in respect of sales to Government agencies but disallowed deductions in respect of sales to private buyers on the ground that the private buyers comprise a single class and that the appellants cannot give different deductions to some class of buyers. While upholding the view of the Assistant Collector, the Collector (Appeals) observed that uniformity is the sole criteria and there can be no valid reason for variation of price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in prices to be explained more than merely it being commercial consideration and uniformity is the sole criteria. She said that trade discount is not in uniformity or is given at different rates to different purchasers; cannot by itself, disqualifying the discount from being excluded for determination of true assessable value so long as the lack of uniformity is prompted on any extra- commercial consideration. Industrial consumers need not be of one class of buyers and now this issue has been settled by the decision of the Tribunal in the case of M/s. Travancore Cements Ltd. v. Collector of Central Excise - 1994 (71) E.L.T. 498 (Trib.) = 1994 (1) RLT 212 (Trib.) wherein it was held - there can be more than one normal price in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as such has not been defined in the Act, normal practice in the wholesale trade is the criterion to ascertain different class of buyers. He said that the Department was justified in not accepting the different price or different discounts to the same class of buyers among industrial consumers since consideration for such variation was not made known and there is no rational nexus between discount and commercial consideration. The case law cited by the appellants Counsel in the case of M/s. Travancore Cements Ltd. (supra) and Goramal Hariram Ltd. are not applicable since they were dealt with the issue of regional discount on commercial consideration due to local taxes. He said that to claim discount it should be established by an agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on commercial consideration. 5. We have considered the rival submissions. The first point to be considered in this case is whether there can be more than one normal price among different buyers of the same class of buyers viz. industrial consumers. On going through the facts and circumstances of the case, we find that this issue has been settled by the decisions in the case of M/s. Travancore Cements Ltd. and Goramal Hariram Ltd. (supra) and accordingly there can be more than one normal price in respect of industrial consumers and price charged from these different class of buyers is the normal price in relation to each of them provided the contract is genuine. In the instant case contract was not doubted and no case has been made out by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly allowed, cannot be denied because excepting the above statutory conditions the imposition of any other condition such as uniformity of discount is extra- legal. Moreover, the present Section 4 contemplates admissibility of different assessable values for same type of goods, therefore, in principle it also accepts the possibility of varying rates of trade discounts. The deduction for trade discount is thus permissible even if it is not given uniformly because the condition of uniform trade discount is unwarranted and reading of such a condition in Section 4 of the Central Excises Salt Act, 1944 clearly contravenes the provisions of Section 4 as the words `trade discount in this Section have not been qualified by the word `uniform . Ev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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