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TMI Blog1997 (5) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... e period 1-4-1987 to 30-9-1987. In the course of inspection and physical verification on 23-12-1987, it was found that gears valued at Rs. 5,225.00 were in shortage, gears valued at Rs. 17,295.00 and Rs. 1,21,965.00 were not accounted for, gears valued at Rs. 4,900.00 had been cleared without observing central excise formalities and without payment of duty. It was also found that over and above the price declared in the price lists, appellant had collected Rs. 12,54,073.00 from various buyers as per debit notes No. 43 to 55, dated 30-11-1987 as sales promotion expenses incurred by the appellant in the territories of the respective buyers. The Department was of the opinion that this amount should have formed part of the assessable value and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h also explained that in March, 1987 appellant introduced four different schemes for sales promotion but failed to refer to the same in the price lists and did not by mistake seek abatement of the same in the price lists. It was also asserted that the expenses incurred in connection with the four schemes were such that abatement would have to be given for the same. The four schemes consisted of, quantity discount by way of supply of one set free of cost against purchase of thirty sets, facility for free replacement up to 0.75% on the total sales of all models of goods (warranty), sticker incentive bonus to customers who produce stickers affixed to the components of the manufactured goods at the end of the year and target discount or bonus r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posing addition of the extra amount to the assessable value, it would certainly be open to the appellant to plead that the extra amount or any part of it could not be included in the assessable value. 7. The plea of the appellant has a curious aspect. Of the four schemes referred to in the reply, one was by way of warranty for replacement of parts to a limited extent. Any amount spent to meet the warranty requirement would certainly be part of the assessable value. Another scheme related to target discount or bonus. If there was really such a discount made known to the wholesale dealers and implemented, the amount representing the discount cannot be included in the assessable value. So far as the scheme relating to quantity discount of 1: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of the four schemes. However, after the reply was furnished to the show cause notice, the adjudicating authority should have called for proof from the appellant which was not done. In these circumstances, we are inclined to have the matter examined afresh with liberty to the appellant to produce evidence making it clear that the burden is on the appellant to establish on what exact account the amounts were recovered under the debit notes and also to prove that any part of the amount was referable to admissible discounts. We make it clear that other aspects dealt with in the impugned order have not been questioned before us and we are not interfering with the same. Since the other aspects are not challenged, imposition of penalty on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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