1997 (6) TMI 158

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..... lowed abatement as in terms of the relevant laws in force under which these charges are levied, these amounts are not required to be recovered from the customers. The learned lower authority in this regard in Para 19 has observed as under : 19. The essence of disallowance of the deductions claimed lies in the fact that there is no proof of actual expenditure on the above heads and the amounts claimed on the above heads have been fixed by the Oil Co-ordination Committee with no relation to the actual amount spent or spendable under the said heads. These represents the amounts sought to be collected in order to reimburse the dealers towards expenses incurred even towards irrecoverable tax dues such as the State Surcharges, RPO Charges, RPO .....

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..... Government of India and the appellants are paying duty and do not dispute the fact regarding the duty paid based on the various elements which are set out in this Para 9 in respect of various products. He has pleaded, in the background of the arrangement for sale it cannot be said that the appellants satisfy the parameters for related persons as set out under Section 4 of the Central Excises and Salt Act. The appellants, he pleaded have paid the duty on the total amount recovered by them other than on the amount collected and which are in the nature of taxes, freight and discount. He has pleaded that in terms of the impugned order and duty is sought to be demanded in respect of taxes, freight and the discount which are allowable under Secti .....

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..... llants. 5. The learned JDR for the department has pleaded that the appellants had not furnished these figures before the lower authority as could be seen from the order. He has pleaded that in the absence of that, the duty has been rightly demanded from the appellants. 6. The learned Advocate at this stage for the purpose of the stay petition pleaded that he is reserving all his pleas to be adduced in depth at the time of final hearing and he is prepared to pre-deposit a sum of Rs. 1 crore. 7. The learned JDR has pleaded that the Appellants are a Government Company and they can easily afford to pay the amount as demanded. 8. We have considered the pleas made by both the sides. We observe that there is considerable force in the pleas .....

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