1998 (4) TMI 198

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..... hal, Advocate, for the Respondent. [Order per : Justice U.L. Bhat, President]. These appeals are filed by the Collector, Central Excise, Rajkot against several orders passed by the Collector (Appeals), Ahmedabad modifying the several orders-in-original passed by the Assistant Collector, Jamnagar. The Assistant Collector disallowed deduction of the discount paid by the respondent-manufact .....

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..... ent agents and the so-called discount paid to the distributor is nothing but commission paid to agents and therefore is not admissible for deduction. The Collector Appeals, on the other hand, took the contrary view, holding that the distributors are wholesale buyers of the goods for price paid, that the transactions are on principal to principal basis and at arms length and therefore the discount .....

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..... tributors to the respondent. The clause in the agreement requiring the distributors to promote sales is not merely in the interest of the respondent, but also in the interest of the distributors. The manufacturer is interested in maximising sales; the distributors are also interested in doing so. The fact that the distributors, when they sell the products to retailers or consumers can not sell at .....

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