9911796707
TMI Blog2000 (1) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It also provides a 5% commission to be given to Central Acetone in respect of the goods sold by the appellant to its other buyers. The department was of the view that the agreement was an agency agreement between appellant and Central Acetone. The discount of 15% was subsequently reduced to 10%. Appellant claimed deduction from the assessable value of this commission on the ground that it was a discount. The department was of the view it is not a discount but a commission paid to its agent which is not eligible for deduction. Notice was issued proposing disallowance of this deduction. After considering the reply filed by the appellant the Assistant Collector confirmed the disallowance. His order, on appeal having been confirmed by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through Central Acetone and for such sales Central Acetone will be eligible for 5% on the actual sale price. Clause 15 provides that all advertising and publicity expenses will be borne by Central Acetone. The 15% Commission referred to in clause 11 payable to Central Acetone in consideration of its services, is therefore nothing other than the commission to an agent. 4. The fact that clause 9 provides that any complaint regarding quantity or quality of the product after its delivery to the agent will be upon the agent and not upon the appellant does not itself render the agreement incapable of a consideration that as a sole selling agreement. We are not aware of any proportion that requirement in all cases of the agency agreement the li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that where the goods are directly cleared from the factory the liability for any deficiency of quantity or quality continues to be upon the appellant. This underlines the conclusion that the agreement provides for taking into consideration the volatile nature of the product. As we have indicated, clauses 14 and 15 respectively provides for the commission payable to Central Acetone on goods sold by the appellant to other buyers and the liability of Central Acetone to undertake advertising and publicity respectively are significant pointers to the true nature of the agreement. It is also not possible to agree that the goods were actually sold to Central Acetone by the appellant. Clause 6 of the agreement indicates that Central Acetone will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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