9911796707
TMI Blog2000 (8) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... cords, I find that what is intended in the appeal is that the additional margin should be added to the assessable value and differential duty collected on that basis. On examining the merits of the departmental appeal, I find that the department has admitted that the amount of additional margin was not received in cash. The point agitated in the appeal is that extra money was generated at the hands of the authorised dealers and it was used for and on behalf of the Pond s (India) Ltd. and as such excise duty is payable taking into account such additional consideration. On going through the impugned order of the AC, I find that the extra margin which is construed as additional consideration was used by the authorised dealers in low sales tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order. 10. However, the issue has to be decided strictly with reference to the legal position. In this context, the citations given by the respondents are very relevant. According to the three orders of the Tribunal cited by the respondents, the expenses incurred by the authorised dealers to augment their own sales and thereby their own profit are legitimately to be borne by them and there is no obligation on the part of the manufacturer to incur such expenses. 2. The grounds taken in appeal are as under : (1) On the question of evidentiary value of the allegations contained in the show cause notice, the investigations conducted in the case have clearly brought out as to how the assessees, M/s. Pond s (India) Limited wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... timated the same as per a method of calculation given by them. The said amount are additional margin at the hands of such dealers which are required to be spent as per the directions of the assessees. The assessees have accordingly calculated the additional margin, taking into account the total sales in each of low tax areas and estimated the same for the purpose of arriving at such additional consideration. Hence there is no doubt regarding the quantum of margin of additional consideration received by the company and there may be no need to conduct further investigation in other areas or with other dealers. The demand could be made on the basis of the amount of additional consideration provided by the company. 3. There is definitely an i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual benefit of the assessee and the dealer and that that such agreements at arms length and genuineness thereof not in dispute, such trade discount could not be refused. Therefore in the present appeal when we find that there is no allegation or whisper regarding challenge to the agreement with the dealers to be at arms length and the genuineness admitted. The sale promotion and expenses on salaries as held by the Commissioner (Appeals) in the para 10 of his order, which is extracted herein above which, clearly brings out that the expenses incurred by the dealers to augment their own sales and thereby increase their own profit has to be borne by them and there is no obligation on the part of the manufacturer to incurr such expenses. We cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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