2000 (10) TMI 330

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nt to this appeal is M/s. Indian Petrochemical Corporation Limited (IPCL for short). We are concerned with the hydrocyanic acid which obtained by it as a by product and sold it to M/s. Gujarat State Fertiliser Corporation Limited (GSFC for short) and Gujarat Alkali Chemicals Limited (GACL for short). The assessee deducted Rs. 4000/- per MT as discount in this case of goods sold to GACL and Rs. 5 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ld fetch. He therefore permitted the discount and allowed the assessee's appeal setting aside the Assistant Collector's order. Hence this appeal before us. 2. The ground in the department's appeal is that the reason for higher discount given to GSFC is attributable to the fact that the GSFC has created a facility for storing the gas and supplying it by pipeline to GACL. If this facility had not .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ity available to the respondent it would have necessarily have led to incur expenditure on this extra facilities is a matter of speculation. It might have decided to dispose of the goods by some method. The judgment of the Supreme Court in Metal Box India v. CCE - 1995 (75) E.L.T. 449 referred by the department is not relevant. The Supreme Court in that judgment held that discount of 50% instead o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X