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TMI Blog2003 (1) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... t reimbursed in respect of unutilized FOI period (cash discount), and (3) Commission paid to sales representatives. After aggregating the discounts actually granted and averaged against the total clearances the assessee claimed 10% abatement as PRE. The claim of the assessee under the above three heads was rejected by the assessing authority and affirmed by the Commissioner (Appeals). 3. The appellant is manufacturing and selling woollen as well as man-made fabrics. The fabrics manufactured by the appellant were cleared for home consumption as well as for export. The goods cleared for home consumption are sold to wholesale dealers/buyers. The orders are placed directly on the appellant. In respect of those orders which are accepted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of actual amount paid as turnover discount, commission to sales representative and reimbursement of interest. 7. The Commissioner (Appeals) rejected the claim for turnover discount for two reasons. It was held that any discount which is allowed in accordance with the normal practice of wholesale trade at the time of removal in respect of the goods sold or contracted for sale is admissible for exclusion from the whole of assessable value provided discount is not refundable on any account whatsoever it may be. It was also held that the method of allowing discount for the purpose of payment of duty at 10% of the assessable value would amount to allowing deduction on equalized or average basis to all types of buyers irrespective of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the end of the year is permissible under law. This is the procedure followed by the present appellant. But the learned DR contended that even if the above principle is accepted, the claim for deduction must be on the basis of the actual amount of turnover discount paid to the dealer and not on equalized or average basis. 9. The claim put forward by the assessee for deduction in respect of interest on receivables is supported by a decision of this Tribunal in CCE, Hyderabad v. Novapan Industries Ltd. - 2001 (137) E.L.T. 662 following an earlier order, namely, Final Order No. 2823/99, dated 4-11-99 in ICI India Ltd. v. CCE, Hyderabad. But here also the contention raised by the learned DR is that deduction cannot be claimed on an equalized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Supreme Court was dismissed. Therefore, it is not open for this Tribunal to give a different interpretation to the decision in Coromandel Fertilizers Ltd. 12. In Coromandel Fertilizers Ltd., the Supreme Court has taken the view that the commission which is paid by the assessee to the selling agent is for service rendered by them as agents. Therefore, such commission cannot be considered in the nature of trade discount which may qualify for deduction in determining the assessable value of the goods. In Raymond Woollen Mills case while considering the claim for deduction on account of bonus paid to the dealers reference is made to Coromandel Fertilizers Ltd. and it was observed that the ratio of the decisions of Supreme Court t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. - 1984 (17) E.L.T. 329 (S.C.) and submitted that the nomenclature given to the discount could not be regarded as decision of the real nature of the discount. There can be no quarrel with this proposition. But it is equally well settled that in the determination of the normal price for the purposes of levy of excise duty, it is only a normal trade discount which is paid to the purchaser which can be allowed as a deduction and commission paid to selling agents for services rendered by them as agents cannot be regarded as a trade discount qualifying for deduction (Coromandel Fertilizers Limited v. Union of India and ors. - 1984 (17) E.L.T. 607. 14. The above observation would clearly show that the Supreme Court had understood the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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