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TMI Blog2002 (9) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... 800 cars Omni Vans and Rs. 2000/- per Esteem cars. The Central excise duty was paid on these vehicles on the basis of assessable values which excluded the special rebate from the sale price of the vehicles. Under the orders impugned in these appeals, the Commissioner of Central Excise has held that it was not permissible to reduce the rebate from the price of the automobiles while fixing the assessable value of the automobiles. Consequently, duty short levied on account of such reduction has been demanded in addition to imposing penalties equal to the duty short levied and interest on the short levy. 2. The finding regarding ineligibility of the special rebates for reduction has been reached on the ground that the special rebate scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iples of any other account maintained by any person in any bank or financial institutions. I have also found that the dealer was not even permitted to use the amount of that Fund even for the purpose of credit for vehicles dispatches by MUL to the dealer. My views are also based on the fact that Clause 5.5 of the Bulletin dated 11-4-97 specifically state that no lien shall be entertained on the Dealers Reserve Fund Account and the amount of the fund was available to dealers only after the closure of the dealership relation with MUL. There is no force in the party plea that the amount of fund not available to dealers at the end of the dealership agreement as there was specific time frame for the dealership and thus amount of the fund was ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condition in no way altered the position that the rebate/discount was actually given to the dealers. The rebate was always deposited into the separate security deposit account of the dealers and Maruti paid an interest @ 10% on the security deposit. It has been further stated that in the books of accounts of M/s. Maruti Udyog the rebate amount remained as a liability and the books of accounts of the dealers showed the special rebate amounts as income. The learned Counsel for the appellant pointed out that the rebate was actually paid and its receipt is also clear from the fact that the dealers included the special rebate amounts as their income and paid income tax accordingly. Further, part of the rebate amount (Rs. 330/- to Rs. 385/- per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Counsel also pointed out that the liability to return the deposit remains proved by the fact that the entire amount in the reserve fund of Enpack Motors (one of the dealers) was returned to it upon the termination of its dealership. The learned Counsel for the appellants has relied on the following observations of the Apex Court in support of this contention :- 34. Section 37(1) uses the expressions, in relation to forfeiture, any sum collected by the person shall be forfeited . What does collected mean here? Words cannot be construed effectively without reference to their context. The setting colours the sense of the word. The spirit of the provision lends force to the construction that collected means collected and kept as hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Oxford Dictionary, it means a deduction from the bill or amount due given especially in consideration of prompt or advance payment or to a special class of buyers . Now, according to the latter part of sub-clause (ii) of Section 4(4)(d) such trade discounts, as are not refundable under any circumstances, and are allowed in accordance with the normal practice of the wholesale trade at the time of removal of such goods, are to be excluded from the value of the goods . 6. It is clear from the records that the appellants have granted special rebate as claimed to their dealers in respect of the three varieties of automobile covered by the rebate scheme. It had also intimated the Central Excise authorities in 1998 about the scheme. The amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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