9911796707
TMI Blog2005 (3) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... the same issue, the Department had issued demands for earlier period from May 1997 to March 2002 and also for subsequent period from 1-1-2003 to 30-9-2003. This demand had been confirmed by the adjudicating authority. However, on appeal, the Commissioner (Appeals), vide OIA Nos. 71 72/2004 allowed the assessees appeals and upheld the grant of special discount of 15% on the net sale price realised in respect of orders booked by them vide their Agreements in respect of MTC. The special discount of 15% was given to MTC who is dealer, in addition to 25% of normal discount. However, the department took the view that this 15% discount given to MTC as a dealer is an ineligible deduction from Section 4 value inasmuch as it was actually the commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , this Bench, vide Final Order No. 1591/2004, dated 29-9-2004 [2005 (181) E.L.T. 66 (T)], on a similar contract with the same authorized dealer viz. M/s. Mehta Trading Company, Mumbai, had granted the special discount of 15% and such grant as special discount has been upheld by the Tribunal. He submits therefore, that the Tribunal ruling in the case of Sri Bhavani Castings Ltd. would clearly apply to the facts of the case. 4. The learned SDR defended the order and the allegations brought by the department and submitted that this special discount of 15% cannot be granted as it was in the nature of commission for the services rendered and hence the confirmation of demands is justified. 5. On a careful consideration, we notice that for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kists. In respect of the orders booked by M/s. MTC, the supplies were made directly from the appellants to the buyers and in respect of these transactions, the abatement of 20% (normal trade discount) was only claimed and duty was also paid after deducting 20% from the list price. However, in respect of these sales, M/s. MTC was allowed a discount of 16.88% and the difference in discount liable to M/s. MTC and the discount allowed to the buyers will be credited to the account of the Authorised Stockists (MTC) on realisation of the due amounts. As regards the sales which are directly made to M/s. MTC, the appellants allow higher discount of 33.5%. The adjudicating authority holds that there is no justification for allowing the higher discoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deducting the discount allowed from the lists of price. In this case, the Department has not shown that the appellants are claiming higher discount but not allowing the same to the buyer. They have also not established any flow back of funds from the buyer to the manufacturer. Even if the appellants allow higher discount to M/s. MTC on commercial consideration, there is no legal basis for the Department to deny the same in arriving at the transaction value. As long as the discount is allowed and shown in the invoice, the Department is not justified in adding the same to the assessable value. In these circumstances, the impugned Order-in-Original is not sustainable. Moreover, earlier the Department had already gone into the admissibility of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
