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TMI Blog2005 (7) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... ther plant situated in the same industrial estate in Ambad MlDC Nasik. 1.2The goods are sold to dealers at 35% discount and are transferred to the other unit, on discounted price, amounting to with about 40% discount. The department has questioned the valuation on such transfer invoices at 40% discounted prices and re-determined the values ignoring the large quantities involved in such interplant transfers, than in sales at 35% discount to outsiders as well as the claim that goods transferred did not contain Plastic Cover and packaging as was the case for goods sold to an independent customer. 1.3The show cause notice dated 22-11-2002 for the period November 1997 to March 1999 demanded differential duties and proposed penalties and was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capacitor, it is noticed that the same is not sold to the customers but consumed captively at their sister unit for the manufacture of 27 & 36 KVAR LTMS/LTSC, hence no discount is admissible. The valuation is to be done on the basis of cost construction method without any discount, when there is no sale. & thereafter as regard packaging and quantity discount it was held "As regards price variation it is the contention of the assessee that, the capacitors sold to the customers were with plastic caps and to their own unit they have cleared without plastic caps. On verification of the invoices raised on the customer and issued for clearances to their own unit no such description as goods with plastic caps or without plastic caps has been not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit where clearances are in hundreds (i.e. 100, 200 & 500 pieces), thus this is quantity discount. In this regard, I find that, the discount claimed in respect of clearances for captive consumption is also admissible on par with the discount given to other customers. As the clearances for captive consumption are huge in number therefore this being quantity discount admissible under law. The discount in various forms like trade discount, quantity discount, cash discount, etc. are admissible discounts deductible from the selling prices, provided that the prices are normal prices for other customers as well as for captive consumption or for clearance to sister unit. In the case of M/s. Gwalior Rayon Engg. Co v. UOI reported at 1982 (10) E.L. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the demands of differential duty be confirmed. We have considered this submission. However the S.C. decision cannot be applied in this case, since quality sold and quantity transferred, is vastly different; and quantity discounts have to be considered and granted. 2.3The transfer is from one Plot in the same MIDC estate to another, belonging to same appellant, for captive consumption; if that be so, the goods should be considered to be moving within the same factory separated by a Public Road etc. and have to be considered as movement within one licensed factory as per Board's instructions on the subject of one licence under Central Excise Law when two or more such units of same owner are in same town/village (ref. CBE & C F.No. 10/2/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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