9911796707
TMI Blog2005 (6) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a differential duty of Rs. 86,39,756/- has been confirmed by the Additional Commissioner including penalty. The Commissioner (Appeals) has reduced the penalty from Rs. 86,39,756/- imposed under Section 11AC to Rs. 50 lakhs and from Rs. 1 lakh imposed under Rule 173Q to Rs. 75,000/- 2. It is the contention of the appellants that they are manufacturers of Hermetically Sealed Compressors falling under CH 8414.30. Apart from direct sales from the factory gate, the compressors are also cleared from the factory on payment of duty to the depots from where they are sold to the dealers. During the lean season i.e. September to December, when the sale of compressors is less, they announce special scheme called as Advance Booking Scheme (ABS in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel that the issue is settled in their favour by the OIA No. 1/2004, dated 20-1-2004 passed by the Commissioner (Appeals) on this issue and the same has not been challenged by the Revenue. It is also contended that after 1-4-2001, the assessee had been clearing the compressors meant for sale to the dealers opting for ABS at the assessable value arrived at after deducting the discounts offered under the scheme. This fact had been informed to the department vide letter dated 31-3-2001. They had also filed a price declaration on 31-3-2001 effective from 1-4-2001 specifically for clearances covered under the ABS. They maintained separate accounts for the compressors cleared for ABS dealers. They had also informed the depots to keep separate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal has held that special discount granted to specific contracting parties is an admissible deduction. He also refers to Swastic Fragrance v. CCE - 2000 (121) E.L.T. 375 (T) wherein the Tribunal has held that discounts allowed under an incentive scheme are eligible for deduction from the assessable value. He also submitted that penalty is not leviable in the facts and circumstances. 3. The learned SDR reiterated the departmental contention and contended that the dealers under the ABS scheme are not a separate class of buyers. Therefore, they are not eligible for deductions. He also reiterated the findings given by the Commissioner. 4. On a careful consideration, we find that the contentions raised by the learned Counsel is req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Perfect Circle Victor Ltd. apply to the facts of the case. The ratio of CCE v. Dharampal Satyapal Ltd. also is on this issue itself. We also find that the discount given by the appellants is to be considered as a special discount granted to specific contracting parties and is an admissible deduction as held by the Tribunal in the case of Nestle (India) Ltd. v. CCE and that of Swastik Fragrance v. CCE. The order of the Commissioner is not sustainable in law in the light of the judgments and discounts given by us supra. The same is set aside as not legal and proper. The appeal is allowed with consequential relief, if any. (Operative portion of this Order was pronounced in open Court on conclusion of hearing) - - TaxTMI - TMITax - Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
