9911796707
TMI Blog2005 (8) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... rs by giving them different amounts of discounts. They were served with seven periodical show cause notices raising demand of duty of Rs. 85,36,435/- on the ground that such different trade discounts to different buyers were not permissible inasmuch as they were not uniform and, as such, the same cannot be deducted from the assessable value. The appellants contended that the different amounts of discounts were being given to their customers, who were different categories/classes of buyers and such discounts were permissible in terms of the settled position of the law as declared by the Tribunal in various decisions. 2. The Assistant Commissioner adjudicated the said show cause notices and observed that trade discounts need not be uniform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder proviso (i) of Section 4(1)(a) what is the normal practice of wholesale trade has to be determined on trade considerations. As regards the sale by the assessee at different prices to different classes of buyers , it appears reasonable to assume that it is for the assessee to classify his buyers according to his commercial considerations, of course, the classification has to be rational and identifiable, based purely on commercial considerations. It could not be arbitrary or capricious. If the classification of his buyers by the assessee is within the basic scheme for determination of the assessable value under Section 4 of the Act, then no objection could reasonably be raised by the Central Excise department for determining the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various reasons, such as, status of buyers, class of buyers, quantity of goods sold, favourable and unfavourable market condition in a particular region or at a particular point of time, financial crises, cut throat competition and introduction of a product in a new region. These discounts were based upon the commercial consideration. It has been further argued that the appellate authority has set aside the order of the Assistant Commissioner on the ground that there were different discounts within the same class of buyers. Ld. Advocate submits that varying discounts to different customers based upon the commercial consideration is permissible as held by the Tribunal in the case of Grasim Industries Ltd., v. Commissioner of Central Excise, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
