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TMI Blog2014 (2) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... o been imposed by the adjudicating authority upon the appellant under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944. 2. The issue involved in this appeal is whether Central Excise duty is required to be recovered from the appellant for those cash discounts availed at the time of removal/ sales by the appellant for which prompt payments are not made by the customers within the specified period as per the definition of 'Transaction Value' given in the present Section 4 of the Central Excise Act, 1944. The period involved in the present proceedings is from November 2006 to March 2010. Prior to November 2006, appellant was discharging Central Excise duty on the differential amount of cash disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayable, whether payable at the time of removal/ sale, or after removal/sale by the buyer than that amount received by the appellant should discharge Central Excise duty as 'Transaction Value' under new Section 4. Another argument put forth by the learned Commissioner (AR) is that reliance placed by Larger Bench in the case of CCE Ahmedabad vs. Arvind Mills Limited [2006 (204) ELT 570 (Tri. LB)] on the WTO clarification, may not be applicable as the same was given by WTO with respect to Section 14 of the Customs Act, 1962 which was similar to old Section 4 of the Central Excise Act, 1944 and has no provision like a consideration received after sale/ removal as is existing in the 'Transaction Value' given under new Section 4 of the Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not a related person and the price is the sole consideration for the sale With effect from 01.07.2000 Section 4. Valuation of excisable goods for purposes of charging of duty of excise- (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall - (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value. 5.1 Under the present Section 4 (d) for 'Transaction Value' has been prescribed as under : (d) 'Transaction Value' means the price actually pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods when sold for export to India for delivery at the time and place of importation, or as the case may be, for export from India for delivery at the time and place of exportation. This definition is similar to the definition in old Section 4 of the Central Excise Act which read as the price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal 6. A careful reading of the above provisions convey that the concept of valuation under 'Transaction Value' under the new Section 4 is different to the Valuation concepts under old Section 4 of the Central Excise Act, 1944, effective up to 01.7.2000 and Section 14 of the Customs Act, 1962. Under the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 4. Contextually, we notice that, in Arvind Mills case (supra), another Larger Bench examined the definition of 'transaction value' given under Section 4(3) (d) and held that the price payable at a later date could not be said to be the price payable at the time of removal and therefore could not be considered as the transaction value at the time and place of removal. The Bench did not find any significant difference between the deemed price under the old Section 4 and the actual price under the amended Section. We observe that the correctness of such a view is not beyond doubt. 7. In view of the above facts and doubts raised by the latter Larger Bench judgment in the case of Lucas TVS Limited vs. CCE, Chennai (supra), Registry is dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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